London and Other UK Cities Consider Implementing Nightly Tourism Tax—Key Information for Travelers

Traveling to the United Kingdom could soon become pricier, as several cities from London to Manchester are moving closer to implementing a new tax on overnight stays. The proposed charge would affect visitors staying in hotels, guesthouses, holiday rentals, and bed and breakfasts.

According to government officials, this measure aims to align the UK with other global cities that levy fees for overnight accommodations, such as New York, Paris, and Milan. Steve Reed, the UK's Secretary of State for Housing, Communities and Local Government, emphasized that the initiative would allow mayors to reinvest funds into local priorities and foster sustainable growth within their regions.

A 2020 study by the Local Government Association suggested that the tax could be structured as a percentage of the accommodation bill, a flat fee, or another variation. The revenue would be directed toward community projects, including public infrastructure, street enhancements in high-tourist areas, and improvements to transportation networks.

London Mayor Sadiq Khan welcomed the proposal, stating that the funds would support the citys economy and strengthen its status as a leading destination for tourism and business. Khan added that authorities would collaborate with the hospitality sector to ensure the levy maximizes benefits for both the city and local businesses.

Greater Manchester Mayor Andy Burnham also praised the plan, highlighting that the levy would help maintain economic growth over the next decade and support infrastructure improvements, such as cleaner streets and extended public transport services, ensuring visitors enjoy positive experiences.

The overnight stay tax is currently in a consultation phase, which is scheduled to end by February 18, 2026. The UK is not alone in implementing such measures: Japan plans to raise its hotel accommodation tax in Kyoto starting March 2026, while Venice imposes similar charges on overnight and day-trip visitors to manage overcrowding.

Author: Sophia Brooks