The Confederation of Passenger Transport (CPT) has called for any new “visitor levies” to be ringfenced for improving tourism facilities.
Responding to a government consultation over plans to allow mayoral authority powers to impose overnight visitor charges, CPT also urged moderation over “tourist taxes”, as they are commonly referred to.
In her budget speech in November 2025, Chancellor Rachel Reeves announced proposals to empower Mayoral Strategic Authorities to introduce such levies.
CPT, which represents 800 coach operators and suppliers, says the proceeds of such initiatives should go exclusively towards improving the visitor experience and not be used to plug councils’ other budgetary gaps.
The trade body would like any tourist taxes to lead to improvements in set-down and pick-up points for coaches, passenger facilities, and zero-emission infrastructure.
Pointing out that coach holiday customers are highly sensitive to price, CPT adds that visitor levies should be “simple, limited and hypothecated”.
CPT adds the findings of KPMG research that coach passengers in England generate £1.5 billion annually in domestic spending on overnight trips.
Alison Edwards, Director of Policy and External Relations at CPT, says: “The fundamental principle should be that visitor levies build, rather than damage, the tourist economy.
“Every penny raised should be spent on enhancing the visitor experience – which will, in turn, generate more tourists and boost the local economy.
“Coach passengers aren’t made of money. Tourists must not be milked as cash cows to fill local authority budget gaps. Mayors may well see this as an opportunity – but they must proceed with care to avoid undermining the competitiveness of English domestic tourism.”
Local authorities in Scotland and Wales are already able to impose tourist taxes. Elements of such taxes are only possible in England via Accommodation Business Improvement District levies.
As part of the consultation, which concluded on 18 February, the government sought input on whether Foundation Strategic Authorities – those without an elected mayor – should have such powers. Also raised was how revenues should be calculated and collected, the types of accommodation that would be included, and liability for the levy and how this will be assessed.
