Fears tourism tax will price firms out of market
BBCTourism figures in the South West have raised concerns about the impact a new tax on visitors could have on trade.
The Overnight Visitor Levy, set out in Wednesday's King's Speech, would allow regional mayors to introduce the extra payment. Other areas with lower levels of devolution in England could also be allowed the option to make the charge.
However, the idea has been criticised by people working in south-west England's tourism industry, who fear it could put people off visiting the area.
A Ministry of Housing, Communities and Local Government (MHCLG) spokesperson said it had held a consultation on the policy and the intention was to allow leaders to reinvest funds locally.
The government said the move would bring England into line with Scotland, Wales, and several other European countries where tourists are charged a tax.
But Peter Brend, director of Brend Hotels which has sites across Devon and Cornwall, said he was worried the levy could cause people to have second thoughts about making bookings.
"Hospitality has been given a rough ride so to add an extra tax on top would just almost price us out of the market," Brend said.
"If a family of four were to come and stay for a week, it could cost them an extra £50.
"That's £50 they don't have to spend in our shops, our restaurants and around our local community."
Sally Everton, general manager of Visit Devon, said the levy could harm the region's tourist economy unless the money was reinvested into the sector rather than going to general council funds.
She added: "I have strong concerns the proposed tourism tax would de-incentivise visitors, making the already expensive UK market with a 20% VAT threshold less competitive, particularly for small, independent accommodation providers.
"While some officials see potential for reinvestment, many of our local businesses fear it will hurt tourism and damage the visitor economy overall."
St Moritz Hotel and Cowshed SpaThe team at the St Moritz Hotel and Cowshed Spa in Trebetherick, Cornwall, also condemned the levy.
Hugh Ridgway, one of its founders, said: "People travel from across the world to stay, eat, and spend in Cornwall, and support thousands of local jobs and businesses."
Yet, alongside us, every Cornish hospitality operator is now working almost to breaking point just to make budget and break even.
Margins are wafer thin, staff costs are soaring, energy remains volatile, and consumer confidence is fragile.
"And now Westminster thinks the answer is to tax visitors even more."
'Listen to industry voices'
Jayne Kirkham, Labour MP for Truro and Falmouth, said she knew the tax would be "controversial".
However. she said the money could be good for Cornwall due to the strain tourism put on local services including the NHS and police.
"From that point of view, it does make sense, but of course we have a tourism economy which is fantastic and we have to listen to industry voices and see if they think it will have an impact," Kirkham said.
The Ministry of Housing, Communities and Local Government said the final design of the visitor levy had not yet been decided.
A spokesperson added: "We're clear that the levy will ensure areas benefit even more from tourism and mayors will have more money to invest in local priorities."
