Local authorities across the UK are set to gain greater control over tourism funding following the government’s announcement on the proposed overnight visitor levy, commonly referred to as the UK tourist tax.
Under the plans announced by the UK Government on September 10, mayors and local leaders will be given powers to introduce a levy on overnight accommodation in their areas. Revenue generated through the charge could be reinvested in tourism and local economic development.
The government said the additional funds could support public spaces, local services and visitor attractions that benefit both tourists and residents. The measure is part of wider efforts to give local authorities greater control over funding and tourism development.
The levy will be calculated as a percentage of accommodation costs, rather than being introduced as a flat charge. The government has also indicated that lower-cost stays will be protected under the proposed framework.
UK residents will not automatically be exempt from the levy when staying overnight in another UK city or region where a local authority chooses to introduce it.
Angela Rayner, Secretary of State for Housing, Communities and Local Government, said the measure would allow local leaders to raise and reinvest funds according to the needs of their communities. The policy forms part of broader fiscal devolution reforms aimed at giving local authorities greater powers over their areas.
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