Tourist tax risks creating 'uneven playing field'

The owner of a holiday park in Derbyshire has voiced concern over the prospect of a tourist tax being introduced for visits to the county.

It was confirmed on Thursday that regional mayors are set to gain new powers to charge an uncapped levy on overnight stays for visitors.

But David Brown, whose family owns Hoe Grange Farm holiday accommodation near Matlock said the change could lead to uneven pricing if it is not applied over the border in Staffordshire.

East Midlands Mayor Clare Ward said: "If we want a burgeoning, growing visitor economy in this region, which we should have, we should be able to fund it and not ask local taxpayers to."

"We're having extra costs to pass on put to us," Brown said.

"The customer doesn't really look at that - they look at the cost of the holiday.

"Therefore we're going to have to trim our margins back to include this, we won't be able to add it on top.

"As it's so up in the air if all areas will commit to this, it's going to create a very uneven playing field, I'm afraid.

"If an area, say Staffordshire, decides not to do it, and Derbyshire area does, then the price is different for a family going on holiday just over the border."

He also suggested the money could be spent on promoting the area and smaller businesses in tourism and hospitality, rather than infrastructure.

"If it gets taken off to run other things like parks and toilets - I know visitors use those but it would be very difficult for us to justify collecting a tax or a levy to spend on infrastructure where that should really be being done by central government," he said.

Labour's regional mayors in England - including Clare Ward - have pledged to cap the new fee on visitors' overnight stays at 5%, while Reform UK's two regional mayors and the two Conservative mayors are likely to oppose any levy given criticism from their national parties of the policy.

Steve Perez, founder and chief executive of Global Brands, which produces drinks and owns the Casa Hotel and Peak Edge Hotel in Chesterfield, has also expressed concern.

He said: "As if the combination of a 20% VAT rate, increased National Minimum Wage, higher Employer National Insurance Contributions, reduced business rates relief, and increased alcohol duty haven't had a big enough impact on the hospitality industry over recent years, now we have this tourist tax.

"It's a tax that would not only hurt the pockets of holidaying Brits, but also the restaurants, pubs, bars, cafes and hotels that all rely on a tourism trade to continue operating and employing local people – especially in rural and coastal communities.

"This tax will risk driving tourism overseas instead of here in the UK – having a huge impact on local economies and only driving more closures than we're already witnessing."

Ward appeared on the BBC's Politics Show East Midlands on Sunday to speak about the levy.

She said: "There's lots of things that will be a huge benefit to our community but they don't then have to pay for it because those people who come in as visitors staying overnight will pay a very modest a small amount of money in order to do it

"It's common practise right around the world where people go on holiday to Europe to America to Canada or Australia, they pay a small percentage."

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