UK Proposes Percentage-Based Tourist Tax for Hotel Stays
Israeli tourists heading to the UK face higher hotel costs as the government introduces a Visitor Levy Bill allowing local authorities to apply a percentage-based tourist tax of up to five percent on overnight stays.
Israeli tourists planning a trip to the United Kingdom in the coming years will face higher accommodation costs following the introduction of the Visitor Levy Bill to the British Parliament. The proposed legislation empowers local authorities to introduce a tourist tax on overnight stays, aimed at funding local tourism infrastructure.
Unlike fixed-rate tourist taxes common in other European cities, the British model will be calculated as a percentage of the accommodation cost. Consequently, visitors staying in luxury hotels will pay a significantly higher levy than those opting for budget accommodations or hostels.
Ten local government leaders have committed to capping the levy at a maximum of 5% of the room rate. For instance, a 200-pound room would incur a 10-pound tax, while a 500-pound room would see an additional charge of 25 pounds.
Backed by Housing and Local Government Secretary Angela Rayner, the government stipulated that all revenues must remain within local coffers to fund public transport, street maintenance, and cultural sites. Major cities including London, York, Liverpool, and Manchester have expressed strong support for the measure, with London Mayor Sadiq Khan welcoming the initiative to enhance the visitor experience.
The tourist tax follows another recent announcement regarding the Air Passenger Duty hike scheduled for April 2028. However, travelers will not feel the impact immediately, as the bill requires parliamentary approval, after which individual municipalities will decide whether and how to implement the levy.
