• Swindon & Wiltshire Economy
• Thursday September 10 2026

Tourism tax for West on cards – but hoteliers are concerned

Plans for an Overnight Visitor Levy in the West of England have moved a step closer, with the government setting out its position following a national consultation earlier this year.

Under government plans, Mayors will be given powers to introduce and set the levy. The levy will be charged as a percentage of accommodation costs, rather than a flat fee, to make it proportionate to the cost of holiday stays.

In an open letter to businesses across the region late last year, Mayor Helen Godwin said that the “tourism and visitor economy sectors – including businesses across the hotel, hospitality, cultural and creative industries – are part of what makes our part of the world so special.”

She acknowledged that there had been a challenging few years and promised that “nothing is happening overnight”, with a need to review best practice from elsewhere.

People and businesses across the West are set to be able to have their say in the coming months before plans are finalised – including on what proceeds might be spent on.

A small levy on short-term accommodation providers, including Airbnb-style apartment stays, is well-established across Europe and around the world – with money raised often invested into transport and local improvements.

The Mayor has previously called for the introduction of a short-term lets registration scheme, to ensure a more level playing field.

As a mayoral authority now in the top tier of devolution, the West of England is also set to benefit from future plans for more of the income tax already raised here to stay to be spent locally.

However, some Bristol hoteliers are concerned that the ‘tourist tax’ could do more harm than good and possibly prevent people from visiting the city.

Pramod Shaw, deputy chair of the Bristol Hoteliers Association, said: ““We are not opposed to investment in Bristol – quite the opposite; we love this city and are proud to represent it.

“But we have serious questions which must be answered before any so-called ‘Tourist Tax’ is introduced, and we intend to make sure those questions are heard loud and clear.

“Our industry has already absorbed significant financial pressures in recent years – soaring energy costs, increases in the National Living Wage and higher employer National Insurance contributions, which have all taken their toll.

“The Overnight Visitor Levy Bill has reignited fury across the business travel and hospitality industries, as this is not the time to add yet another cost to our sectors.”

Pramod said: “The BHA would like cast-iron guarantees that revenue raised will be ring-fenced and invested directly into Bristol’s visitor economy, improving transport links, enhancing the visitor experience and marketing Bristol more as a destination.

Helen Godwin, Mayor of the West of England, said today (Thursday): “We are used to paying a visitor levy ourselves when we go on holiday to other countries, and now is the time to look at making sure we can invest more in what matters through a small charge on overnight stays here – with common-sense exemptions where we need them.

“The West Country has such an exciting future. New-and-improved and upcoming attractions like the Bristol Zoo Project and Aviva Arena can, with continued backing, be joined by more top-quality sites like the Birnbeck Pier in Weston-super-Mare and Bath Fashion Museum.

“We know that local people also want to see further improvements to our transport network, particularly our buses. More late-night services would help more people enjoy what our region has to offer – and enable workers to get home more easily – and so would some more funding for public spaces including in central Bath and Bristol, alongside new support for the sectors that support tourism.

“Things like this become possible sooner if we raise new funding through an overnight visitor levy. We should grab the chance to take more control of our future with both hands, because a few quid here and there can add up to some big change.”

Secretary of State for Housing, Communities and Local Government Angela Rayner, said: “Our amazing towns and cities, and our picturesque rural and coastal communities welcome millions of visitors every year – local leaders should have the power to make the most of that popularity.

“This measure will give mayors the choice to raise and reinvest funding where it’s needed most. It’ll help support the local services, public spaces and attractions that both residents and visitors rely on, with decisions taken by people who know their area best.”

The move follows the Mayor and council leaders’ Growth Strategy, published in September 2025.

The everyday economy, including tourism and hospitality, was recognised as at the heart of life in the West of England: the country’s fastest-growing regional economy. Here in the West, those sectors have seen the highest job growth of any region in the country during the last decade, and currently provide 57 per cent of jobs in the region.

Visit West announced last summer that the visitor economy is now worth a record £2.7 billion annually – supporting 43,000 jobs in the region.

Compared to 2023, in 2024 international visitors stayed longer and spent more. Tourism-supported businesses’ turnover in the West that year was £3.43 billion. Thirty per cent of all spending by visitors was attributed to food and drink and 33 per cent to retail.