Bath is moving closer to introducing a tourist tax after a significant government announcement that grants new powers to local authorities. Known for its stunning Georgian architecture, historic Roman Baths, and status as a World Heritage Site, Bath is one of the UK’s most popular heritage cities. However, Bath and North East Somerset Council has highlighted the strain that millions of visitors place on the city’s infrastructure and services.
Earlier this year, the council unanimously supported the concept of a tourist tax but lacked the authority to implement it. That changed on November 25 when Local Government Secretary Steve Reed revealed that metro mayors would be empowered to introduce charges on overnight stays if deemed appropriate for their regions. The revenues would be reinvested into transport, infrastructure, and the visitor economy.
Kevin Guy, leader of Bath and North East Somerset Council, expressed support for the move, especially as the city prepares to host its renowned Christmas Market, which attracts tens of thousands of visitors and contributes millions to the regional economy. “The levy will help make tourism work for everyone,” Guy emphasized, acknowledging the pressure tourism places on local resources.
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Bath annually welcomes six million visitors, with more than half staying overnight. The Bath Christmas Market alone attracted approximately 444,000 visitors last year, generating £60.4 million in business turnover and supporting over 500 jobs. Despite these benefits, the influx often leaves the city’s infrastructure stretched thin, particularly during peak events like the Christmas Market, which kicks off this year on November 27.
Guy stressed the importance of balancing visitor experience with community wellbeing, advocating for tools that allow councils to manage tourism effectively while reflecting local priorities. He views the proposed levy as a fair system recognizing both the costs and benefits of tourism, enabling direct reinvestment into services and infrastructure that enhance visitor experiences.
The council plans to develop any tourist tax in consultation with the hospitality sector, which has endured financial challenges since the COVID-19 pandemic. Funds from the tax could support sustainable marketing initiatives, heritage maintenance, transport improvements, upgraded public spaces, and bolster infrastructure impacted by tourism.
This announcement forms part of Labour government policies ahead of the upcoming budget and indicates that the authority to impose tourist taxes will rest with metro mayors. West of England Metro Mayor Helen Godwin highlighted the region’s unique cultural and natural assets and the significance of tourism, which currently contributes £2.7 billion to the local economy. She views the new powers as an endorsement of regional autonomy and a means to support business growth and workers in the sector, including through enhanced transport options.
Steve Reed reinforced the government’s commitment to supporting local economies, stating, “Tourists travel from near and far to visit England’s brilliant cities and regions. We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”