Plans by the Labour government to allow mayors to introduce visitor charges for overnight stays could significantly raise the cost of budget holidays in the UK. The tax, not yet approved, would be a flat rate of £2 per person per night or a percentage of accommodation cost.
Haven CEO Simon Palethorpe gave an example: a four-day holiday for a family of four could rise from £49 to £80 — a 65% increase. Butlins and Haven executives warned that in some cases the tax could reach 100% of the package price. For a five-star hotel at £1,000 per night, the tax would be just 1%.
An Oxford Economics report predicts the tax could lead to over 30,000 job losses in the sector. Mayors in up to 10 of England's 14 regions are planning to introduce such charges.