‘Wrong tax at the wrong time’: English Riviera BID raises concerns over Overnight Visitor Levy

Plans to introduce an Overnight Visitor Levy have prompted opposition from tourism leaders on the English Riviera, who warn that an additional charge on holidaymakers could make Torbay a less competitive and desirable destination.

The Visitor Levy Bill was introduced in the House of Commons on Wednesday, November 4, which marked a significant step towards giving mayors and local leaders the power to introduce a charge on overnight stays.

This would potentially mean that people booking overnight accommodation would need to pay an additional charge on top of their bill, calculated as a percentage of the cost of their stay.

It has been stated that the money raised through the levy will remain in the local area and can be reinvested in improving facilities, public spaces and the overall visitor experience.

For example, improving parks, or upgrading public toilets, enhancing security and supporting destination marketing to attract more visitors.

During the introduction of the bill, it was also stated that low-cost family holidays will be protected, with the levy being calculated as a percentage of the accommodation cost, rather than a flat fee.

However, this bill has not been received well locally.

The English Riviera BID Company (ERBID), an independent, not-for-profit organisation representing local tourism and hospitality businesses and promoting the English Riviera, has raised serious concerns over government plans to give local leaders the power to introduce an Overnight Visitor Levy.

At the centre of these concerns is the warning that an additional charge could negatively impact the English Riviera’s visitor economy, which the area relies heavily on.

Chris Hart, Chair of the English Riviera BID Company, said: “The English Riviera BID Company is opposed to the introduction of an Overnight Visitor Levy across the English Riviera.”

“The English Riviera’s visitor economy supports thousands of businesses and jobs, and we are particularly concerned about the potential impact of a levy on the domestic tourism market, on which we rely heavily.”

He added that the additional charge could put further pressure on an already stretched tourism and hospitality sector.

Chris said: “This is simply the wrong tax at the wrong time.”

“Tourism and hospitality businesses are already facing significant cost pressures, while many families are carefully managing their household budgets.”

“Small and independent businesses form the backbone of the English Riviera’s visitor economy and make a substantial contribution to economic growth and employment.”

“We do not want to see an additional levy putting that contribution at risk.”

Chris also warned that an additional charge could make the English Riviera less attractive to holidaymakers, particularly amid the ongoing cost-of-living crisis, as many households face tighter budgets and have less disposable income to spend on holidays.

He said: “Adding further to the cost of a holiday on the English Riviera risks making us less competitive and could influence where visitors choose to stay.”

Chris also emphasised the importance of considering the potential economic consequences of introducing the overnight levy before moving forward with the proposal.

He added: “Before any levy is considered, there must be a full and independent economic impact assessment examining the implications for visitor demand, businesses, jobs, investment, and the wider tourism supply chain.”

Torbay MP Steve Darling also shared his concerns on the proposed levy at the Annual General Meeting of the South Devon Accommodation Group, where more than 70 local independent hoteliers were present, emphasising that Torbay’s businesses need support with rising energy bills and high National Insurance contributions, not further costs.

He also highlighted the importance of holding the government to account over the proposals, stressing that, if introduced, the money raised in Torbay must stay in Torbay.