Bristol hoteliers fear tourist tax could deliver ‘disastrous blow’

Bristol hoteliers have expressed fears a tourist tax will hit visitor numbers in the city and deliver a “disastrous blow” to business.

Their comments come after the city’s council commissioned a feasibility study into introducing a visitor charge.

If a charge is recommended and approved by the council, visitors would see a levy added to the price of accommodation in the city.  

It is understood that this would be done by imposing a tax to fund a business improvement district (BID).

Chair of the Bristol Hoteliers’ Association, Raphael Herzog, said that while other European cities charge tourist taxes, businesses in those areas are not subject to the UK’s 20% VAT rate.  

Herzog added: “We have repeatedly been calling for a lower rate of VAT to be applied to our sector but our pleas have fallen on deaf ears.

“With increases in the minimum wage and the raising of employer National Insurance Contributions, the last thing we want to see is yet another challenge to our businesses. It feels like, once again, we are being hit for no sound reason.”

The levying of tourist taxes in UK cities remains limited. In 2023, Manchester became the first UK city to impose a £1 visitor charge on overnight stays in city centre hotels or holiday apartments to fund a BID.

Several BIDS already operate in Bristol and many hotels contribute to them.

Edinburgh is to introduce Scotland’s first ever visitor levy next year, adding a 5% tax to overnight hotel stays from 24 July 2026 in a move expected to raise up to £50m per year to invest in the city.

Herzog expressed concerns that Bristol would struggle to compete with rival cities if a charge was imposed.

He added: “Why would a guest pick Bristol, and pay a tourist tax, when there are plenty of other cities they can visit which do not impose additional charges. It would surely impact on the number of people wanting to visit Bristol compared to other cities.”

The BHA has suggested the city council instead looks at the option of implementing a licence fee on Airbnb hosts.

Photo: Sion Hannuna/Shutterstock