Tourism Alliance Weekly Update – 1 May 2026

In this newsletter:
WESTMINSTER & PARLIAMENT
OVERNIGHT VISITOR LEVY
IRAN CRISIS: IMPACT ON THE VISITOR ECONOMY
MARTYN’S LAW: TERRORISM (PROTECTION OF PREMISES) ACT 2025
FORWARD LOOK
MEMBER NEWS
Submit Your News

From Eddy Leviten, Executive Director
In the past week we learned that Keir Starmer will be Supreme Leader for all eternity (or until the next election or after the local elections, who knows!). Whatever, happens, a Cabinet reshuffle is likely post 7th May. In the meantime, we keep on with lobbying on our core issues at national and regional level.

This week we held a member call on the CMS Select Committee inquiry; thanks to members who took part and/or sent in comments to the draft circulated. Next draft will be sent out before the weekend.

In this week’s newsletter we also note the Northern Growth Strategy and the impact on the visitor economy as well the implementation of the OVL. One to watch!

Next week is the TA Board meeting where we will review plans for future events and for nominations for the Advisory Council as some terms of office end soon. More to follow. But please note that nominations and voting is only available to paid up Members!

Eddy

WESTMINSTER & PARLIAMENT

OVL: Government Confirms No Economic Modelling Undertaken
A cluster of nine Written Parliamentary Answers tabled by Jack Rankin MP (Conservative, Windsor) and answered by Dan Tomlinson MP (Exchequer Secretary) this week has produced the most significant parliamentary record yet on the Overnight Visitor Levy (OVL). Together, the answers confirm that the Government has introduced OVL enabling powers without modelling their economic impact across any of the following dimensions:

Employment in the hospitality and tourism sector

Regional growth

Tax receipts -VAT, income tax and NICs associated with overnight stays

Jobs, GDP, sectoral investment or net tax benefit

Tourism demand: nights stayed, visits, accommodation spend or tourism spend

High street footfall, empty shops or social mobility

Compatibility with the Government’s own 50 million international visitor target by 2030

All nine answers are deflective, pointing to the consultation process and stating that “the precise design and scope of the power is still under development.” The one piece of evidence cited across all answers -that international and domestic schemes at modest rates have had minimal impact on visitor numbers -does not address any of the wider economic dimensions asked about. Crucially, one answer (WA 127979) confirmed that the Government did consider international VAT comparisons before launching the consultation, yet pressed ahead regardless, making the absence of all other modelling even more striking.

Separately, Alison McGovern MP (Minister for Housing and Planning, MHCLG) confirmed in WA 127979 that VAT comparisons were reviewed ahead of the consultation, but no conclusions from that review are shared in the answer.

The TA regards this parliamentary record as essential evidence for the CMS Committee tourism inquiry (deadline 18 May) and will draw on it directly in our submission.

CMS Committee: Two Active Tourism Inquiries

The CMS Committee is currently running two separate inquiries of direct relevance to the visitor economy:

Tourism industry inquiry -launched April 2026; written evidence deadline 18 May 2026. Explicitly covers the OVL, the 50 million visitor ambition, rising costs, and DCMS/VisitBritain effectiveness. Full terms at committees.parliament.uk

Major events inquiry -Ministerial oral evidence from Stephanie Peacock MP on 22 April. The Minister committed to delivering a National Events Strategy this year, improving cross-Whitehall engagement for events, and working more collaboratively with DBT on the trade and investment case for events.

The focus on repeat events and business events alongside one-off sporting occasions is an issue that UKEVENTS, a TA member, has been actively engaged on throughout the Major Events inquiry.

ACE Evidence Session: OVL Referenced as Arts Funding Mechanism
The CMS Committee’s oral evidence session with Arts Council England on 21 April produced one item of direct TA relevance. Damian Hinds MP asked ACE about the potential for a visitor levy or bed tax as a long-term arts funding mechanism. ACE CEO Darren Henley CBE acknowledged the case for long-term investment from such a tax, noting that “culture is a primary reason visitors come to London.”

The TA notes that tourism is increasingly being positioned in parliamentary debate as a revenue source to fund arts and culture subsidy. This framing -that a visitor levy could offset arts funding shortfalls -is concerning if levy revenue is going to be used to replace existing funding and not ring-fenced and reinvested in the visitor economy itself. The TA will address this directly in its CMS tourism inquiry submission.

English Devolution and Community Empowerment Bill: Lords Stage
The Bill continued its Lords passage on 23 April. The OVL enabling powers for Mayoral Strategic Authorities are carried in this Bill. The Lords debate this week focused on rural affairs competences -with the North East Combined Authority’s £17 million rural economy investment (including rural tourism) cited as an example of combined authority activity. The TA is monitoring the Bill’s progress ahead of the King’s Speech on 13 May.

Case for Change and Next Steps -Published March 2026

The Government published the Northern Growth Strategy: Case for Change in January 2026 and its accompanying Next Steps document on 19 March 2026. Together they set out the Government’s economic plan for the North of England across the Northern Growth Corridor: Liverpool, Manchester, Sheffield, Leeds/Bradford and York. Members with operations, destinations or supply chains in the North should read both documents carefully -and the TA intends to respond to the consultation.

The TA regards this as a vital opportunity to make the case for the visitor economy as a growth driver in the North. The Strategy commits explicitly to amplifying the visitor economy, names the OVL as a Mayoral revenue tool, and opens a formal consultation closing 31 July 2026. The TA will submit a response and invites member input ahead of a draft submission.

What the Strategy Says About the Visitor Economy
The Case for Change explicitly commits to “amplify the visitor economy in the region’s five national parks, cultural assets, and heritage sites” as part of the overall economic plan for the North. This is a direct Government acknowledgement that the visitor economy is a growth lever for northern regions -a position the TA has consistently advocated.

The Next Steps document goes further, stating that “the Overnight Visitor Levy will enable further investment to boost the visitor economy and cultural offer, which already contributes approximately £9 billion per year and supports over 100,000 jobs” in Greater Manchester alone.

Critically, the document also commits to publishing a visitor economy growth plan “in the spring with a focus on driving regional growth, creating opportunity and building community pride around the country” -the clearest signal yet that the Visitor Economy Growth Strategy is imminent and will have a strong regional dimension.

TA Assessment and Response

The TA broadly welcomes the recognition of the visitor economy as a growth driver in the Northern Growth Strategy. However, the documents raise three significant concerns that the TA will press in its consultation response:

OVL as a Mayoral revenue tool: The Strategy explicitly frames the OVL as a mechanism to fund visitor economy and cultural investment. This is the most direct Government statement yet linking the levy to visitor economy reinvestment -but it is a commitment made at the strategic level without any binding ring-fencing mechanism. The TA will press for this commitment to be enshrined in the OVL design, not left to Mayoral discretion.

No impact assessment: Despite committing to grow the northern visitor economy, the documents contain no assessment of how the OVL might affect the £9bn visitor economy it is intended to fund. This is consistent with the pattern of nine Treasury WAs this week (see Section 3) -the Government is simultaneously growing the visitor economy and taxing it without modelling the net effect.

Consultation deadline -31 July 2026: The Government is inviting views on the Strategy’s next phase across connectivity, regeneration, business investment, skills and culture. The invitation for views closes 31 July. The TA will submit a response ensuring the visitor economy -particularly accommodation, attractions, hospitality and events -is fully represented in the northern growth agenda.

Members in the North -and members whose businesses attract visitors to northern destinations -are encouraged to share evidence of the visitor economy’s contribution and the impact of the OVL and other cost pressures on their operations. Please contact the TA to contribute to our consultation response. Both documents are available at gov.uk -Northern Growth Strategy.

OVERNIGHT VISITOR LEVY
The English overnight visitor levy: where things stand
The English Devolution and Community Empowerment Act received Royal Assent on 29 April 2026, marking a significant milestone for the visitor levy in England, although not the final one. The Act does not directly give mayors the power to charge an overnight levy. Instead, it places a legal duty on the Secretary of State to produce regulations within one year that will enable Established Mayoral Strategic Authorities (EMSAs) to introduce a levy on overnight accommodation stays. Those regulations must be passed by affirmative resolution in both Houses of Parliament, meaning further parliamentary scrutiny lies ahead.

The seven EMSAs currently in scope are Greater London, Greater Manchester, West Midlands, West Yorkshire, Liverpool City Region, South Yorkshire and the North East, all areas with a directly elected mayor that have met the additional governance requirements for Established status. Whether the power will be extended to Foundation Strategic Authorities, which cover areas without a mayor, remains unresolved: the government’s consultation (November 2025 to February 2026) asked the question but the Act itself is silent on it. The LGA has called for FSA inclusion, and this is likely to be a contested issue as the regulations are drafted.

It is worth noting that the list of EMSAs eligible for the levy is not fixed. Several newer Mayoral Strategic Authorities, including Greater Lincolnshire and York and North Yorkshire, both of which elected mayors in 2025, are expected to become eligible to apply for Established status from late 2026 onwards. As more areas achieve that designation, they would fall within scope of the levy framework once the regulations are in place. The picture is therefore likely to look considerably broader by the time any English city actually launches a scheme.

For tourism businesses, the practical upshot is that no English overnight levy can be charged before the regulations are in place and, once they are, individual mayors must still run their own public consultation and set up a collection framework before any scheme can launch. The realistic earliest date for a live levy in any English city remains 2027, with 2028 more probable for most areas. Edinburgh’s 5% levy launches on 24 July 2026, and Wales can begin charging from April 2027, meaning England will be the last of the three nations to act.

The Tourism Alliance will be monitoring the regulations process closely and submitting evidence to the Culture, Media and Sport Committee’s tourism inquiry, which is examining the levy alongside broader questions of UK competitiveness and cost pressures on the sector, ahead of the 18 May deadline.

Parliamentary Record: Nine Questions, No Modelling
The full picture of the Rankin WA cluster (127969–127977) is set out in Section 1 above. For members tracking the OVL closely, the TA summarises the Government’s position as follows:

OVL powers are enabling only -Mayors decide whether and how to implement

The consultation closed 18 February; a Government response will be published “in due course”

No impact assessment has been confirmed on employment, GDP, tourism demand, tax receipts, high street footfall or the 50 million visitor target

International VAT comparisons were considered before the consultation but conclusions are not shared

The Government’s sole cited evidence -that modest rates have minimal impact on visitor numbers -does not address the wider economic dimensions

The TA’s position remains clear: any OVL must be subject to a full, independent economic impact assessment; revenue must be ring-fenced and reinvested in the visitor economy; the design must be consistent and proportionate within a national framework; and implementation must not proceed without a Visitor Economy Growth Strategy in place against which to assess its impact.

IRAN CRISIS: IMPACT ON THE VISITOR ECONOMY
TA Wave 3 Member Poll: Summer Now at Risk
The TA’s third wave of member polling on the Iran conflict, conducted in April 2026, shows conditions remain critical despite the ceasefire announced on 7 April:

92% of respondents are very or somewhat concerned about the impact on their business

100% say their summer peak season (June–August 2026) is at risk -every single respondent

42% say the impact has worsened since the previous wave

0% find the Government response adequate

83% report the ceasefire has had no visible effect on their business

83% expect conditions to remain fragile and uncertain through summer; no one expects recovery

The financial impact rating stands at 2.92 out of 5 -easing slightly from the April peak of 3.27 but well above the March baseline of 2.38. The most widely cited impacts are weakening forward bookings and rising fuel and transport costs. Members report:

“Sales are 30–43% down on last year.” — Tourism attraction operator

“For the first four months of the year our fixed costs have exceeded our income. This is having a major impact on our cashflow.” — Accommodation and retail operator

“Cancellations are driven by fear of not being able to buy fuel to get home. Guests are being offered discounts to absorb the additional fuel costs.” —

Accommodation sector

Members have identified nine Government priorities: a proactive “UK is open” campaign; clear FCDO travel guidance that does not deter inbound visitors; VisitBritain promotional spend targeting recovering markets; direct financial support for affected businesses; visa access for key source markets (Middle East, South/Southeast Asia); protecting airlift and Gulf hub connectivity; regular DCMS/DBT engagement; insurance industry engagement on cancellation claims; and energy supplier engagement on fuel cost mitigation.

The TA is continuing engagement with DCMS and DBT and will escalate to Secretary of State level as member polling indicates. Members are urged to document business impacts and share data with the TA.

MARTYN’S LAW: TERRORISM (PROTECTION OF PREMISES) ACT 2025

Implementation Underway
The Terrorism (Protection of Premises) Act 2025 (Martyn’s Law) received Royal Assent in 2025, introducing mandatory security requirements for venues and events above certain capacity thresholds. The Act operates on a two-tier basis:

Standard Tier -premises with a capacity of 100–799 persons: basic security procedures and staff training requirements

Enhanced Tier -premises with a capacity of 800 or more persons: more detailed security plans, risk assessments and public protection procedures

Compliance and enforcement will be overseen by the Security Industry Authority (SIA). A transition period will apply before requirements become fully enforceable; implementation guidance and compliance dates will be published by the SIA and the Home Office.

The Act is directly relevant to TA members across accommodation, attractions, venues, events and hospitality. Members operating venues above the relevant thresholds should review their security arrangements now and begin the process of assessing compliance requirements ahead of the transition period. Full guidance is available at gov.uk -Terrorism (Protection of Premises) Act 2025.

FORWARD LOOK

Event / Item

Tourism & TA Relevance -7 May

Local elections, England

Results may indicate political direction for OVL adoption by Mayoral authorities – 9 May

TA CMS inquiry input deadline (internal)

Members wishing to contribute evidence to the TA’s submission should contact us by this date -13 May

State Opening / King’s Speech

TA monitoring for OVL enabling measures and Visitor Economy Growth Strategy signals  – 18 May

CMS tourism inquiry -submissions deadline – For your own submissions. Early summer

England OVL consultation response (MHCLG)

Government response to February 2026 consultation; TA engaging ahead of publication – Early summer

Visitor Economy Growth Strategy (DCMS)

Expected…as it was last autumn…! – June 2026

National Events Strategy (DCMS)

Ministerial commitment given at CMS Major Events inquiry evidence session 22 April

Mid-2026

VisitBritain revised inbound forecast

Updated forecast in light of Iran conflict and global economic uncertainty – 17 Nov

TA Policy Conference, London

Save the date -more details to follow

MEMBER NEWS

Historic Houses: In Good Hands -Heritage Workforce Report
Historic Houses published its new workforce report, In Good Hands: Understanding Careers in the Heritage Sector, on 19 April 2026. The research, drawn from staff and employers across Historic Houses member properties, finds the independent heritage sector inspires extraordinary loyalty:

93% would recommend a career in heritage

87% describe themselves as quite or very satisfied in their work

83% expect to remain in the sector in the future

Two thirds of recruiters report difficulty hiring staff, with particular shortages in skilled craftspeople

Historic Houses members collectively support over 12,000 full time equivalent jobs and generate over £1 billion in economic benefit, many in rural communities where a historic house is often the most significant local employer.

The report launches Work In A Castle (workinacastle.com) -a free careers platform open to all, developed to address recruitment challenges and raise the profile of heritage as a career. Historic Houses is a TA member.