Tourism: Overnight Visitor Levy

Debate between Jim McMahon and Jessica Toale

Tuesday 15th September 2026 Commons Chamber

[Jim McMahon]

As I have set out, it is for local areas to decide whether this is right for their place. Importantly, on whether this is a new tax, every tax is of course a tax, but the question is: where is the accountability and where does that money go? Our mayors and foundation authorities will be required to set out in consultation how much they want to raise and for that to be proportionate to their local area, and to do an impact assessment of the proposed levy and, importantly, set out where the money will be invested.

In relation to places without a levy, just think about who pays for the impact of tourism, who puts on the events and performances that bring people into the local area, and what is the wider experience? I went away to North Yorkshire in the summer, and my experience was not just the accommodation we stayed in, but visiting the local village and the local town, and driving around the local area. We need to think about the visitor experience, which is wider than just the accommodation where people stay, because it is the place where they go.

[Jessica Toale (Bournemouth West) (Lab)]

I represent a seaside constituency in Bournemouth West, and the vast majority of my hoteliers are supportive of an overnight levy, in part because Bournemouth, Christchurch and Poole council has axed its stand-alone tourism department, and because we get 10 million visitors every summer and no increase in resources to deal with that. In his opening remarks, the Minister mentioned that most other G7 and European nations have some sort of overnight levy, and people who have travelled in Europe are really used to that. Can he tell us what lessons the Government have taken from such experiences overseas?

[Jim McMahon]

I congratulate my hon. Friend on being the champion she is for Bournemouth. I would reflect on how the experience there, with the cuts to local government over many years, has impacted the services on the ground that would have been provided—both the neighbourhood’s quality of place and the economic focus on tourism. We need to start rebuilding them, and this may be one way of doing so.

On the lessons learned, places may approach this with a flat rate, so no matter where people go, everyone will pay £5, or whatever. However, we believe that at its core this has to be fair and proportionate, so we ask ourselves, “Why should somebody visiting a guest house in Blackpool pay a flat fee in the way somebody visiting the Ritz here in London would?” That is not fair or proportionate, but a percentage rate is.