| Current plans to introduce a “Bed Tax” | | | | the BBC, "When you think that VAT on |
| have been roundly criticized by the hotel and tourism | | | | tourist-related activities in this country is 17.5 per |
| industry. The plan is being proposed as part of a | | | | cent, whereas in the rest of Europe it is 8.5 per cent |
| national Government tax review of local government | | | | and in countries like France 5.5 per cent, these |
| funding and would see a 10% tax surcharge being | | | | tourists use services, but they are certainly already |
| levied per night on top of the already existing 17.5% | | | | paying for them." |
| VAT. | | | | Industry news publisher Caterer and Hotelkeeper has |
| The plan follows on from a report last year for the | | | | been joined by the UK hotel big hitter, Travelodge, |
| Association of London Government, which represents | | | | along with the British Hospitality Association (BHA) |
| 32 boroughs, which described the tax as, "an ideal | | | | and the Tourism Alliance (an umbrella group of 45 |
| minor tax in that it relates to a group that imposes | | | | trade associations), to formally lobby against the |
| clear costs on authorities but which presently | | | | plans. Another hotel industry heavyweight, Hilton, |
| contributes nothing directly towards those costs". | | | | spokeswoman said the company strongly supported |
| The current proposals, as they stand, could raise the | | | | the BHA's efforts. |
| cost of a short UK break by up to £100 for | | | | While Travelodge has set up its own online petition, |
| the average family. While the UK is already, | | | | the deputy chief executive of the BHA, Martin |
| throughout Europe, second only to Denmark in the | | | | Couchman, said the organisation encouraged its |
| severity of its taxation levels for tourism, the newly | | | | members to lobby independently, a message which |
| proposed tax would put Britain firmly above the | | | | online UK hotel directory [ Superbreak has taken to |
| Danes making it the highest taxed holiday destination | | | | heart, with its own petition, in an ongoing campaign |
| in the EU, nearly three times the European average. | | | | to bring prices down. |
| The idea which is presently under consideration by Sir | | | | A recent Travelodge survey of 2,000 UK consumers, |
| Michael Lyons, who is tasked to review the plans for | | | | revealed that 85% already believe UK hotels are too |
| future local government financing, however the | | | | expensive, a perception that will only be exacerbated |
| Liberal Democrats warned that implementing such a | | | | by a 10% price hike. Current predictions by the |
| move could be "disastrous" for the entire | | | | tourist industry indicate the impact of the tax could |
| £12bn UK tourism sector. | | | | lead to the possible loss of up to £1.3bn and |
| Liberal Democrat culture spokesman Don Foster told | | | | 32,000 jobs if the tax were to be introduced. |