The proposed tourism tax in the South West of England has sparked a heated debate, with concerns rising from the tourism industry and local businesses. The Overnight Visitor Levy, as outlined in the King's Speech, aims to empower regional mayors to implement an additional charge on visitors, mirroring the practices of Scotland, Wales, and several European countries. However, this proposal has ignited fears among industry professionals, who warn of potential negative consequences for the region's tourism sector.
Peter Brend, director of Brend Hotels, a prominent player in Devon and Cornwall, expresses his apprehension, suggesting that the tax could deter visitors and potentially price small businesses out of the market. Brend highlights the financial burden on families, who might face an additional £50 for a week-long stay, leading to reduced spending within the local economy. This sentiment resonates with Sally Everton, general manager of Visit Devon, who emphasizes the potential de-incentivization of visitors, particularly affecting small, independent accommodation providers in an already competitive market.
The St Moritz Hotel and Cowshed Spa in Cornwall, a renowned establishment, joins the chorus of criticism. Hugh Ridgway, one of its founders, underscores the significant contribution of tourism to the local economy, supporting thousands of jobs and businesses. However, he also points out the delicate financial situation in the hospitality sector, where margins are slim, staff costs are rising, and consumer confidence is fragile. The timing of this proposed tax, in such a vulnerable economic climate, is seen as a potential catalyst for further strain.
Despite the concerns, Jayne Kirkham, Labour MP for Truro and Falmouth, acknowledges the potential benefits of the tax, particularly in alleviating the strain on local services like the NHS and police. She suggests that the money could be reinvested to enhance the overall visitor experience and infrastructure. However, she also emphasizes the importance of listening to industry voices and understanding their potential impact.
The Ministry of Housing, Communities and Local Government, while acknowledging the consultation process, maintains that the final design of the visitor levy is yet to be determined. They assert that the levy's primary goal is to ensure that tourism benefits the regions more significantly, and that mayors will have increased financial resources to invest in local priorities. Yet, the industry's skepticism remains, raising questions about the effectiveness of this approach in a highly competitive and already taxed tourism market.
