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Bed tax fear for entire hospitality sector, not just hotels

30 August 2006
Bed tax fear for entire hospitality sector, not just hotels

More than 62% of pubs, bars and restaurants predict a negative impact from a bed tax.

A survey of nearly 300 hospitality venues conducted by purchasing consortium Beacon has shown bed tax would not affect hotels alone.

While most hotels (93%) predicted a downturn in trade, nearly a quarter (21%) of other leisure facilities, such as golf clubs, spas and leisure centres, also forecast a negative impact on business.

In England, 81% of hospitality businesses said a bed tax would be detrimental to the industry, with 82% of hospitality businesses in Wales and 83% in Scotland echoing the sentiments.

The British Hospitality Association estimates that a 5% bed tax would reduce inbound tourism by £220m and domestic tourism by £325m.

John Vinuesa, director of Beacon, said: "The hospitality industry took a downturn after 9/11 and it is feared that an increase in room rates will deter tourists again, as the UK is already considered an expensive destination."

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