Visitor Levy
The question
To ask the Secretary of State for Housing, Communities and Local Government, what estimate he has made of the potential annual revenue from the proposed overnight visitor levy; and whether an Impact Assessment has been produced.
Answered by Alison McGovern
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy.
The Visitor Levy Consultation, running until 18 February 2026, sets out the details of the proposals for this power. This consultation will ensure the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.
The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult with businesses and their communities on specific proposals including the rate at which the levy is set – which will determine the revenue raised. Rates vary across the world, for example from 2% in Turkey to 12.5% in Amsterdam. Mayors will also be required to produce an Impact Assessment.
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