The director of Butlin’s Minehead has criticized the UK government’s proposal to introduce a tourism tax, warning it will burden working families and damage local economies.
The Overnight Visitor Levy, announced in the King’s Speech on May 13, would empower local authorities to impose a charge on overnight stays in hotels, bed and breakfasts, guest houses, and holiday lets. UKHospitality has condemned the policy as “wildly unpopular,” estimating it could increase the cost of a two-week family holiday by around £100.
Craig Goodwin, director of Butlin’s Minehead resort in Somerset, expressed disappointment at the government’s decision to move forward with the tax despite widespread concerns. He emphasized the importance of affordable domestic holidays, saying, “The government stated that holidays should never be too costly for families, yet this new tax contradicts that promise and risks pricing working families out of taking breaks.”
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Goodwin highlighted tourism’s vital role for Minehead and neighboring businesses, noting that holidays boost local employment and investment year-round. Citing UKHospitality polling, he said 73% of people would reduce or cut back on holidays in England if additional costs were introduced, while 78% fear the negative impact decreased tourism would have on their local economies.
Opposing these views, Helen Godwin, West of England Combined Authority (WECA) mayor and Labour Party politician, supports the levy. She pointed to tourism’s record £2.7 billion contribution to the region’s economy and described the tax as a tool to enhance local control and investment. “Residents and visitors alike appreciate our unique culture, people, and nature,” Godwin said. “The funds raised could improve transport and support businesses and workers in the tourism sector.”
A government spokesperson responded to the backlash by affirming the benefits of the levy, stating: “Tourists from near and far help fuel growth in England’s cities and regions. By granting mayors these powers, we enable local areas to invest in their communities. Any charges are expected to be modest and comparable to those in other countries, with local leaders deciding the appropriate level.”