London may introduce tourist tax

If you’re planning a trip to London anytime soon, there could be a new cost to factor in.

Mayor Sadiq Khan is backing the idea of a tourist tax – something already common in cities like Paris, Barcelona and Venice – and it could bring in around £240 million a year to support local services and the tourism sector.

Tourist tax talk: Could London follow Paris and Barcelona?

Across Europe, tourist taxes have become the norm. Cities like Paris charge visitors up to €16 per night in premium hotels, and Barcelona adds around €4 a night plus a regional fee. The money collected doesn’t disappear into a black hole – it’s often spent on keeping public transport running, maintaining historic landmarks, and upgrading local infrastructure.

If London adopts a similar model – with a suggested 5 per cent fee on overnight stays – officials say it could generate up to €285 million annually. Sadiq Khan has reassured businesses that the money would go straight back into making the city more welcoming for tourists. “It’ll help improve the environment for hotels, Airbnbs, and travellers,” he explained.

Hotel industry pushes back on London tourist tax proposal

Not everyone’s convinced it’s a good move. London already ranks among Europe’s priciest places to stay, and adding another charge could push some tourists to rethink their travel plans. UKHospitality, which represents hotels and restaurants, has warned that the tax could be “extremely damaging” – especially when the recovery from Covid is still fragile.

In fact, London’s projected 41.2 million visitors in 2024 is only a slight rise compared to pre-pandemic numbers. Critics fear that even a small extra charge might put off travellers working with tight budgets.

And London isn’t alone in this debate. Barcelona’s hotel sector has pushed back against constant increases in local levies, calling it a form of “fiscal suffocation”. In Wales, some businesses even shut their doors for the day earlier this year to protest a planned tourist tax.

Tourist tax in London: sensible move or extra burden for travellers?

Let’s face it – mass tourism can put serious pressure on cities. Taxes like these are meant to soften that impact by funding services locals and visitors both rely on. But do they actually change tourist behaviour? That’s still up for debate.

Venice doubled its tax for day-trippers to €10 this year. It brought in extra revenue, yes – but it hasn’t exactly cleared the streets of selfie sticks.

For London, how this idea is presented could be key. If visitors see it as a way to support the city they love exploring, it might go down well. But if it’s just another line on an already expensive hotel bill, it could spark frustration.

One thing’s for sure: if the tax is introduced, it’ll change the way we talk about visiting the UK’s capital – and maybe how we plan our next stay.

Find more UK news