An incoming tourism tax, set to increase the cost of hotel rooms and Airbnbs, is expected to affect a wider range of businesses beyond the hospitality sector, according to James Ford.
Ford argues that the tax will impact sales staff staying overnight in the UK, clients visiting for contract negotiations, and expenses for conference attendance. Multinational businesses may also see increased costs when overseas staff travel for meetings.
Business travel represents around 25% of hotel stays in London, with the capital accounting for 57% of all inbound business visits to the UK. Business visitors contribute approximately £5bn annually to the UK economy and spend about £209 per night, compared to £101 for other visitors.
Previous tax rises in 2025 reportedly added £3.4bn to the hospitality sector's bottom line, with employer national insurance contributions increasing wage bills by £1bn. Business rates for hotels are also said to be rising, with average bills increasing by 115%.