The Back British Holidays campaign has published new data forecasting that London could see 2.6 million fewer domestic visitors, threatening £765 million in local revenue. The figures are based on national projections and reflect wider challenges facing UK tourism – not the impact of any specific tax.
While the campaign acknowledges that the proposed levy – backed by Mayor Sadiq Khan, borough leaders, and the Centre for London think tank – is being positioned as a way to support the city’s cultural and public services, it warns that any new charge on visitors risks further suppressing an already fragile recovery.
Daniel Atwood, spokesperson for Back British Holidays, said:
“Tourist taxes might seem like a small extra charge – but they could have a big impact.
“Local economies depend on visitor spending, and these taxes risk pushing tourists away or reducing how much they spend.
“It’s the wrong move at the wrong time.”
The Centre for London has called on the government to give the Greater London Authority powers to introduce a tourist tax on overnight stays. However, the proposal has drawn criticism from industry groups including UKHospitality, who warn that introducing additional charges at a time when international visitor numbers remain below pre-pandemic levels, and domestic tourism is already declining, could further damage London’s recovery and competitiveness as a destination.
The Back British Holidays 2025 report predicts a 32% fall in domestic holidays across the UK this year, with a £23.2 billion reduction in visitor spending. London, as a key destination for both UK and overseas tourists, stands to be significantly affected by these broader market shifts.
The campaign is calling on local and national decision-makers to prioritise policies that encourage tourism recovery, including affordability, promotion, and investment in visitor infrastructure – without adding further cost to travellers.
For more information and to access the full report, visit: www.backbritishholidays.co.uk