Popular tourist city eyes new tax on overnight travelers to help boost local economy

London is weighing whether to implement a newtourist taxtargeting overnight guests.

Mayor Sadiq Khan is reportedly looking into charging overnight visitors a tax on stays at hotels and short-term rentals.

“The mayor has been clear [about considering] a modest tourist levy, similar to other international cities,” a spokesperson for the mayor of London told the Local Democracy Reporting Service.

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The spokesperson added that such a tax “would boost [the] economy, deliver growth and help cement London’s reputation as a global tourism and business destination.”

London remains a popular tourist attraction, drawing some 21 million visitors in recent years — with around 3.6 million “overnight visits” coming from North America, according to the U.K.’s Office for National Statistics. 

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The City of London is weighing whether to implement a new tourist tax that would target overnight guests.(Richard Heathcote/Getty Images)

The potential tax stems from the English Devolution and Community Empowerment Bill, which includes a clause permitting local leaders to “raise revenue locally through a newovernight visitor levy.”

While there has been no official declaration of the specifics, many suggest the levy could be 5% per night.

Conde Nast Travelerthat introducing a tourist tax “is the start of a bigger [program] of devolving tax and spending powers to the capital.”

“London is the most productive big city in the U.K., and devolving more fiscal powers would give the capital more policy tools to accelerate growth in the economy,” said Carter.

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While there has been no official declaration of the specifics, many suggest the levy could be 5% per night.(iStock)

London recently launched a “Mind the Grab” campaign to warn pedestrians about phone snatches.

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Bold purple chalk signs on the edge of some sidewalks say, “Mind the Grab,” and “Step back from the Kerb!Phone snatching hot spot.”

The latest news comes as European cities and other destinations have been grappling with overtourism.

London remains a popular tourist attraction, drawing some 21 million visitors in recent years, with around 3.6 million “overnight visits” coming from North America.(Reuters/Henry Nicholls)

Greek officials, for example, are planning to impose a $22 tax onvisitors cruising to Santorini or Mykonos.

Aberdeen, Scotland, greenlighteda 7% visitor levyin August to begin on April 1, 2027.

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The City of Edinburgh, Scotland, plans to chargea 5% per night taxon accommodations starting in July 2026.

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Norway also introduced a tourist tax, allowing certain cities to introduce a 3% tax on overnight stays in “areas particularly affected by tourism,�

pilot program in 2024 to charge day-trippers a $5.17 (5 euros) entry fee.The city is now now looking to double the tax.

Ashley J.