HOSPA
When will enough be enough?
Jane Pendlebury, CEO of HOSPA, examines how hospitality is grappling with mounting costs as prospective tourist tax looms.
A
s anyone working in UK hospitality will attest, this is an industry that thrives on resilience. From global economic shifts to the unprecedented disruption of the pandemic, the sector has learned to adapt. Yet even the most seasoned operators must be wondering if these buffeting headwinds will ever come to an end. This year has already seen rising costs – particularly for staff, food and other services – while the rollback of business rate relief pushes countless businesses to their limits. Now, the likelihood of a nationwide tourist tax has entered the equation. We have already seen its introduction into pockets of the UK, but this is different. With political backing and increased discussion in public discourse, it feels less a matter of if, and more a question of when.
One more burden for a sector under strain The idea of a tourist tax – a levy on overnight stays – is not new, but its re-emergence as a serious policy proposal comes at a critical time. While some see it as a way to raise revenue for local services, those on the ground see a sector on the brink being asked to shoulder more than it can bear. If the tax were used
solely to invest in local tourist attractions – such as maintaining complimentary entry to museums – that would be easier to understand, but there appear to be no guarantees about where the additional revenue will be invested. Costs across hospitality have surged. Wage costs are up, supply chains remain volatile and business rate support continues to fall away. These aren’t theoretical pressures; they are day-to-day realities for hotel managers, restaurateurs and other hospitality operators trying to keep their doors open. Unlike many of our European counterparts, the UK already imposes one of the highest VAT rates on hospitality. A further tax on tourists, layered on top of this, could damage competitiveness – especially when many travellers are becoming more cost-conscious.
Misjudged timing
Hospitality is still rebuilding post-pandemic. International visitor numbers are recovering, but confidence remains fragile. Domestic travel, which proved vital during lockdown, is now under pressure from the cost-of-living crisis. A tourist tax introduced in this context may not only reduce bookings but also reinforce the perception
10
www.hmi-online.com
FGC/
Shutterstock.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37
