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Almost 90% of hoteliers say bed tax will hit UK tourism

10 January 2007 by
Almost 90% of hoteliers say bed tax will hit UK tourism

Almost nine out of 10 hoteliers believe a bed tax would hit the UK tourist trade, according to a study by accountant UHY Hacker Young.

The study, which spoke to financial directors on the boards of 17 hotel groups, found that 88% believed a bed tax would reinforce the perception of the UK as a high-cost destination.

A quarter of respondents, who work for groups including Hilton, InterContinental, Hotel du Vin and Marriott, also said that a bed tax would affect their expansion plans.

David Guest, a partner at UHY Hacker Young, said: "This is another example of a stealth tax on UK business. A bed tax would put the hotel industry under even more pressure following on from increases in the minimum wage and rising business rates. This is at a time when energy costs are also escalating."

The research also revealed that 81 of hoteliers intend to pass on the cost of the proposed bed tax onto their guests.

A UK bed tax, which could add between 5% and 10% to a hotel room rate, was put forward as a suggestion in Sit Michael Lyons' interim report on local government funding.

For more on bed tax go here >>

By Tom Bill

E-mail your comments to Tom Bill](mailto:tom.bill@rbi.co.uk?subject=Almost 90% of hoteliers say bed tax will hit UK tourism) here.

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