Government plans advance for overnight visitor levy in West of England
Levy aims to support local improvement initiatives through tourism revenue
Plans for an Overnight Visitor Levy, often referred to as a 'tourist tax,' in the West of England have advanced following a national consultation. Under new government plans, regional Mayors will gain the authority to introduce and set this levy, which will be charged as a percentage of accommodation costs, ensuring a proportionate approach.
Mayor Helen Godwin highlighted the significance of the region's tourism and visitor economy sectors, stating, "Tourism and visitor economy sectors - including businesses across the hotel, hospitality, cultural and creative industries - are part of what makes our part of the world so special." Despite recent challenges, she assured that "nothing is happening overnight" as best practices from around the world are reviewed.
Over the coming months, residents and businesses will have opportunities to provide input, especially regarding how the levy proceeds will be allocated. The levy model, well-established across Europe and globally, commonly supports transport and local improvements. Mayor Godwin has also advocated for a short-term lets registration scheme to ensure fairness across the accommodation sector.
As a mayoral authority now at the top tier of devolution, the West of England is poised to benefit from future plans to retain more locally raised income tax for regional spending. Following the Growth Strategy published in September 2025, Mayor Godwin and council leaders have recognized tourism and hospitality as central to the nation's fastest-growing regional economy.
"Things like a visitor levy become feasible when considering the economic growth potential," Mayor Godwin remarked, "The visitor economy is now worth a record £2.7 billion annually – supporting 43,000 jobs in the region." In 2024, international visitors stayed longer and spent more, with 30% spending attributed to food and drink, while 33% went towards retail, reinforcing tourism-supported businesses’ turnover of £3.43 billion that year.
Councillor Kevin Guy from Bath & North East Somerset and Bristol leaders have long backed a small charge on overnight stays to maintain and expand local attractions. Mayor Godwin noted, "The West Country has such an exciting future," referencing developments like the Bristol Zoo Project and Aviva Arena, and potential improvements in local transport and public spaces.
"We should grab the chance to take more control of our future with both hands, because a few quid here and there can add up to some big change."