ABTA lodges concerns over proposed overnight visitor levy in England and its impact on travel services

ABTA formally opposed the Government consultation on an overnight visitor levy in England, arguing it would compound existing cost pressures on the sector given that domestic and inbound tourism contributes more than £97 billion annually to England’s economy and that the UK ranks 113th out of 119 countries for price competitiveness in the World Economic Forum index.

What ABTA recommended at a glance

• Require mayors to allocate a proportion of levy revenues specifically to tourism promotion and development rather than general budgets.
• Prefer a flat-rate levy model over a percentage-based charge to reduce administration and complexity.
• Use levy proceeds for visible visitor-focused improvements such as public realm and transport enhancements.

Economic and competitiveness concerns

ABTA highlighted that adding a new charge on overnight stays could erode the UK’s price competitiveness further. The association emphasised that cumulative increases in costs, higher taxes, and more regulatory burden are already making some destinations less attractive compared with international rivals. From a travel logistics perspective, higher accommodation charges often cascade into related sectors — increased airport transfer demand fluctuations, pressure on taxi fares, and altered booking patterns for private transfers and shuttles.

Levy design: percentage vs flat-rate

Local reinvestment and transport improvements

ABTA and sector partners urged that mayors be mandated to spend a share of levy receipts on tourism development. When earmarked for upgrades such as better signage, public realm, or local transport links, funds can boost the visitor experience and support local businesses — including taxi and transfer operators who benefit from improved access and clearer pick-up/drop-off points at airports and city hubs.

Practical impacts on taxi and transfer services

• Fare dynamics: accommodation levies may reduce discretionary travel spend, lowering demand for private transfers or pushing travelers toward cheaper options.
• Operational costs: if local authorities pass administrative costs to services, drivers and operators could face higher license or operator fees.
• Customer behaviour: visitors may adjust arrival times, choose different airports, or book fewer premium services like limousines or private seater transfers.

How operators and local authorities can respond

To manage the risk that levies reduce visitor numbers or shift booking patterns, stakeholders should prioritise transparency and added value. Clear communication about how levy funds improve transport links, reduce congestion at airport terminals, or fund pick-up infrastructure can reassure visitors and operators alike.

• Ring-fence a defined percentage of revenue for transport and visitor services.
• Keep levy collection simple—flat-rate charged at booking or hotel check-in.
• Publish regular reports showing tangible reinvestment outcomes.

At a glance: potential outcomes for travellers and transfers

Introducing a levy without visible reinvestment may discourage overnight stays in higher-taxing areas, reducing demand for airport taxis and private transfers. Conversely, if funds clearly improve local transport and public realm, visitor satisfaction could rise, stabilising demand for higher-end services like Private limousines or multi-seater airport transfers.

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In summary, ABTA’s response underlines the tight balance between generating local revenues and maintaining a competitive destination. A poorly designed overnight visitor levy could push price-sensitive travellers toward cheaper cities or destinations, alter airport transfer demand, and affect taxi and private-hire pricing strategies. A flat-rate model combined with clear reinvestment into transport and visitor services offers a pragmatic way forward: it keeps the exact charge transparent for guests, helps drivers and companies plan fares and seat allocation, and lets travellers know how much extra they’ll pay. For travellers who want to book a car or compare transfer services, platforms that show vehicle details, driver license verification, real fares and booking flexibility reduce uncertainty and help answer the perennial questions of how much, which car, and when to book. LocalsRide’s transparency and convenience align well with these needs, offering an easy way to get the best service at the best price.