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Home Region North East

New mayoral tourist tax “will boost investment in North East”

The new levy, which is subject to a 12-week consultation, will apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouse

Peter Morris by Peter Morris
26-11-2025 06:31
in North East
Reading Time: 2 mins read
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Newcastle

Photo by Mohammad Husaini on Unsplash

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Metro mayors like the North East’s Kim McGuinness are to get power to raise cash through a levy on overnight stays in their areas and invest the money in transport, infrastructure and the visitor economy.

The Ministry of Housing, Communities and Local Government (MCHLG) said the move would put local leaders in England on an equal footing with top tourist destinations around the world and was the latest step forward in putting power in the hands of those who know their communities best.

“A new era of events and festivals”

Mayor McGuinness said: “Even a small amount levied on each overnight stay will transform the welcome we can give to people coming to North East England from all over the globe. 

“This signals the start of a new era of events and festivals we will stage to bring a new focus to our unique world heritage sites at Hadrian’s Wall and Durham Cathedral, our stunning coastlines and the iconic Tyne bridges and gorge.

“This supports our ambition to double the size of the visitor economy creating thousands of new jobs in the next decade.”

England attracts over 130mn overnight visits each year. Secretary of State for Housing, Communities and Local Government Steve Reed 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 investing in these communities for years to come.”

The new levy, which is subject to a 12-week consultation, will apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses, said the MHCLG.

Money raised could then help fund local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors – without needing approval from central government. Research shows, according to the Ministry, that reasonable fees have minimal impact on visitor numbers.

This report is based on a press release from the MHCLG.    

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Peter Morris

Peter Morris

I am a semi-retired journalist with experience in North East newspapers dating back to 1964. I have worked on Tyneside, Wearside and Teesside, specialising in regional politics and local government before moving into newsdesk management. I have also worked in media relations for the government. Since retiring I have studied at university and gained a PhD in economic geography.

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