The UK government is moving forward with plans to grant regional mayors the power to implement 'visitor levies'—a form of local tax on overnight stays. This policy, which was highlighted in the King’s Speech this past May, follows advocacy from regional leaders such as Andy Burnham of Greater Manchester and Steve Rotheram of the Liverpool City Region. While similar visitor taxes are already in operation in parts of Scotland and Wales, the proposed legislation would expand this authority to mayors across England.

Industry representatives have raised significant concerns regarding the potential economic impact of these levies. Hospitality sector leaders argue that additional costs for tourists could discourage travel to specific regions, ultimately putting local jobs at risk. The debate centers on the balance between providing mayors with new revenue streams for local infrastructure and maintaining the affordability of the hospitality sector. While proponents suggest the funds are necessary for regional development, critics within the industry fear that the cumulative effect of such taxes will harm businesses already operating on thin margins. As the government prepares to announce further details, the hospitality sector is bracing for the potential financial implications of this new regulatory power.