In this newsletter: “Reeves blocks Mayors’ plan for taxes on tourists” – Sunday Times Meeting…
Tourism Alliance update 5th December 2024
In this newsletter:
- New regulations to delay EES implementation laid
- Sunday Times comment piece in support of tourism taxes
- Meeting with Blake Stephenson MP
New regulations to delay EES implementation laid
EU law states that the new Entry-Exit Scheme (EES) is to be implemented during Q4 2024. A delay has been on the cards for a while and the Commission has now published a derogation which provides a new timeframe for its implementation and gives Member States the scope to introduce EES in a phased way: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2024%3A0567%3AFIN.
The main bullets are as follows:
- A 6-month transition or “progressive” period during which member states can choose to introduce the rules in a phased way. Member States can also choose to implement 100%, if ready.
- Beginning with a minimum of 10% checks with full checks necessary by the end of the progressive period.
- Operating biometrics at least at 50% of ports by 90 days into the period.
- Manual stamping continues throughout.
- In exceptional delay circumstances, Member States can remove biometric checks, partially or fully. This will be possible for up to 60 days AFTER the end of the progressive period. Extendable by 60 days more in the event that not more than 80% of registered files in the period have biometric data.
Note, there is no confirmed start date; this will be decided upon once the Regulation has been approved and adopted by Member States. This Regulation needs to go through the normal co-decision process but it is likely that there will be significant political pressure to get this through quickly. The EES website currently says it will be implemented in 2025, so they’re clearly hoping for closer to 3-6 months rather than the standard 12 month+ process. But, even with the most ambitious timeline, the progressive period will likely go to late 2025 at the earliest.
Sunday Times comment piece in support of tourism taxes
You may have read the comment piece by Liz Edwards, Assistant Travel Editor, in the Sunday Times last weekend. If you missed it you can find it behind the paywall here.
She advocates for additional taxes on tourists, mostly, it seems as a demonstration of social politeness:
“As tourists we are guests in other people’s homes — if not their actual living rooms then their beaches, their high streets, their parks. We use their roads and their public loos. Of course it’s our responsibility to treat their homes with respect. But it’s also good manners to contribute, especially if so many of us visit so frequently it puts a strain on our hosts’ finances.”
She goes on to say that tourist taxes are “nothing new” pointing to, for instance, the Balearics.
We have written a letter to the Editor to provide some important context in this debate in which we say, in part:
“She mentions the Balearics which levy a tourism tax of €1-4 per person per night, but do so on top of a sales tax of just 10%. In Berlin while the Tourism Tax is 5%, their sales tax on accommodation is just 7%. In Las Vegas, New York, Dubai, Greece, or Turkey, the overall rate of tourism tax plus sales tax is lower than our standalone 20% VAT rate. Our visitors already pay their way, and then some.
“This point also needs to be viewed in the context of our international competitiveness. The World Economic Forum ranks the UK as 113th out of 119 countries for the price competitiveness of our tourism offer.”
Meeting with Blake Stephenson MP
Richard was pleased to meet Blake Stephenson MP (Cons, Mid Bedfordshire) this week. Blake is keen to place tourism in Bedfordshire at the core of his campaigning activity as a new MP. Indeed, he sponsored a Westminster Hall debate on this topic last week.
There is an especial interest in the future of tourism in Bedfordshire with the possibility of the Universal UK Project near Bedford which he, we, and the Government are keen to get over the line.
We have agreed with Blake to host a tourism industry roundtable dinner in Bedfordshire early in the new year; something which we intend to replicate in other parts of the country, as we did before the election this year with candidates. More info on those events to follow.