Emma Lewell MP: I will stand firm in my opposition to the introduction of a ‘tourist tax’
It is English Tourism Week. South Shields relies on the critical value that tourism brings to our local economy.
We have much to offer, from Arbeia Roman Fort, Souter Lighthouse, The Customs House, our Museum and Art Gallery, Ocean Beach funfair, our stunning coastline and a very strong hospitality offering to friendly cafes, pubs and great places to eat.
Colleagues and I worked with the Government to step in and reduce business rates for pubs. We now need a business rate cut and VAT reduction across the whole hospitality sector
I wrote to the Chancellor raising serious concerns over proposals to impose a ‘tourism tax’ via devolved powers to regional Mayors. Taxing our visitors will significantly increase the cost of their holiday. A ‘per person, per night’ additional charge will quickly add up for a family. When households are already under pressure with cost of living rises, this is demoralising and unaffordable. Families need a break. Taxing their break is a step too far.
Travelling within the UK will become unaffordable and removes income from places depending on tourism to survive. That includes employment. Businesses will close.
Our tourist destinations will be less attractive to overseas visitors.
In 2023, overseas visitors made 38 million visits to the UK and spent £31.1billion (up from £26.5billion in 2022) – Tourism directly accounted for £58billion of economic output in 2023.
The North East attracts over 69 million visitors a year, yet we sit at the bottom of national league tables, with the lowest visitor numbers of any region in England. The UK applies 20% VAT to accommodation, compared with reduced rates of around eight to 10% elsewhere. An additional levy will make the UK and especially regions like ours even less competitive. International experience shows that once levies are applied, they rise, faster than inflation.
I will stand firm in my opposition to a ‘tourist tax’ for South Shields. We must do everything in our power to actively attract and welcome visitors, support our local businesses, keep people in jobs and make our local economy thrive in an environment that is already very challenging.