28/09/2026
⚠️ OVERNIGHT VISITOR LEVY – WHY SHOULD LOCAL BUSINESSES BE CONCERNED?
If you run a B&B, guesthouse, hotel, holiday let, café, restaurant, pub, shop, gallery, attraction or other visitor-facing business, the Government’s proposed Overnight Visitor Levy (OVL) is something you may want to understand and have a view on.
The Government has now confirmed plans to give certain Mayoral and Strategic Authorities in England the power to introduce an Overnight Visitor Levy on accommodation.
At first glance, it may sound like a charge aimed at visitors.
But there are some important questions that we believe all businesses within the visitor economy should be asking.
❓ HOW MUCH COULD IT BE?
The levy is proposed as a percentage of the accommodation cost.
One of our concerns is that there does not appear to be a national maximum percentage. The rate would ultimately be determined locally.
So what prevents the percentage being increased in the future?
For small independent accommodation businesses, that uncertainty matters.
❓ WHERE WILL THE MONEY GO?
Another important question is whether the money raised will actually have to be spent on tourism.
The Government's position allows the revenue to be used for wider local priorities.
We believe there needs to be much greater clarity around this.
If accommodation providers are expected to collect an additional charge from guests, should that money not be ring-fenced for tourism, the visitor economy and infrastructure that directly supports visitors?
🇬🇧 AND IT ISN'T JUST FOREIGN VISITORS WHO WILL PAY
A figure cited in recent parliamentary debate suggests that 63% of the revenue could come from British visitors.
That means people taking holidays and short breaks within the UK could be paying an additional charge when they stay overnight.
Many of these people already contribute to local taxation through the communities in which they live.
So is this really a levy on visitors – or is it effectively another tax on people taking holidays in their own country?
🏪 WHAT ABOUT OUR HIGH STREETS?
This is where we believe the debate needs to go beyond accommodation providers.
A visitor staying overnight doesn't just spend money on their accommodation.
They may also:
☕ Have breakfast or lunch
🍽️ Eat in a restaurant
🍺 Visit a pub
🛍️ Shop locally
🎁 Buy gifts
🚶 Visit attractions
☕ Have coffee and cake
🚍 Use local transport
🎟️ Pay for experiences
That spending supports the whole local economy.
If an additional charge is added to accommodation, could some of that money instead be taken away from the very businesses that depend upon visitor spending?
📍 PORLOCK IS A GOOD EXAMPLE
Here in Porlock, we have already seen our local bus service severely reduced – both in the number of services and the length of the season.
That has implications for visitor numbers and footfall on the high street.
Our concern is that we should be looking at ways of encouraging visitors to come, stay longer and spend locally, rather than introducing additional costs that could potentially discourage overnight stays or reduce visitors' discretionary spending.
Accommodation providers and high street businesses are not competing parts of the visitor economy – we depend upon each other.
🤔 SO WHAT DO WE THINK?
We are not opposed to investment in tourism, we actually invest ourselves.
We absolutely support investment in our villages, towns, transport, public facilities, high streets, tourism infrastructure and the things that make visitors want to come and stay.
Our concern is whether an Overnight Visitor Levy is the right mechanism to achieve that.
With:
• No clear national cap on the percentage that could ultimately be charged
• No requirement for all revenue to be spent directly on tourism
• A significant proportion of the money potentially coming from British visitors
• Accommodation businesses having to administer the charge
• Potential implications for visitor spending elsewhere in the local economy
…we believe there are some very important questions that need answering.
📢 WHAT DO YOU THINK - LET YOUR MP KNOW YOUR THOUGHTS
If you're an accommodation provider, retailer, café, restaurant, pub, attraction or other business connected to the visitor economy, what do you think?
Would an Overnight Visitor Levy help or hinder your business and our local economy?
And perhaps most importantly:
Where should any money raised actually be spent?
This isn't just an accommodation issue.
It could affect the whole visitor economy and our high streets.
We believe local businesses should be informed, engaged and given the opportunity to have their say before any decision is made.
