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More than 200 hospitality bosses urge Government to scrap unfair holiday tax

February 12, 2026

In a letter to the Chancellor, leading hospitality and leisure CEOs call on the Government to scrap plans for a Visitor Levy in England.

More than 200 signatories from leading accommodation providers including Butlin’s, Haven, Hilton, IHG Hotels & Resorts, Merlin Entertainments, Parkdean Resorts, Travelodge and Whitbread warn that the proposed holiday tax will “hit families hardest, put jobs at risk and drain money from local businesses and communities”.

Bosses warn that “holidays are for relaxing, not taxing”, with the proposed tax meaning Brits would face an extra £100 or more for a two-week holiday in the UK. It could force families to shorten trips, skip travel altogether or head overseas, spending their money elsewhere.

The letter also says there will be significant damage to local communities across England that rely on tourism for survival, as fewer visitors mean fewer local jobs and lower spending at local businesses.

Read the letter in full.

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Allen Simpson, Chief Executive, UKHospitality

Allen Simpson, Chief Executive of UKHospitality, said: “Holidays are for relaxing – not taxing.

“Whether you enjoy a city break, a rural retreat or building sandcastles on your beach holiday, you’re already paying your fair share of tax.

“In fact, it’s one of the highest tax rates for visitors in Europe and the holiday tax will only increase that further.

“We are so lucky to enjoy these wonderful islands and we should be encouraging people to visit every part of our country – not taxing them for doing so.

“The Government needs to scrap the holiday tax.”

The letter, signed by more than 200 hospitality and leisure CEOs, said:

“This ‘Holiday Tax’ will hit families hardest, puts jobs at risk, drain money from local businesses and communities and undermine the Government’s growth agenda. Holidays are for relaxing, not taxing.

“For millions of hardworking families, a UK holiday is their chance to switch off and spend quality time together.

“For many, this tax will make their holiday unaffordable, meaning families will shorten trips, forgo a break altogether, reduce their spending with pubs, restaurants, events, leisure activities and local attractions, or travel overseas – spending their money and creating jobs elsewhere.

“Hospitality and tourism supports 3 million UK jobs, from cleaners and reception staff to chefs and entertainers. This is particularly true for coastal areas, which are at the heart of our national renewal. Fewer visitors mean fewer shifts, fewer jobs and fewer opportunities — particularly in the entry-level and return-to-work roles which the Government is rightly focused on.

“The impact of a Holiday Tax goes well beyond the people who provide accommodation. Fewer visitors mean lower spending at local businesses like restaurants, cafes, pubs, taxi firms and shops. In many places, it is tourist spending which keeps high streets alive, supporting the small businesses that define our communities.

“The UK’s hospitality sector is already under pressure, with rising business rates, energy costs, tax bills and employment costs. It already contributes billions of pounds in tax, through business rates, employment taxes and VAT, which at 20% is double the rate of competitors in France, Italy, Spain or Portugal.

“Do not turn the Great British break into a luxury. Scrap the holiday tax and back the families, workers and the businesses who make England worth visiting.”

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