'Won't work here' - UK tourism tax slammed as South Shields businesses fear move
South Shields business owners are worried a proposed tourist tax will hit them hard.
The owner of a South Shields guest house has said a tourism tax just won’t work in South Tyneside.
Janet Bates, who owns the six-room Forest Guest House on Ocean Road, has said the proposed tax will damage the tourism trade in the town.
While tourist taxes are commonplace in places like Spain and Italy, they’ve not been a thing in the UK. Proposed plans would see mayors across England given the chance to add a levy to overnight stays on these shores.
‘Everyone in this town is struggling’
Bates, who has owned the site on Ocean Road for 11 years, said: “We’re a little beach holiday place.
“Everyone in this town is struggling already with high fuel prices, high energy prices - business energy isn’t capped and people forget that.
“I think a lot of people can’t afford to travel. Everyone’s feeling the pinch
“I know they have it abroad but it won’t work here. Another tax is just another reason for people to stay away.”
David Murray of Athol House on Westoe Road shared the same concerns: “Any extra tax for small businesses is going to be a nightmare. It’s just the situation right now.
“It’s hard enough as it is.”
These thoughts are echoed by South Shields MP Emma Lewell, who spoke up on the topic in parliament last week.
Lewell said: This extra burden is very likely to tip hotels, B&Bs and small providers over the edge, and it will be felt most acutely by low income visitors.”
It is suggested the funds from the proposed tax will be used by local authorities to improve local areas.
This is, however, not something felt by Bates at her guest house: “The town centre should be buzzing, the council need to do far more to bring people in.
“This is my home town, I love South Shields... but sadly over the last couple of years they haven’t done great by it.”
The guest house is currently “ticking over” according to Bates, 58 , but her hopes going forward are inconclusive: “Bookings from a distance aren’t coming.
“We’re not as busy as we should be as things are.”
North East Mayor backs tourist tax
Visitors to the North East could soon pay a £2-per-night tourist tax under new powers handed to regional mayors.
In December, North East mayor Kim McGuinness said she was drawing up proposals for the levy, which would apply to hotel stays, holiday lets, B&Bs and guesthouses.
She had originally backed a £1 nightly charge in her 2024 election campaign, but says a £2 rate could raise around £20m a year based on current visitor numbers.
Regional leaders want to grow visitor numbers significantly, with the North East currently attracting the fewest international tourists in England.
McGuinness said her office is “still working” on the plans and added: “That is much lower than you see in most places across Europe.”
She insisted: “Every single penny of it will be spent on boosting the tourist economy and culture in our region.”