Mayors across England have been given new powers to introduce a tourist tax, the government announced last week, opening the door for London to charge visitors a small nightly fee on hotel stays.
Under the plans, the Mayor of London could add a modest levy to hotel bills – a move already common in hundreds of cities around the world, from Rome to Amsterdam to Barcelona. For one of the most visited cities on Earth, London’s lack of such a charge has long been the anomaly.
Tourism brings huge economic benefits to the capital but piles pressure on services, from transport to street cleaning. Supporters argue a charge equivalent to roughly the price of a coffee would ask visitors to contribute directly to the upkeep of the city, rather than leaving local taxpayers to pick up the full bill – and insist it is far too small to dent visitor numbers, given what most tourists already spend on flights, hotels and entertainment.
But the announcement has already sparked a row over who gets the money. Borough leaders insist the proceeds must be passed to local councils – the bodies that clean streets, maintain public spaces and manage the impact of visitor numbers – rather than hoarded at City Hall by Sadiq Khan. They have also warned against councils being forced to bid against one another for a share of the cash. Mr Khan has previously backed an overnight visitor levy for London hotels capped at five per cent.
In Richmond, the reaction has been fierce. Council leader Cllr Gareth Roberts has branded the plans “another kick in the teeth for Richmond”, saying the idea of a tourist tax had merit but “for all of the money to be taken out of Richmond and grabbed by the Mayor of London to add to his already swollen coffers, leaving nothing for the borough, is simply wrong.”
Richmond welcomes around 4.5 million visitors a year – to Kew Gardens, Hampton Court Palace and Richmond Park, and to streets made famous by international filming, including Ted Lasso – with around 600,000 staying overnight. Cllr Roberts said those visitors came with a price tag: more street bins to empty, more wear and tear on roads and pavements, more impact on parks and open spaces.
He added that the plans followed the government stripping Richmond of nearly 60 per cent of its funding to support councils elsewhere, alongside the announcement of a Mansion Tax that will see owners of some borough properties paying extra, with none of the money earmarked for local services. “All we’re asking for is fairness,” he said.
How any London tourist tax would work in practice – and crucially where the money would go – is still to be decided. But councils are clear on one thing: if tourists generate the revenue, the communities that host them must see the benefit.
