Hotelier fears new tax will put off tourists

Hotel chairman Paul Callingham said the industry was already under pressure

A hotelier has warned guests will be put off by extra charges as English regional mayors are set to get the power to tax tourists for overnight stays.

Paul Callingham, chairman of Starboard Hotels Ltd, which owns the Windermere Manor Hotel in Cumbria, said the levy would be an "increased burden on hoteliers at a time when the industry is already under pressure".

However, Richard Sim, who owns restaurant and hotel businesses in Northumberland, said it was a great idea in principle as long as money was reinvested into the local community.

The government had said the tax would "unlock growth through investment".

The proposed 'tourist tax' would be used to invest in a mayor's region, particularly in transport and infrastructure, according to the plans.

But Mr Callingham said the levy had not been thought through and felt like it was a "direct tax on hotels".

"Guests will not pay extra as our rates are market driven," he said.

Hotel and restaurant owner Richard Sim called for local investment

However, owner of the Whittling House in Alnmouth, Mr Sim, said he was cautiously supportive of the tax as long as the price on tourists was not too high.

Regarding the price of the levy, the government said it would be "up to mayors and other local leaders to introduce a modest charge if it's right for their area".

Mr Sim said: "As long as the money that it's raising is going back in to help tourism and the tourism economy, then that's great."

Regional leaders have also been divided on whether the levy would benefit or damage tourism in the region, with Tees Valley Conservative Mayor Ben Houchen saying he would not implement it.

Westmorland and Furness Council said it could be on the table for South Cumbria, but not until 2028 at the earliest.

The local authority area is expected to get its first regional mayor in 2027, along with Cumberland Council.

A spokesperson from the Liberal Democrat-led authority said: "A tourism levy could not come into effect before 2028 and is something that our new Mayoral Combined Authority will be considering in due course once it is established."

Landscape charity Friends of the Lake District welcomed the possibility.

CEO Michael Hill said tourism had bought harms, including sewage discharge into lakes and rivers, and damage to the landscape from visitor car journeys.

He said: "A visitor levy would help to break the cycle of increasing tourism impacts and decreasing grants to local authorities to deal with them."

Cumberland Council has been approached for comment.

Additional reporting by Kieron Molloy, Local Democracy Reporting Service