Council leaders across the West of England welcome visitor levy to invest in region

Leaders from across the West of England have welcomed plans set out ahead of the Chancellor’s Budget for the region to be empowered to implement an overnight visitor levy, sometimes also known as a ‘tourist tax’, over the coming years.

A small levy on short-term accommodation providers, including Airbnb-style apartment stays, is well-established across Europe and around the world – with money raised often invested into transport improvements and local amenities and services.

The move follows the Mayor and council leaders’ new Growth Strategy. The everyday economy, including tourism and hospitality, currently provides 57% of jobs in the region. Here in the West, those sectors have seen the highest job growth of any region in the country during the last decade.

Visit West recently announced that the visitor economy is now worth a record £2.7 billion annually – supporting 43,000 jobs. Compared to 2023, last year international visitors stayed longer and spent more. Tourism-supported businesses’ turnover in the West last year was £3.43 billion. 30% of all spending by visitors was attributed to food and drink and 33% to retail.

Council leaders, including Deputy Mayor Councillor Kevin Guy in Bath & North East Somerset (B&NES) and Bristol leaders past and present, have long campaigned for the ability to raise revenue through a small charge on overnight stays to help maintain and enhance our area’s offer.

Helen Godwin, Mayor of the West of England, said: “Residents and visitors alike know how special our part of the world is, from our people to our culture to our nature. Tourism is now worth a record £2.7 billion to the West’s economy, which is a key industry for our new Growth Strategy over the coming decade.

“These new powers are a real vote of confidence in our region taking more control of our future. Proceeds from an overnight visitor levy, that people from across the West are used to paying on holiday ourselves, have the potential to support and enhance the sector’s businesses and workers – including with better transport options.”

Councillor Kevin Guy, Deputy Mayor and Leader of B&NES Council, said: “We are about to welcome tens of thousands of visitors over the next three weeks to our world-famous Christmas Market which contributes millions to our regional economy but also comes at a cost on our resources. So I welcome a levy which we have long been calling for because it will help making tourism work for everyone.

“We want to sustain the quality of the visitor experience while protecting the wellbeing of our communities, the levy should allow a fairer system, one that recognises the costs as well as the benefits of tourism and allows us to reinvest directly into the services and infrastructure that make great visits possible.”

Councillor Tony Dyer, Leader of Bristol City Council, said: “This is about more than introducing a levy – it’s about giving regions and local councils the power to make decisions that work for our communities. Tourism and hospitality are at the heart of Bristol’s economy, supporting thousands of jobs and local businesses. This levy should be a tool to strengthen that success, helping the sector grow sustainably while ensuring the benefits are felt across our communities. We will work closely with businesses to get this right and make sure any revenue raised is used in ways that bring real benefits locally for residents, visitors, and the sector itself.”

Councillor Mike Bell, Leader of North Somerset Council, said: “Our visitor economy is worth nearly £200m a year and employs a large number of local people and is an important sector for us. I have previously been sceptical about the benefit of a tourist tax. Thanks to high levels of VAT the UK tourism industry operates at a disadvantage compared to European towns and cities. Holidays here attract 20 per cent VAT but in most of Europe it is just 5 per cent. We have to be careful not to make that price disadvantage worse.

“However, we must also ensure that the tourism industry does not place an additional burden on our already stretched local government finances, and if a tourism tax enables us to reinvest the income in services that make the area better for both visitors and our residents then I look forward to reviewing the detailed proposals in due course.”

Councillor Maggie Tyrrell, Leader of South Gloucestershire Council, said: “Tourism is an important part of the region’s economy, and this levy gives us a sustainable way to support it. Through reinvesting in transport and local services, we can ensure the benefits of tourism in the area are felt across all our communities.”

Announcing the news, Secretary of State for Housing, Communities, and Local Government Steve Reed said: “Tourists travel from near and far to visit England’s brilliant cities and regions. 

“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

Bath, a city so historic that UNESCO listed it twice, was among the New York Times’ 52 must-visit places in the world this year. Bristol was recently named by Lonely Planet as one of the world’s best places to visit next year, with Weston-super-Mare tipped too as a top location for staycations in 2026.

In a major decentralisation of power from Westminster to the West of England, consultation with the tourism sector locally will proceed any implementation of a levy. A national consultation is open on gov.uk until 18 February for businesses, communities, and others with an interest in the measure.