Tourist taxes are typical in European countries – and plans have been mooted for the East Midlands
Praveen and Dency, owners of The Elms Hotel in Retford(Image: The Elms Hotel)
Owners of smaller Nottinghamshire hotels say a potential tax on overnight stays in the region could worsen the ‘critical’ financial strain on their businesses.
Ahead of the autumn budget being set in late 2025, the government announced that England’s mayors would be given the power to charge a levy on overnight stays in their regions.
This type of tourism tax is the norm across mainland Europe, such as in Germany, Greece and Spain. Edinburgh and Manchester are two UK cities that have a ‘city tax’ already implemented.
Following the announcement in late 2025, the Labour Mayor of the East Midlands, Claire Ward, suggested a tourism tax of £1 or £2 could be coming to overnight Nottinghamshire and Derbyshire stays in the future which could help improve parking, bus services and visitor attractions.
The Elms Hotel in London Road, Retford (Image: Google)
The topic was recently debated in a March Nottinghamshire County Council meeting, where the authority’s Conservative group called for councillors to oppose the potential future levy as it ‘undermined’ and ‘harmed’ sectors under “significant economic pressure”.
Reform councillor, Mike Robertson, voted against the Tories’ motion, but expressed his concern for such a tax in north Nottinghamshire, where his Misterton division has a lot of seasonal tourism in its caravan and glamping sites, as well as boaters on the River Trent and Chesterfield Canal.
He said: “The Misterton division would do its fair share of levying this tourist tax but would any of that money be reinvested into our division? Or would it be siphoned off to subsidise vanity projects in the urban metropolis?
“From what I have seen from this mayor, she doesn’t fill me with confidence she would have the Misterton division’s interest at heart,” he continued, adding he had “little faith” any money would be invested in the north of the county.
Speaking to the Local Democracy Reporting Service (LDRS), Conservative County Councillor Mike Introna, representing Retford East, agreed with Cllr Robertson’s comments, adding Nottinghamshire “struggles a bit” with being a day-trip visit and the potential tax would not help.
Owners of independent, family-run hotels in Nottinghamshire told the LDRS a future levy would place an “additional burden” on an already-stretched and struggling hospitality sector.
A spokesperson for The Elms Hotel in Retford said the sector was currently dealing with “substantial” energy cost increases, other operating expenses and reduced customer spending due to the cost of living.
Nottingham city centre(Image: Joseph Raynor/ Nottingham Post)
They said: “To cope with this, we are currently relying on special offers and reducing prices across food, rooms, and functions in order to attract and retain customers.
“However, this has resulted in reduced margins and added pressure on our ability to sustain the business.
“In this context, the potential introduction of a tourism tax – even at £1 to £2 per night – would place an additional burden on both businesses and customers.
“For areas such as northern Nottinghamshire, where tourism is still growing, this could discourage visitors and negatively affect local hotels more than those in more established or higher-demand areas.”
Marina Peshchanitsky, owner of Mama’s Inn Boutique Guest House, which opened in 2014 in Mansfield Road, Nottingham, called an extra tax a “nail in the coffin”.
(Image: Nottingham Post/Marie Wilson)
Ms Peshchanitsky’s guest house is currently in the process of being sold. She told the LDRS: “We want to retire, it’s not an enjoyable business anymore. Year by year, our income and what we get from the guests, what they’re interested in buying, is less and less.
“Our breakfast prices didn’t change for five or six years, we didn’t change the parking, we reduced the price of rooms significantly. Before it was a chocolate on a pillow – no more… little things are disappearing because we just can’t afford it.
“The city council won’t benefit if hotels suffer because tourists spend on transportation, shops – if we cut this industry completely there will be eerie cities.”
An East Midlands Combined County Authority spokesperson said: “Nottinghamshire has several representatives on EMCCA Board, and they will work closely with the Mayor to ensure that any future levy is invested to the benefit of its people and places.”