Tourism tax trap: The Budget risks pricing you out of Britain’s holiday towns!

Holiday parks, hotels and the small businesses that rely on them are already juggling rising labour costs, tighter regulations and persistent inflation in energy, materials and supply chains.

Visitor numbers are improving, but many operators are still focused on recovery rather than expansion.

When people stay away, local pubs, cafés, activity centres and independent shops feel it immediately. These aren’t abstract businesses on a balance sheet; they’re the places that give regions their character.

A new levy might look like a quick win for local budgets, but the long-term risk is clear: fewer visitors, less investment and communities that slowly lose the vibrancy that made them destinations in the first place.

It sends the strange message that choosing to holiday at home is something to be taxed rather than encouraged, especially when keeping UK tourism thriving benefits both the economy and the environment.

There is a better route. A proper review of VAT on hospitality, for example, would give operators the breathing space to keep prices fair, protect jobs and reinvest in the experiences holidaymakers actually notice.

By contrast, a tourism tax piles pressure on a sector that’s only just finding its feet again and makes Britain less competitive against places that are actively trying to attract visitors, not price them out.

Britain’s tourism industry has always found ways to adapt and innovate, even in tough times.

But if this policy goes ahead,  it is essential that any revenue raised is reinvested directly into improving local facilities, visitor experiences and the infrastructure that keeps destinations alive.

Right now, hospitality businesses are trying to shift from survival to genuine recovery.

The decisions made in the coming months will determine whether much-loved holiday spots can keep welcoming people or whether rising costs and shrinking margins push them into decline.

It’s not too late for government to rethink how best to support a sector that means so much to the country and to the millions who holiday in it every year.

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Carl Castledine is the Founder & CEO, Away Resorts

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