The UK's leading hotel groups have warned the Chancellor that a holiday tax would 'not make good business sense' and hit hotel investment.
A group of 12 hotel bosses, including Accor, IHG Hotels and Resorts, Hilton, Marriott International, Travelodge and Whitbread, wrote to Rachel Reeves MP, the Chancellor, following media speculation that a holiday tax would be introduced at the Budget on November 26.
The letter also highlighted that the increasing tax burden on hospitality businesses has already had an impact on new hotel openings, with the rate of openings declining steadily since the pandemic.
They said a holiday tax, on top of an already high rate of VAT compared to other visitor destinations, would erode an ‘already severely pressured business case’.
Signatories to the letter:
Aiden McAuley, Chief Operating Officer Managed Hotels Europe & North Africa, Premium, Midscale & Economy, Accor
Patrick O’Connell, CEO, B&B Hotels UK Ltd
Richard Hutton, Chief Financial Officer, Clermont Hotel Group
Graeme C. Bateman, Managing Director, Elite Hotels
Karin Sheppard, Managing Director Europe, IHG Hotels and Resorts
Steve Cassidy, Managing Director UK and Ireland, Hilton and President UKHospitality
Scott Harper, COO, Malmaison & Hotel du Vin
Neal Jones, Chief Operating Officer Europe & Africa, OPR EMEA, Global Leader – Design Hotels, Marriott International
Tom Flanagan, Chief Operating Officer, Europe, Leased Hotels, Radisson Hotel Group
Alistair Darby, CEO, Sir Richard Sutton Limited
Jo Boydell, CEO, Travelodge
Dominic Paul, Chief Executive, Whitbread PLC
Read the letter in full.
Click here
UKHospitality has already led the charge against the speculation of a holiday tax.
We have said it would be another significant U-turn by the Government just two months after Sir Chris Bryant MP, then Tourism Minister, told the House of Commons it “had no plans to introduce a tourism tax”.
It follows a letter sent to UKHospitality by James Murray MP, then Exchequer Secretary, where he also said the Government had no plans to introduce such a tax.
Our analysis shows that a holiday tax would hit Brits wanting to holiday in the UK with a further £518m in costs.
