The director of Butlin’s Minehead resort in Somerset has voiced strong opposition to the government’s proposed Overnight Visitor Levy, a tourism tax set to be introduced following its announcement in the King’s Speech on May 13.
This levy would empower local authorities to charge visitors who stay overnight in accommodations such as hotels, bed and breakfasts, guest houses, and holiday lets. Industry group UKHospitality has labeled the policy as “wildly unpopular” and warns that it could add as much as £100 to the cost of a typical two-week family holiday.
Craig Goodwin, director at Butlin’s Minehead, expressed disappointment with the government’s decision: “It’s disheartening that the government is moving forward with a holiday tax despite clear feedback from businesses, consumers, and the hospitality sector about its negative consequences."
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He emphasized the importance of affordable holidays for working families, stating, “Earlier this year, the government said paying for a family holiday should never be too much to ask, but this new tax contradicts that commitment and will hurt working families.”
Minehead’s local economy heavily relies on domestic tourism, which supports jobs and drives investment year-round. Goodwin referenced polling data from UKHospitality showing that 73% of people would reduce or skip holidays in England if additional costs were imposed, and 78% expressed concern about the economic impact of decreased tourism on their communities. “For towns like ours, these worries are very real,” Goodwin added.
Conversely, Helen Godwin, mayor of Weca and Labour Party politician, supports the levy. “Residents and visitors appreciate the unique culture, nature, and spirit of our region," she said. “Tourism now contributes a record £2.7 billion to the West’s economy and is a cornerstone of our Growth Strategy for the next decade.”
Godwin views the visitor levy as an opportunity: “These new powers show confidence in our region’s ability to shape its future. The funds raised from the levy, which many holidaymakers are accustomed to paying elsewhere, can help support local businesses and workers, including improving transport infrastructure.”
Responding to the criticism, a government spokesperson said, “England’s cities and regions attract tourists from near and far. By giving mayors the power to introduce modest visitor charges aligned with other countries, we enable them to invest in local priorities, driving economic growth and supporting vibrant communities.”