A tourist tax would be "another nail in the coffin" of our beloved seaside towns, an industry expert has warned. The Labour government has introduced the Overnight Visitor Levy Bill, which was included in the May 2026 King's Speech, to implement a tourist tax across English towns and regions.

The legislation gives revenue-raising powers to mayors, with the levy expected to target overnight accommodation such as hotels, B&Bs, guesthouses and holiday lets. While some authorities have welcomed the bill to mitigate overtourism, campaigners argue small and independently-owned businesses will be devastated by the tax. They have warned that areas such as Devon and Cornwall, in the South West, will be hit the hardest as they rely on domestic tourism.

As reported by the Telegraph, Pete Brend, director of Brend Hotels, said: "The tourism levy would be another nail in the coffin of seaside towns dependent on tourism. Employment in these areas depends on the industry. Any added costs are just taking away the potential of any growth for businesses, therefore leading to higher rates of unemployment.

"The Southwest mainly relies on domestic tourism. The concept of charging people who already pay council tax in the areas they live in an additional tax to stay overnight somewhere else in the country sounds absurd.

"I accept that charging a tourism tax for overseas visitors should be considered and would benefit cities such as London and Manchester, but it would have a limited effect on the Southwest’s economy."

While the exact structure of the tax will be determined locally, tourism groups anticipate either a flat fee, which could average around £2 per night, or a percentage-based charge up to 5%.

In Scotland, a similar visitor levy has seen Edinburgh launch a tourist tax at a rate of 5%. Meanwhile, legislation in Wales was passed to allow a national tax on visitors, set at £1.30 per person, per night, as early as next April.

Manchester became the first UK city to launch a tourist tax for visitors in April 2023. The £1 charge raised £2.8m in its first year.

Then mayor Andy Burnham said: "The commitment to a new visitor levy will enable us to continue to support our thriving visitor economy and invest in the infrastructure to better support that growth, like later public transport, and making sure that everyone has a positive experience in Greater Manchester."

Unlike national taxes, all revenue generated stays within the local region. It is then reinvested into transport links, infrastructure and public spaces.