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one tourist tax A new report has found that the London project could generate more than £350 million for the capital.
British government announced Last November, the British mayor New powers will be given to impose a visitor tax on overnight stays.
a new analysis central london Forward (CLF), a partnership of 12 London boroughs that aims to drive sustainable growth, predicts that the overnight levy could raise more than £350 million a year for London.
The report’s analysis is based on the assumption that a three percent fee is charged on top of the room cost.
When announcing the devolution of tourism tax powers last year, the Mayor of London Sadiq Khansaying it was “good news.”
“The additional funding will directly support London’s economy and help cement our reputation as a global tourist and business destination,” he said.
The government is still consulting on the design of the levy, so London is awaiting the mayor’s response before deciding how to roll out the new tax.
It has yet to be decided how the money raised by the tourist tax will be divided between local authorities and city halls.
However, some local authorities are already trying to keep some of the revenue within their boroughs to help relieve pressure on tourism, particularly in parts of central London where tourist concentrations are highest.
CLF represents a large proportion of central London boroughs including the City of London, Westminster, Southwark, Tower Hamlets and more.
The group said the Central Administrative Region would play a significant role in generating revenue from the tourism tax, with the Central Administrative Region alone expected to raise £275m.
However, it claims the boroughs do not have any dedicated funding to deal with pressures on London’s visitor economy.
It added that 71% of London’s hotel rooms and 67% of short-term lettings are located in its 12 boroughs and would therefore bear the majority of council costs.
CLF said local authorities are calling on boroughs to retain at least 50% of tax revenue to help cope with the impact of tourism.
The organization explains that while tourism brings economic benefits, overtourism can increase the cost of public services and infrastructure maintenance, straining local council budgets while not being compensated.
Councilor Adam Hug, leader of Westminster City Council and chairman of CLF, said central London boroughs play a “vital role” in growing the visitor economy.
“We work hard to keep our streets clean, well-maintained and safe, we invest in new public realm projects, from the regeneration of Regent Street to upgraded public toilets in my borough, and we work with businesses to give them the support they need to thrive.
“It’s not right that many of the services currently provided to visitors are funded by our local residents,” he said. “The government should legislate to ensure that at least 50% of the overnight tax revenue is retained by London boroughs so we can continue to deliver the services London needs.”
Read more: UK tourist tax – where is it charged and how much does it cost?