WTTC Cautions UK Destinations Against City-Specific Overnight Hotel Taxes

Image: London, UK cityscape. (Photo Credit: Mistervlad/Adobe)
Image: London, UK cityscape. (Photo Credit: Mistervlad/Adobe)
Lacey Pfalz
by Lacey Pfalz
Last updated: 9:40 AM ET, Wed February 11, 2026

The World Travel & Tourism Council (WTTC) is cautioning against new local overnight visitor taxes in England, warning that differing local policy and additional costs could weaken the United Kingdom’s travel industry. 

The U.K. has recently considered proposals to give individual cities the power to levy overnight visitor taxes. Yet WTTC’s economic data shows the United Kingdom's travel industry as a whole is underperforming compared to other countries, and a higher cost for travelers might further hurt the industry. 

Global travel and tourism GDP grew 6.7 percent last year, but the United Kingdom’s industry grew 4.3 percent, 36 percent below the global average. One in eight jobs, or around 4.5 million people, are in travel and tourism. 

Edinburgh and Glasgow both introduced new tourist taxes for overnight visitors last year. Edinburgh was the first city within the U.K. to introduce an overnight tourist tax in January, charging 5 percent of their stay beginning mid-2026. Glasgow’s tax doesn’t go into effect until 2027, but will add five percent to the cost of their overnight stays.

City governments in London, Manchester and elsewhere are considering proposals that would follow suit, to use the increased tax funds to invest in transport, infrastructure and other important initiatives. 

“New visitor levies in the UK would dent growth, restrict job creation and risk making the country far less competitive in the global economy,” said Gloria Guevara, President and CEO of WTTC. “Our research proves time and time again that higher levies force travelers and businesses to choose alternative destinations as they opt for more affordable and predictable markets to visit and invest in. 

“It is certain that jobs would go to other destinations outside of the UK. Policymakers need to focus on making the UK more competitive, re-investing tourism-generated revenues more effectively.”

The World Economic Forum’s 2024 Travel & Tourism Development Index ranks the United Kingdom 113th out of 119 for price competitiveness, due to high taxes, operating costs and other traveler expenses. As the global economic crisis worsens, this will only deter more travelers from visiting the United Kingdom. 

The WTTC recommends instead reducing the burden of cost on visitors, providing a more consistent national policy and devoting tourism-generated funds towards infrastructure, local communities and destinations.  

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Lacey Pfalz

Lacey Pfalz

Senior Editor, News & Features

Lacey Pfalz is Associate Editor at TravelPulse. She's a passionate advocate of responsible travel and believes the best travel experiences happen outside of a planned itinerary. Lacey currently lives in rural Wisconsin. She can be reached at [email protected].

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