SINGAPORE, 20 February 2026: Research suggests the UK economy could lose at least UKP14 billion if daily visitor taxes are introduced, the World Travel & Tourism Council (WTTC) reports in its latest research paper.
Representing the private sector in the Travel & Tourism industry, WTTC highlights the damage that would be done to the UK economy if new visitor levies are introduced, saying: “Billions of UK pounds would ‘disappear from the economy’ as international visitor numbers dry up.”
The research findings, conducted among 2,502 people by WTTC and research agency GSIQ between 7 and 11 February, have been released as the UK Government’s consultation on whether Mayoral Strategic Authorities should be given powers to introduce tourism levies across England.
The research found that, among those interviewed in the UK’s largest visitor source markets — the USA, France, and Germany — 29% would consider alternative destinations or decide not to visit the UK if a UKP10 tax was introduced.
A substantial drop in visitors to the UK would have a fundamental impact on the economy. In 2027, the reduction in visitor spend from all international source markets could amount to UKP14.4billion if the tax were set at UKP10.
WTTC’s President and CEO, Gloria Guevara, said: “Our research couldn’t be any clearer – proposed visitor taxes would lead to a slump in international visitor numbers to the UK, as well as far fewer domestic visitors to popular English destinations. Billions of pounds will be wiped from the UK economy, leading to much higher unemployment, especially among small shops, restaurants and suppliers to the hospitality sector.”
The proposed visitor tax would likely affect families the most. 42% of those interviewed said it would be “a big issue or very big issue” when travelling as a family and could have a serious impact on domestic tourism if applied to British nationals visiting cities in their own country.
Recent WTTC data show global Travel & Tourism GDP is forecast to grow by 6.7% in 2025, while the UK is expected to grow by just 4.3%, implying UK growth is 36% below the global average.
Travel & Tourism supports around 4.5 million jobs in the UK, equivalent to roughly one in eight jobs nationwide, underlining the importance of maintaining competitiveness in a sector that plays a critical role in employment and regional growth.
For more information about WTTC, visit wttc.org.
(Source: WTTC)
More details on the proposed tax
The future of the UK visitor tax is shifting from a theoretical debate to a possible rollout later in 2026. Because the UK is decentralised, the “tourist tax” is governed differently in the three nations — England, Scotland and Wales
England: The “Mayoral Levy” (in consultation). England does not yet have a national tourist tax, but the government is moving toward a discretionary model in which local mayors can choose to implement one.
Current Status: A major government consultation just closed on 18 February 2026. It explored giving Mayors (such as those in Manchester, Liverpool, or the West Midlands) the authority to charge for overnight stays.
The Proposal: Likely a flat fee (UKP1– UKP2) or a small percentage (2–5%) per night.
Future Outlook: If legislation is enacted, the first English cities could announce formal levies later in 2026, with a 2027 start date.
Scotland: Leads the way (launching July 2026). Scotland is the furthest ahead, having already passed the Visitor Levy (Scotland) Act.
Edinburgh: The Scottish capital will be the first major UK city to launch a visitor tax. Starting 24 July 24, 2026, visitors will pay a 5% surcharge on their accommodation (capped at five nights).
Other cities, such as Glasgow, Aberdeen, and Stirling, have confirmed they will follow in 2027 with rates ranging from 3% to 7%.
Flexibility: New 2026 amendments now allow councils to choose between a percentage of the bill or a flat “per night” fee.
Wales: Launching April 2027. Wales has finalised its structure but is giving businesses more time to prepare.
Rates: Unlike Scotland’s percentage model, Wales uses a fixed fee:
UKP1.30 per person, per night for most hotels and Airbnbs. 75p per person, per night for hostels and campsites.
Key date: Local councils can officially activate the tax starting 1 April 1 2027.
(Additional background provided by Gemini)
