The owner of an iconic B&B in the Cotswolds has slammed the tourist tax as a "hammer blow".
Businesses in some of the UK’s most visited areas are fearful the tourist tax could be a “hammer blow” to the industry and have warned the Government to “tread carefully”.
The owner of a famous Cotswold bed and breakfast and a Lake District tourism director have both spoken to the Press Association about their concerns with the policy.
Caron Cooper runs the Fosse Farmhouse, near Castle Combe in Wiltshire, which has become a magnet for Japanese tourists after becoming the inspiration for a popular TV cartoon.
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The Georgian bed and breakfast is the setting for the Japanese animated series Kinmoza, which has attracted more than five million viewers.
Ms Cooper and her business also featured in an episode of Gordon Ramsay’s show, Uncharted: UK Showdown, in which she cooked alongside the TV chef.
“I’ve had my B&B in the Cotswolds now for 42 years, and tourism is challenging,” Ms Cooper told the Press Association.
“We’ve been through so many different things, and recently it’s been tough with the business rates going up.
“During Covid-19 we had a terrible time, and then it’s one thing after another.
“Just as we felt like we are coming through it and tourism’s back, this is like a hammer blow, really.”
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Gill Haigh is the managing director of Cumbria Tourism, an independent body representing 4,500 members in the tourist industry in the county.
Ms Haigh said tourism supports around 43,000 jobs, amounting to 26 per cent of employment in Cumbria, with 40 million annual visits to the Lake District and 7.25 million visitors staying overnight.
She also remarked on the serious impact of Covid-19 on the sector.
Ms Haigh said: “I understand that it might seem a really easy way to raise money, but we have to understand that England is an outlier in terms of its tourism taxation system.
“Our VAT rate in the tourism sector is 20 per cent. Across Europe, that’s on average, half that rate, 10 per cent.
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“So, we’re already a much more expensive destination, and what we can’t afford is to become more uncompetitive, if you will.
“And what we’ve been calling for, right the way through this, is for any mayor in any area, before making any decision as to whether or not this is a good thing or a bad thing, to undertake an economic and social impact study.
“To understand what some of the, you know, potential benefits, but also the unintended consequences of such a levy would create.”
Ms Cooper, who said she had a lot of Americans visiting in particular, added that she would have preferred a flat rate levy, such as an extra £1 per booking, rather than a percentage of the vacation cost.
“People that are going to five-star hotels and spending £500 a night probably won’t notice another 5 per cent,” she said.
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“But those that are staying at bed and breakfasts and economise, then 5 per cent on top of that is going to be a lot.
“If it was a pound on each booking then I could understand that; they would just be able to afford it.
“Just to add a percentage, I think, no, it’s unfair, and it will hit the poorest the most.”
Ms Haigh urged the Government and mayors to take an “evidence-based approach” to understand what some of the “unintended consequences” of the policy might be.
Ms Cooper said: “The Government need to get in income from wherever they can, and it’s just another way of finding some of the money.
“Tourism is seen as an easy market for the Government to take from.”
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