Planning a Trip to London? Tourist Tax May Be Coming Soon — Tips to Keep Your Expenses Low
Travellers to London May Soon Pay Tourist Tax
With an estimated 43 million visitors expected in 2025, contributing £33.7 billion to the local economy, London officials are weighing the introduction of a tourist tax — a nightly charge on accommodation aimed at funding city services and infrastructure.
The proposed levy would apply to hotels, hostels, and short-term rentals, with exemptions likely for business travellers. Revenue from the tax could be used to improve public transport, cleanliness, and public spaces. Supporters argue that tourists benefit from these services but do not directly contribute to their upkeep.
Tourist taxes are already common worldwide. Paris charges between €0.65 and €15.60 per night depending on hotel category, Amsterdam imposes a 12.5% lodging tax, and Barcelona collects up to €6.75 per night. In Venice, day visitors pay €5, while overnight stays cost €5–€10. Other examples include Bali (USD 10 one-time fee), Rome (€3–€10 per night), and the Maldives (USD 6 per night in resorts, USD 3 in guesthouses).
Experts note that such levies rarely deter travellers, as modest fees are often accepted as part of visiting major destinations. In most cities, the charge is added to accommodation bills at check-in or check-out.
If approved, tourists could still limit costs through various strategies: choosing accommodation outside high-demand areas, booking directly with hotels for possible perks, using loyalty programs, or opting for inclusive travel packages that bundle taxes into the total price. Longer stays could also reduce the impact, as some cities cap the charge after a set number of nights.
London’s hospitality industry, still recovering from the pandemic, is watching closely to see how the plan develops — and whether the extra fee will affect visitor behaviour in one of the world’s most popular capitals.
