HOLIDAY bosses have told the Chancellor that getaways are for “relaxing, not taxing” amid fears staycations could rocket by an extra £100 or more.
Two hundred bosses from firms such as Butlin’s, Haven and Parkdean Resorts have written to Rachel Reeves, blasting the proposed “holiday tax”.
The campaign comes amid concerns £10 per night could be added per night away for a family of five.
Shadow Business Secretary Andrew Griffith said: “We’ve a one-trick, miserablist, tax raising government.
“They’ll tax you more if you drive your car, get on a plane and now if you stay in a bed on holiday.”
Ms Reeves has been told it could lead to shorter trips, abandoned travel plans or holidaymakers going abroad.
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The so-called holiday tax is set to hit UK residents as well as foreign visitors.
Anyone staying overnight in accommodation such as a hotel, B&B, campsite or holiday home could have to pay.
The move will also hurt families in the pocket even when staying on a Sun £9.50 holiday. The industry fears the fee could be as high as £2 per person per night — £10 for a family of five.
Costs shoot up
A family of four on a two-week holiday could see their costs shoot up by £112.
Allen Simpson, boss of UKHospitality, said: “Holidays are for relaxing — not taxing. Whether enjoying a city break, rural retreat or beach holiday, you’re already paying your tax fair share.
“It’s one of the highest tax rates for visitors in Europe and the holiday tax will only increase that further.”
The government is consulting on plans to bring in the “visitor levy” in England.
Several European destinations charge a tourist tax, including Venice and Rome.
But the UK hospitality sector as a whole is already under intense pressure as it grapples with hiked business rates, energy bills and employment costs.
Bosses point out that the VAT rate already stands at 20 per cent, which is double the rate of competitor rivals such as France, Italy, Spain and Portugal.
Fewer visitors means fewer shifts, fewer jobs and fewer opportunities
Letter from accommodation providers
Merlin Entertainments, which has accommodation at its theme parks such as Alton Towers and Legoland, is also a signatory to the letter.
Hilton, Holiday Inn and Travelodge have also given their support.
The accommodation providers also warn that spending in nearby pubs, restaurants and local attractions will decrease — hitting high streets and many other small businesses.
The letter says: “Hospitality and tourism supports three million UK jobs, from cleaners and reception staff to chefs and entertainers.
“Fewer visitors means fewer shifts, fewer jobs and fewer opportunities — particularly in the entry-level and return-to-work roles which the government is focused on.”
The government plans to give mayoralties in England the power to bring in the visitor levies.
A government spokesman said: “Tourists travel from near and far to visit England’s brilliant cities and regions.
“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investment in the economy.
“We expect any new charges to be modest and in line with other countries, and it is for mayors to consider the right level for their area.”
