The idea was first mooted during former First Minister Sir Keir Starmer’s government in November and is similar to plans being run in Scotland and European destinations.
The overnight visitor levy, which was outlined in the King’s speech in May, has not yet been introduced in Parliament.
Prime Minister Andy Burnham is framing the policy as part of his wider devolution agenda.
Two cities in England already operate their own voluntary schemes: a £1 per room per night charge for city visitors in Manchester, introduced when Burnham was the region’s mayor, and a £2 per night charge in Liverpool. These are business-led programs where hotels choose to pool the money raised to support local tourism.
Until now, regional mayors have not had the power to impose such fees themselves, but argue they are necessary to boost economic growth.
Steve Rotheram, mayor of the Liverpool city region and a close ally of Burnham, said the “modest tax” could raise up to £18 million a year and be reinvested in “events, culture, experiences and infrastructure” that attract visitors.
Labor mayors in West Yorkshire, London and the west of England also signaled on Thursday that they will introduce the tax.
The Labor mayor of South Yorkshire, Oliver Coppard, welcomed the move but told BBC Radio Sheffield that Labor mayors would consult industry leaders before implementing it. He said it could be spent on areas including street cleaning and late-night buses.
David Skaith, Labor mayor of York and North Yorkshire, said money raised through a levy would help improve town centers and invest in public services.
However, he added: “No decision will be made without full public consultation and greater engagement with the hospitality and tourism sector.”
London Mayor Sir Sadiq Khan called for the tax to be implemented as soon as possible, adding it was right that the capital had the same power as other cities around the world to use the charge. He is understood to support a maximum tax of 5%.
John Chappell, who runs five caravan parks in Skegness, Lincolnshire, told BBC Your Voice that many English resorts have visitors on tight budgets already struggling with the cost of car trips.
He said an additional cost would “kill the industry.”
“Tourists are the saviors of our resorts, not demons, and ill-considered ideas like these show how out of touch politicians are with reality,” he added.
Taxes are common in Europe and the rest of the world, and New York, Amsterdam and Rome all apply nightly charges to accommodation stays to fund local services. However, they have a limit in several European cities.
In Scotland, local authorities may charge a visitor fee for overnight accommodation. In Edinburgh, the rate is 5% for those staying overnight in hotels, bed and breakfasts and self-catering facilities, capped at five nights.
It has had a mixed reaction, with some praising the additional investment but Scottish Ballet responding by cutting performances and criticizing the “unsustainable economics of touring in Edinburgh”.
In Wales, a maximum tax of £1.30 per person per night will be introduced in April next year, but it will be up to local authorities to decide whether to implement it.
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