London tourist tax set to be introduced, here's everything you need to know

"London Mayor Sadiq Khan has voiced support for the tourist tax plans, but has said he will not comment on "speculation" and would wait for confirmation from the Government before making any concrete preparations to roll out the levy. A spokesperson for the mayor of London told the Local Democracy Reporting Service (LDRS) that "The mayor has been clear that a modest tourist levy, similar to other international cities, would boost our economy, deliver growth and help cement London's reputation as a global tourism and business destination.""

"The tax mimics schemes already in place in other major cities. Paris applies a fixed nightly fee per person depending on accommodation type; Berlin and Cologne use a percentage of the room cost. In Edinburgh, for instance, a 5 per cent levy is due to come into force next July and will be charged on the first five nights of a visitor's stay. In France and Italy, the cost varies depending on the official star rating of the property, the location and the type of accommodation."

"New York City raises £493m every year through its tourist tax, whereas in Tokyo, there is a single flat fee for all tourist accommodation bookings, which raises £35m. Profit estimates for London's proposed tourist tax have suggested it could raise up to £240m a year, according to the Centre for Cities. This proposed London tax would charge a similar 5 per cent levy applied to average accommodation costs. This would translate to around £11.50 per night for a typical hotel stay or Airbnb stay, assuming average nightly rates, the extra charge could be approximately £10 per night."

London plans to introduce a tourist tax charging overnight visitors a fee on hotel stays and short-term rentals such as Airbnbs, based on a cross-party GLA recommendation. The mayor has expressed support but will await government confirmation before implementing the levy. The proposal mirrors schemes used by Paris, Berlin, Cologne and Edinburgh, with variations based on accommodation type, star rating and length of stay. International comparisons show varied revenue: New York raises £493m annually, Tokyo raises £35m, and projections suggest London could raise up to £240m a year. A proposed 5 per cent levy would add roughly £10–£11.50 per night on average.

Read at CN Traveller