Tourism Alliance Member Update

In this newsletter:

• PARLIAMENTARY AFFAIRS
• OVERNIGHT VISITOR LEVY
• TOURISM COSTS & COMPETITIVENESS
• INDUSTRY INTELLIGENCE

FORWARD LOOK

Waking up most mornings in recent times and hearing the news can often make you wonder whether you are in an alternative reality. Imagine if the Overnight Visitor Levy wasn’t going to happen…my April Fool on LinkedIn got some good responses.

Back to reality!

Thanks to members who responded to the Iran Crisis survey. We will update Ministers and officials to seek action on the core issues flagged.

From Eddy Leviten, Executive Director

PARLIAMENTARY AFFAIRS

Westminster Hall Debate: Proposed Visitor Levy (England) — 25 March 2026
A Westminster Hall debate on the proposed overnight visitor levy (OVL) for England took place on Wednesday 25 March, the final sitting day before the Easter recess. The debate focused specifically on the Government’s consultation proposals to give Mayoral Strategic Authorities in England the power to introduce a levy on overnight accommodation stays.

The Tourism Alliance produced a dedicated briefing for the debate, setting out the industry’s principal concerns. Key arguments advanced included:
• The UK ranks 113th out of 119 countries on the WEF 2024 Travel and Tourism Development Index for price competitiveness, citing high VAT, the absence of VAT-free shopping, rising Air Passenger Duty, and costly visa and ETA requirements.
• Tax on accommodation is already very high, before adding in a levy and the VAT on that levy.
• UK inbound visits in 2024 reached 41.2 million — only 1% above pre-pandemic levels — while Western Europe grew 4% and the global market grew 5%.
• The 2026 business rates revaluation (effective 1 April) has already increased hotel liabilities substantially, compounding the potential burden of any additional levy.
• The ETA fee rises to £20 from 8 April 2026 — up from £10 at launch in 2023 — with no child exemption, unlike the EU’s forthcoming ETIAS scheme and a family of four will pay £80 in ETA fees to visit the UK from April 2026, compared with €40 for ETIAS access to 29 EU countries (children under 18 exempt).

The TA’s position — consistent with our submission to the OVL consultation — is that any levy must be nationally consistent in design, ring-fenced for reinvestment in the local visitor economy, and must not add to an already heavy cumulative cost burden on accommodation providers.

TA Westminster Hall Debate Briefing (25 March 2026): tourismalliance.com — OVL Westminster Hall Briefing
Hansard — Westminster Hall, 25 March 2026: hansard.parliament.uk/commons/2026-03-25

King’s Speech: State Opening on 13 May 2026
It has been confirmed that the next King’s Speech and State Opening of Parliament will take place on Wednesday 13 May 2026. Parliament returns from Easter recess on 13 April, meaning prorogation of the current Session is expected in late April or early May, leaving only a short window of parliamentary business before the new Session begins.

The King’s Speech will set out the Government’s legislative programme for the coming Session and will be the earliest opportunity for the Government to bring forward primary legislation enabling the English overnight visitor levy power, should it choose to do so following the February 2026 consultation. The TA will be monitoring the Speech closely for any tourism, hospitality, visitor economy, or immigration-related legislative intentions.

Any Bills that have not completed all parliamentary stages before prorogation will fall unless formally carried over. Members should be aware that the compressed timetable between recess return (13 April) and prorogation limits opportunities for parliamentary engagement until the new Session opens.

UK Parliament — What’s On: whatson.parliament.uk

Forward Look: MHCLG Oral Questions: Overnight Visitor Levy — 13 April 2026
On the first sitting day after Easter recess, Damian Hinds MP (Conservative, East Hampshire) has tabled an Oral Question to the Ministry of Housing, Communities and Local Government (MHCLG) for the 2.30pm session on 13 April: “What assessment he has made with Cabinet colleagues of the potential impact of the proposed overnight visitor levy on the hospitality sector.”

The question is directed at MHCLG rather than DCMS, reflecting the fact that the English OVL consultation — which closed in February 2026 — was led by MHCLG as the department responsible for mayoral powers and local government finance. The framing “with Cabinet colleagues” is significant, inviting the Minister to address cross-departmental coordination on the levy and its potential impact on the wider visitor economy — an area of concern the TA has consistently raised.

The Minister’s response will be an early post-recess signal of the Government’s thinking following the consultation, and the TA will be monitoring it closely. This follows the Westminster Hall debate on the proposed visitor levy on 25 March (see above), and sits alongside a further question to CMS on tourism sector support tabled by Greg Smith MP for 16 April.

Forward Look: Culture, Media and Sport Questions — 16 April 2026
Following the Easter recess, the first CMS Oral Questions session is scheduled for Thursday 16 April 2026. Greg Smith MP (Conservative, Mid Buckinghamshire) has tabled the following question: “What steps her Department is taking to support the tourism sector.” This provides an opportunity for the Government to set out its current position on the sector, and for the TA to monitor the response for any new policy signals.

Scotland: Visitor Levy (Amendment) Bill Passes Stage 3 — 19 March 2026
The Scottish Parliament completed Stage 3 of the Visitor Levy (Amendment) (Scotland) Bill on 19 March 2026. The Bill amends the Visitor Levy (Scotland) Act 2024, which gave local authorities the discretionary power to charge a levy on overnight accommodation. The amendment to the Bill enables local authorities to charge either a percentage-based levy or fixed amounts, removing the earlier option of a per-person, per-night fixed charge which the sector had flagged as unworkable. This is a major victory for our sector and is due to some excellent work by the STA and members.

The amendment agreed at Stage 3 also allows local authorities to permit accommodation providers to retain a proportion of the levy they collect, to help offset administrative costs. This directly addresses concerns raised by the tourism sector throughout the Bill’s passage that businesses were effectively being required to act as unpaid tax collectors for local authorities.

Other amendments included requirements for reporting on the impact of visitor levies on rural tourism, and provisions preventing multiple overlapping levy schemes applying to the same overnight stay.

Edinburgh’s levy (5% on overnight accommodation) launches on 24 July 2026, with advance bookings from 1 October 2025 subject to the charge. Stirling’s levy (3%) will apply to bookings from January 2027 for stays from 14 June 2027.

Scottish Parliament — Visitor Levy (Amendment) Bill: parliament.scot — Visitor Levy (Amendment) (Scotland) Bill

SPICe briefing — Bill as amended: spice-spotlight.scot — Visitor Levy (Amendment) Bill as amended

VisitScotland — Visitor Levy guidance for businesses: support.visitscotland.org — Visitor Levy guidance

Wales: Cardiff Council Considers Visitor Levy Implementation — 19 March 2026
Cardiff Council’s cabinet met on 19 March 2026 to consider implementing a visitor levy under the Welsh Government’s visitor levy legislation, which became law in 2025. The Economy and Culture Scrutiny Committee considered the proposals on 17 March ahead of the cabinet meeting.

The proposed levy would apply to paid overnight stays of up to 31 nights in hotels, hostels, guesthouses, Airbnbs, campsites, and temporary event accommodation, at the rates set in legislation: £1.30 per person per night for most accommodation types and 75p per person per night for campsites and shared rooms. Children under 18 in campsites or shared rooms, and those in emergency accommodation, would be exempt.

Cardiff estimates the levy would raise approximately £3.5 million per year, with funds administered by the Welsh Revenue Authority and passed to local authorities. A Visitor Levy Partnership Forum would be established to advise on how funds are used and shape Cardiff’s tourism strategy. A Memorandum of Understanding with UKHospitality has been proposed as part of the implementation framework. If approved, Cardiff would be among the first Welsh councils to implement the levy, which cannot take effect before April 2027.

Insider Media — Cardiff visitor levy report: insidermedia.com — Cardiff visitor levy

TOURISM COSTS & COMPETITIVENESS
Business Rates Revaluation Takes Effect — 1 April 2026
The 2026 business rates revaluation came into force on 1 April 2026, alongside the introduction of the new five-multiplier system that replaces the temporary 40% Retail, Hospitality and Leisure (RHL) relief which expired on 31 March. While the new permanently lower RHL multipliers (38.2p for small properties; 43p for standard RHL) provide a degree of structural relief, many hospitality and tourism businesses face significantly higher liabilities due to sharp increases in rateable values — reflecting the post-pandemic recovery in trading performance on which the 2026 valuations are based.

Total UK business rates receipts are forecast to rise by £3.4 billion to £37.1 billion in 2026/27 as the new revaluation cycle takes effect. Hotels and hospitality venues face a particular double burden: the 2023 revaluation used pandemic-depressed April 2021 valuations, and the 2026 revaluation now unwinds this, causing liabilities to rise substantially for many properties even as the broader reform was marketed as sector-friendly.

Properties with rateable values above £500,000 — including many larger hotels — are subject to the new high-value multiplier, set 2.8p above the national standard rate. A transitional relief scheme caps bill increases, but only up to set percentages that compound over the rating cycle. A £4.3 billion support package includes transitional relief and an extension of the Supporting Small Business scheme.

A joint survey by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping, and Hospitality Ulster found that in response to the combined cost pressures taking effect from 1 April (business rates plus the national living wage and national minimum wage increases):

• 64% of businesses surveyed may be forced to cut jobs

• 51% may cancel investment plans

• 42% may reduce trading hours

• 15% (around one in seven venues) could be forced to close

The TA has consistently highlighted the cumulative cost burden on accommodation and hospitality businesses — the combination of business rates revaluation, employment cost increases, APD, ETA fees, and the potential addition of an OVL represents a significant and compounding threat to sector viability and the UK’s inbound competitiveness.

Gov.uk — Business Rates Revaluation 2026: gov.uk — Business rates revaluation 2026

Gov.uk — RHL and High-Value Multipliers: gov.uk — Effects of RHL multipliers and high-value multiplier

UKHospitality — Business rates and the 2026 revaluation: ukhospitality.org.uk — Business rates and the 2026 revaluation

Morning Advertiser — Business rates rise by £3.4bn: morningadvertiser.co.uk — Business rates rise £3.4bn as revaluation takes effect

ETA Fee Rises to £20 from 8 April 2026
The Home Office confirmed on 18 March 2026 that the Electronic Travel Authorisation (ETA) fee will increase from £16 to £20 on 8 April 2026 — a 25% rise and a doubling of the fee since the ETA’s launch at £10 in 2023. The increase follows parliamentary approval of revised fee maxima, with the House of Commons approving the higher ceiling in February and the House of Lords in March 2026.

The ETA is mandatory for the vast majority of visa-exempt travellers, including visitors from the EU, US, Canada, and Australia. It applies to all travellers regardless of age, with no child exemption. A family of four will pay £80 for UK ETA access from 8 April — compared with €40 for access to 29 EU countries under the forthcoming ETIAS scheme (children under 18 exempt).

Standard visitor visa fees also rise on 8 April: the short-stay (up to six months) visa increases from £127 to £135, with equivalent rises across longer-stay and multi-entry categories. A January 2026 IndexBox analysis estimated that the cumulative impact of visa and ETA fee increases could reduce visitor spending by £1.15 billion by 2030.

The TA continues to call for a review of the ETA fee trajectory and the absence of a child exemption, both of which represent a direct competitive disadvantage relative to comparable European destinations.

Home Office — Immigration and nationality fees (updated 18 March 2026): gov.uk — Immigration and nationality fees

VisasNews — UK ETA fee to increase to £20: visasnews.com — UK ETA fee to increase to £20 on April 8, 2026

INDUSTRY INTELLIGENCE
Short-Term Rentals: February 2026 Data (VisitBritain / Lighthouse)
VisitBritain’s monthly short-term rentals (STR) report, using data from Lighthouse up to February 2026, shows continued supply growth alongside broadly stable demand. Key findings:

Supply grew 5% year-on-year in February 2026, with growth seen across all UK regions. The East Midlands and Scotland recorded the strongest supply increases.

Nights reserved fell and occupancy remained level compared with February 2025, suggesting the market is absorbing new supply without a significant demand shift.

Average daily rates continued to see steep year-on-year declines, however average revenues per property reached a new February peak, exceeding both 2025 and 2024 levels for the same month.

Review trends shifted in February, with Europe taking a significantly larger share of reviews month-on-month, and domestic review growth strengthening.

The STR supply growth data is directly relevant to the English OVL consultation, which proposes to include all commercially let short-term accommodation within scope of any levy. The interactive dashboard is updated with February 2026 data.

VisitBritain — Short-Term Rentals Report and Dashboard: visitbritain.org — Short-Term Rentals data and dashboard

Inbound Flight Searches: February 2026 (VisitBritain / ForwardKeys)
VisitBritain’s monthly flight searches report, using ForwardKeys (an Amadeus company) data for February 2026, shows a headline uptick in overall UK demand of +7% year-on-year, but with a notably mixed picture by market that raises competitive concerns. Key findings:

Overall demand (flight searches × travel party size) was up 7% year-on-year in February 2026.

Short-haul markets drove the growth, up 21% in aggregate. Demand from Italy was almost double year-on-year, with double-digit growth also from Spain, Germany, and France.

Long-haul markets were down 5% year-on-year in aggregate. Canada was the only long-haul market to record growth. India and Saudi Arabia saw the largest declines — both high-spend markets the Government has identified as priorities for inbound growth.

The competitive comparison is stark: Ireland saw +20% growth in demand in February 2026, compared with the UK’s +7% overall.

Growth in February was led by searches to Scotland and Wales.

The long-haul decline and the Ireland comparison are particularly significant in the context of the TA’s ongoing price competitiveness arguments. The data lands in the same week as the Westminster Hall OVL debate and the business rates revaluation, providing live evidence that the UK is losing inbound ground even as additional cost burdens are being layered onto the sector.

Note: the ForwardKeys data covers flight searches only and does not capture passengers or bookings made by train or ferry. Market penetration of the data is higher for European and North American markets and lower for Asian markets.

VisitBritain — Flight Searches Report and Dashboard (ForwardKeys / Amadeus): visitbritain.org — Flight Searches Report and Dashboard

FORWARD LOOK

13 April

Parliament returns from Easter recess. House of Commons sits from 2.30pm.

13 April

MHCLG Oral Questions, 2.30pm. Damian Hinds MP (Con, East Hampshire) has tabled: “What assessment he has made with Cabinet colleagues of the potential impact of the proposed overnight visitor levy on the hospitality sector.”

8 April

ETA fee rises to £20. Standard visitor visa rises to £135.

16 April

CMS Oral Questions. Greg Smith MP (Con, Mid Buckinghamshire) has tabled: “What steps her Department is taking to support the tourism sector.”

Late April / early May

Prorogation of the current Session expected ahead of the State Opening.

13 May

King’s Speech and State Opening of Parliament. The TA will be monitoring for tourism, hospitality, and visitor economy legislative intentions in the new Session.

24 July

Edinburgh visitor levy goes live (5% on overnight accommodation).

17 Nov.

Tourism Alliance Policy Conference – London