Visiting the United Kingdom may soon become more expensive as several cities—including London and Manchester—move closer to implementing a nightly tourism tax on overnight stays. According to the government, the new tax would apply to hotels, holiday rentals, B&Bs, and guesthouses.
Officials note that the proposal aligns the UK with other major destinations such as New York, Paris, and Milan, where overnight visitor taxes are already standard. Local governments intend to reinvest the revenue into infrastructure improvements, transportation, and beautification of high-traffic tourist areas.
A 2020 analysis suggested the tax could be charged as a percentage of the hotel bill, a flat fee, or another calculated method. The goal is to fund community needs and strengthen tourism-related services.
London Mayor Sadiq Khan voiced support, stating that the added revenue would further boost London’s economy and enhance its standing as a global destination. Greater Manchester Mayor Andy Burnham also emphasized the benefits, noting that the tax will support sustainable growth and help maintain essential public services for visitors.
The proposal is currently in a consultation phase set to conclude on February 18, 2026. The UK is not alone—Japan plans to raise Kyoto’s accommodation tax in 2026, and Venice continues to enforce both overnight and day-trip fees to manage overtourism.
