Bristol Hoteliers Warn New ‘Tourist Tax’ Powers Could Hit £2.7bn Visitor Economy

Published On: September 11th, 2026

Hotel bosses across Bristol have warned that proposed new “tourist tax” powers could damage the city’s £2.7 billion visitor economy, demanding cast-iron guarantees that any new charges will not price out travellers.

The pushback follows the Government’s formal confirmation of the Overnight Visitor Levy Bill, which will grant metro mayors across England the statutory power to levy a percentage-based fee on overnight stays in hotels, B&Bs, and short-term rentals.

Ministers argue the levy will unlock millions in devolved funding for public transport, cultural landmarks, and local high streets. Across the West of England—where tourism supports more than 43,000 jobs—regional leaders have eyed the mechanism as a potential funding stream for late-night transport services and revitalised public spaces.

However, the Bristol Hoteliers Association (BHA), representing 40 major venues and roughly 4,000 rooms across the city, has raised serious concerns over competitiveness, administration, and household costs.

‘Not the Time for Extra Costs’

Pramod Shaw, Deputy Chair of the BHA, stressed that while the hospitality sector welcomes regional investment, businesses cannot absorb further financial shocks after enduring high energy overheads and increased employment costs.

“Bristol does not exist in a vacuum; visitors have choices,” said Shaw. “The UK already applies much higher VAT rates than many competing European destinations. Adding another charge risks making Bristol less competitive compared to neighbouring areas that opt out.”

Industry trade body UKHospitality has echoed those concerns nationally, warning that overnight levies could add between £100 and £120 to the cost of an average family holiday, potentially dissuading budget-conscious domestic travellers.

Demands for a Level Playing Field

If the West of England Combined Authority proceeds with introducing the charge, the BHA insists on three non-negotiable conditions:

Strict Ring-Fencing: Revenue must be legally safeguarded for tourism marketing, destination management, and local visitor transport—not absorbed into council budget deficits.
Fair Parity with Airbnb: Unregulated holiday rentals and short-term lets must face the exact same enforcement and fee structure as traditional, licensed hotels.
No Administrative Burden: Hoteliers must not be turned into “unpaid tax collectors” burdened by costly back-office compliance.

Formal regional consultations are expected to begin ahead of any local implementation, giving residents and business owners a direct vote on whether Bristol introduces the levy.

See the latest What’s on in Bristol at https://directlocalbristol.co.uk/whats-on-bristol/