London Considers Tourist Tax to Boost Hospitality Industry

The UK capital may soon join other major European cities in implementing a tourist tax, with officials estimating that a 5% levy on overnight stays could generate €285 million annually.

During a recent Mayor’s Question Time, London Mayor Sadiq Khan voiced his support for the initiative, arguing that tourists are generally willing to pay extra in other destinations like Barcelona, Paris, and Berlin.

Cities across Europe have successfully implemented tourist levies to fund public infrastructure, transport, and cultural preservation. For instance, Barcelona’s tourist tax generates up to €100 million annually, while Paris collects millions from hotel surcharges to enhance urban development projects.

If introduced, London’s tourist tax could provide a financial boost for the hospitality sector, ensuring sustainable tourism while maintaining public services and historic sites. However, some critics warn that additional fees could deter visitors in the long run, affecting tourism revenues.

The proposal is still under review, with discussions expected to continue in the coming months.