London and Other UK Cities Plan to Add a Nightly Tourism Tax-What Travelers Should Know

"We're giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come."

"The extra funding will directly support London's economy, and help cement our reputation as a global tourism and business destination... As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses."

"The new tax would apply to travelers staying at hotels, holiday rentals, bed and breakfasts, and guesthouses."

Several local governments across the United Kingdom are preparing to launch a new tax on overnight stays. The levy would apply to hotels, holiday rentals, bed and breakfasts, and guesthouses. The government framed the change as aligning UK cities with other global destinations such as New York, Paris, and Milan. A 2020 Local Government Association analysis noted the charge could be a percentage of the bill, a flat fee, or another variation. Revenue from the levy is intended for local priorities including public infrastructure projects, street improvements in high-traffic areas, and transportation enhancements.

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