Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government what assessment they have made of the potential impact of an overnight visitor levy on rural and coastal businesses which rely heavily on domestic tourism.

The government carefully considers the impact of tax measures on communities as well as on hospitality and tourism sectors. Evidence from international and domestic schemes suggested modest rates have minimal impact on visitor numbers.

Where changes are made to tax policy, relevant impact notes and assessments are published at fiscal events and otherwise as necessary in line with the government’s usual practice.

The overnight visitor levy would be a discretionary power for Mayors, who would be responsible for considering its local economic impact, including on hotels, consumers and visitor numbers. Mayors will need to decide whether to implement a levy, subject to a local consultation on specific proposals. This consultation will inform their decisions regarding whether and how a levy will be applied, and how any revenue is invested in their region.