Archive · 23 Nov 2025
London Considers 5% 'Tourist Tax' for Overnight Visitors
London might start charging visitors a 5% tax on their hotel stays to help improve the city's infrastructure and business environment.
Other UK cities and many international ones already have similar taxes.
London Mayor Sadiq Khan supports a 5% 'tourist tax' for overnight visitors
The tax could raise up to £240m annually for London
Other UK cities like Edinburgh and Welsh councils may also implement similar taxes
G7 cities like Paris, Munich, and New York already have overnight lodging taxes
- Who
- London Mayor Sadiq Khan and other civic chiefs
- What
- Proposed a 5% 'tourist tax' for overnight visitors
- When
- The tax could be implemented soon, with Edinburgh starting in July 2025 and Wales in April 2027
- Where
- London, Edinburgh, and Welsh councils
- Why
- To raise funds for infrastructure projects and improve the business environment
Supporters of the Tourist Tax
Opponents of the Tourist Tax
Funding for Infrastructure
Supporters of the Tourist Tax
The tax will raise funds for infrastructure projects and improve the business environment.
Opponents of the Tourist Tax
It may discourage tourism and hurt local businesses.
- Proposed Tax Rate
- 5% of accommodation cost or fixed-rate equivalent
- Estimated Annual Revenue for London
- Up to £240m
- Estimated Overnight Stays in London in 2024
- 89 million
- Edinburgh's Implementation Date
- July 2025
- Wales' Implementation Date
- April 2027