Michael O'Regan, Lecturer in Tourism & Events at Glasgow Caledonian University, spoke to CGTN Europe about the potential introduction of a tourist tax in London, comparing it to similar measures in cities such as Rome, Barcelona, and Edinburgh. He outlined proposed methods of taxation, possible uses of the revenue, and raised concerns about transparency and the impact on tourism. O'Regan also discussed the hospitality industry’s worries and the potential effects on domestic travel. He suggested that any tax should be introduced gradually, with support for the hospitality sector and clear communication about how the funds would be used.
00:00Michael O'Regan is a lecturer in tourism and events at Glasgow Caledonian University.
00:06London is already very competitive, it has 20 million visitors per year, but it's an outlier.
00:12Other cities across Europe and across the world already have a tourist tax.
00:16So anything that might go and make the tourist and resident experience of London a little bit better, that's good news.
00:24So as you say, there are other cities who do already have a tourist tax.
00:28How might one in England, in London, operate?
00:34Well, they haven't decided yet, but if it's like Rome or Barcelona, it could be a fixed fee per person, per room, per night.
00:42Other cities like here in Scotland and Edinburgh, they're running in a 5% tourist levy.
00:48So it seems from government communication, it seems it's going to be a modest tax.
00:55So if you look at Manchester, they've brought in a tax already, it's only £1 per room, per night.
01:01But of course, hopefully it's modest and it won't go as high as Barcelona, which probably will go up to €8 per person per night in 2029.
01:10So how could it help English cities be more competitive?
01:14Is it just a question of investing that money back into tourism?
01:18I think that's a big question.
01:20There's a lot of issues around accountability and transparency, where exactly this money might go.
01:25If you look at London, figures are pretty spread across.
01:29How much they might earn, from £91 million up to £300 million.
01:33So they're talking about cleaner streets, they're talking about better transport, transport at night, and cultural festivals.
01:40But I think the important thing is that, of course, tourists have to see the benefit, but also local people as well.
01:47There are concerns around it, though, aren't there?
01:49Do you think it does actually risk putting people off coming to these English cities, because they'll have to pay more to stay there?
01:55For London, it's doubtful.
01:59They already have room rates, you know, over, you know, £230, £240 per night.
02:04It's a big bucket list destination, city brick destination, with all the big, you know, attractions, big bend to the British Museum and Library.
02:11But for other destinations, they may see some modest impact, depending on the, I suppose, the level of the tourist library.
02:18But I'm probably more worried about domestic demand.
02:22There's been some concerns raised also by the hospitality industry.
02:25Warning, it could be damaging.
02:27How credible are these concerns, do you think?
02:30I think they are valid, you know, it's a debt by 1,000 cuts, you know, year on year, you know, second quarter to 25, we saw a decline in domestic tourism in England by 18%.
02:41And, you know, they live on very tight margins.
02:45So, this extra cost and bringing in systems to deal with the tourist tax, you know, is going to have some issues and repercussions.
02:53You know, consumer confidence is low.
02:56We're having issues with disposable income across the UK.
03:01So, you know, they are already cutting back.
03:04Our consumers are already cutting back on going out, on travelling, eating out, but also domestic tourism as well.
03:10So, I would be worried about less domestic tourists going to, especially London.
03:15So, what's your verdict?
03:17What do you think about this tourist tax?
03:18Is it the right move for English cities?
03:22I think it is the right move, but we, it has to be kept modest initially.
03:28There has to be some support for the hospitality sector, hotels and other guest houses, etc., to bring in the systems to collect the tax.
03:39And, you know, tourists and residents need to see where this money is going.
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