London has announced plans to introduce a £2.50 per night “tourist tax” on hotel stays from 2026. The levy will be used to fund city infrastructure, transport upgrades, and cultural initiatives.
While city officials argue the tax is modest compared to other global destinations, critics fear it may deter budget travellers. The hotel industry has given a mixed response, though many agree that London remains a top international attraction regardless of the fee.
Tourism boards estimate the tax could generate over £200 million annually, which would be reinvested into maintaining the capital’s global appeal.
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