News: "Tourist tax" could raise £7m a year in South Yorkshire
The mayor of South Yorkshire will be able to invest in transport, infrastructure, and the visitor economy through a new levy on overnight stays.
The fee would apply to visitors’ overnight trips, and it would be up to mayors and other local leaders to introduce a modest charge if it’s right for their area.
Any new levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses.
Money raised could then help fund local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors – without needing approval from central government. Research also shows that reasonable fees have minimal impact on visitor numbers.
Many cities around the world charge tourists a small fee when they visit, including New York, Paris and Milan.
The announcement is the latest step forward in the government’s mission to devolve power and give those who know their areas best control over how money is spent in their communities.
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Secretary of State for Housing, Communities and Local Government Steve Reed said: "Tourists travel from near and far to visit England’s brilliant cities and regions.
"We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come."
Businesses, communities and others with an interest in the measure can have their say on how it should work, with a consultation running for 12 weeks.
South Yorkshire’s Mayor, Oliver Coppard, said that he welcomed the new powers to introduce a Visitor Levy. He said: "Even a small charge on hotel rooms could raise up to £7m every year for South Yorkshire, money we can reinvest directly into our local events and services to make our region an even better place to visit."
An estimated 36.3 million tourism visits were made to South Yorkshire in 2024 but its overnight holiday and leisure visits market is not as well developed as other destinations in the UK.
A key aim of the South Yorkshire Local Visitor Economy Partnership (SYLVEP) is to develop a stronger visitor product with more compelling reasons for people to come (and to stay longer in the area).
Images: Courtyard by Marriott
The fee would apply to visitors’ overnight trips, and it would be up to mayors and other local leaders to introduce a modest charge if it’s right for their area.
Any new levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses.
Money raised could then help fund local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors – without needing approval from central government. Research also shows that reasonable fees have minimal impact on visitor numbers.
Many cities around the world charge tourists a small fee when they visit, including New York, Paris and Milan.
The announcement is the latest step forward in the government’s mission to devolve power and give those who know their areas best control over how money is spent in their communities.
Advertisement
Secretary of State for Housing, Communities and Local Government Steve Reed said: "Tourists travel from near and far to visit England’s brilliant cities and regions.
"We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come."
Businesses, communities and others with an interest in the measure can have their say on how it should work, with a consultation running for 12 weeks.
South Yorkshire’s Mayor, Oliver Coppard, said that he welcomed the new powers to introduce a Visitor Levy. He said: "Even a small charge on hotel rooms could raise up to £7m every year for South Yorkshire, money we can reinvest directly into our local events and services to make our region an even better place to visit."
An estimated 36.3 million tourism visits were made to South Yorkshire in 2024 but its overnight holiday and leisure visits market is not as well developed as other destinations in the UK.
A key aim of the South Yorkshire Local Visitor Economy Partnership (SYLVEP) is to develop a stronger visitor product with more compelling reasons for people to come (and to stay longer in the area).
Images: Courtyard by Marriott
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