Tourism Levy Impacts in England

The modeling considered three separate scenarios: a 5% levy on accommodation, a £2 levy per person per night, and a £2 levy per room per night. Every scenario results in a reduction in GDP, tourism spending, nights spent in accommodation, and total jobs.

The introduction of an accommodation levy would influence the decision-making processes of domestic and international travelers. A 5% levy could lead to 11.9 million fewer visitor nights and £1.8 billion less in tourism spending in 2030. Regions with a larger tourism industry will be impacted the most, in absolute terms.

Lower tourism spending would affect the wider economy, impacting GDP, employment, and investment by weakening supply-chain demand and reducing household spending as labor market conditions soften. The scale of these impacts would increase in line with the size of the levy.