Bath could be set to introduce tourist tax after announcement

Tourists heading to Bath, which welcomes six million visitors every year, with 3.6 million of staying overnight, could have to pay the tourist levy after the government confirmed that local mayors would have the power to charge for overnight stays.

On Tuesday, November 25, local government secretary Steve Reed announced the power would be introduced, with Bath falling within the West of England Combined Authority (WECA).

He said: “We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

Bath attracts around six million visitors every year, making it one of the UK’s most visited heritage cities. While tourism brings jobs and supports local businesses, Bath and North East Somerset Council (BANES) has also said that it places significant pressure on infrastructure and services.

A tourism tax is imposed on short-stay accommodation, and gives local authorities the chance to charge people visiting the area.

Wednesday, November 26, councillor Kevin Guy, leader of Bath & North East Somerset Council, welcomed the new powers.

BANES has already unanimously voted in favour of being able to introduce the tax at a council meeting in July, although not necessarily to introduce the fees.

Councillor Guy, who is also the deputy Mayor of the WECA, which will be given the tax-raising powers, said: “We are about to welcome tens of thousands of visitors over the next three weeks to our world-famous Christmas Market which contributes millions to our regional economy but also comes at a cost on our resources.

“So, I welcome a levy which we have long been calling for because it will help making tourism work for everyone. 

“We want to sustain the quality of the visitor experience while protecting the wellbeing of our communities. That means giving councils the tools to manage tourism in a way that reflects local needs and priorities.

Bath could be set to introduce a tourist tax. (Image: Bath and North East Somerset Council)

“I am proud of the huge role Bath plays in supporting the national visitor economy – the levy should allow a fairer system, one that recognises the costs as well as the benefits of tourism and allows us to reinvest directly into the services and infrastructure that make great visits possible.” 

Bath & North East Somerset Council will work closely with the West of England Combined Authority (WECA), Visit West and the local visitor economy to explore how the levy could be introduced. Any scheme would be developed in consultation with the hospitality sector, which has faced significant financial pressures since COVID.

The council has said that last year, the Bath Christmas Market attracted an estimated 444,000 visitors, generating £60.4 million turnover for businesses and supporting more than 500 jobs. However, events and tourism also create costs for the council beyond the running of these attractions.

Councillor Guy added: “This levy should just be the start of a conversation with Government to make the UK tourism sector one of the most successful and sustainable in the world.” 

According to reporting by the Press Association, the possible introduction of tourist levies has been hit with criticism. Lord Houchen, the Conservative Tees Valley mayor, said: “I won’t be using this power.

“There will be no tourist tax in Teesside, Darlington and Hartlepool for as long as I’m mayor. Thanks, but no thanks.”

Kate Nicholls, chairwoman of industry body UKHospitality, warned the “damaging holiday tax” could cost the public up to £518 million, adding: “Make no mistake – this cost will be passed directly on to consumers, drive inflation and undermine the Government’s aim to reduce the cost of living.”