North Cornwall MP says tourism tax could work if planned carefully
A nationwide consultation is running until 18th February
A Cornwall MP is saying a tourism tax for the county does have potential - if done right.
It is as Cornwall’s tourism industry may see major changes as part of a new government proposal that could introduce a tourism tax on overnight stays in paid accommodations.
The plan, currently under review, would give local authorities, including Cornwall Council, the option to apply a visitor levy.
Under the scheme, funds raised would be reinvested in local projects like transport upgrades, cultural programmes and maintaining public spaces.
Ben Maguire, MP for North Cornwall, said: "I think any proposal of a tourism tax needs to be worked out really, really closely and collaboratively with hospitality and tourism businesses in Cornwall."
He explained that local businesses were already struggling with increasing minimum wages, VAT, National Insurance payments and electricity bills.
"All of those costs has created a perfect storm for our hospitality hospitality sector and I would be extremely concerned to just introduce some kind of tourism tax without proper consultation, without proper form and without taking that decision in partnership with those businesses and in agreement with those businesses.
"You do you see tourism taxes working in some countries abroad, places like Portugal and Spain, but it would have to be done in very close coordination and agreement with our great hospitality businesses, who are already really struggling right now."
The government argues the tax is critical for supporting local infrastructure and services, which are essential for sustaining Cornwall as a tourist destination.
The topic has reignited debates among leaders in the region, with many in Cornwall's tourism sector expressing concerns over whether a tax might deter visitors.
The levy, if introduced, would align Cornwall with other regions like Scotland and Wales, where similar taxes are being rolled out. Critics of the proposal, however, point to the risks of harming Cornwall’s tourism economy, which is a key driver in the area.
"I think, crucially, if there ever was such a tax in place, we'd have to make sure that the proceeds were ring-fenced for facilities like toilets, showers, changing facilities to really increase that visitor experience in Cornwall, not just sending it into the general pot for general expenditure", Mr Maguire added.
"So, I think there's a lot of detail, a lot of discussion and crucially, a lot of agreement that needs to be found with the hospitality businesses."
According to the Budget 2025 document, the scheme is part of a wider fiscal devolution effort, allowing local councils and mayors more control over economic resources.