A red double decker bus travels across Westminster Bridge at sunset, with Big Ben and the Houses of Parliament in the background. Balate.Dorin / Shutterstock.comThe CEO of Access Hospitality, Champa Magesh, has expressed concerns over the proposed UK Tourist Tax, emphasising the need for careful consideration of its design and impact on the visitor economy. Magesh pointed out that whilst overnight levies are not a novel concept, their implementation must ensure that the funds collected are reinvested effectively to benefit the hospitality industry.
Magesh noted that every pound spent on tax is a pound not invested back into enhancing guest experiences, such as service, food, and drink. This is particularly significant given the current high costs of labour, food, and energy. "That wider impact needs to be carefully considered," she stated, highlighting the importance of balancing tax collection with industry growth.
The hospitality sector, a major employer in the UK, plays a crucial role in supporting local economies by attracting visitors to towns and cities and generating economic activity beyond individual establishments. Magesh argued that any new levy should be part of a collaborative effort with the industry, ensuring that operators have a say in its design and transparency over how the funds are used.
She urged the government to recognise the hospitality sector's contribution to growth and employment, similar to other industries. "If a levy is introduced, operators should have a meaningful voice in its design and clear visibility over how the money raised will be reinvested," Magesh concluded, advocating for a partnership approach to strengthen the destinations that the hospitality sector helps to create.
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