Tourism taxes spreading in the UK

The British government has announced plans for legislation that will allow cities in England to charge an overnight tourism tax, a power already held by Scottish and Welsh cities.

Manchester and Liverpool already have such taxes through loopholes in a previous law. Scotland passed an enabling law in 2024 and a tax is in effect in Edinburgh; Glasgow and Aberdeen are expected to add them soon. Wales cities will gain the authority next year.

The term ‘tourism tax,’ while widely used, is actually a misnomer, as the fees apply generally to all kinds of overnight visitors. Some are levied per visitor and others by room per night. The fees are usually collected by the hotel or rental property owner as part of the bill.

Image: Edinburgh, viewed from Edinburgh Castle

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