Plans for £2 per night tourist tax could raise £20m

MAYOR'S OFFICE DRAWING UP PLANS FOR TOURISTS BOOKING HOTELS, HOLIDAY LETS, BED AND BREAKFASTS, AND GUESTHOUSES

- By DANIEL HOLLAND

A NEW 'tourist tax' charged on visitors to the North East could be set at £2 per night.

The Government announced in November that North East mayor Kim McGuinness would be among the local leaders being handed the power to introduce a new levy on overnight stays.

Such a charge would apply to tourists booking hotels, holiday lets, bed and breakfasts, and guesthouses across the region.

Ms McGuinness had previously advocated for an additional £1 a night charge on visitors' bills in her 2024 election manifesto, in order to raise funds to invest back into improving the North East's cultural attractions.

However, she has now told the Local Democracy Reporting Service that her office is currently drawing up plans based on a £2 a night tourist tax - which the Labour mayor says would generate around £20 million per year.

That levy would match the flat £2 nightly charge on hotel stays in Liverpool. Edinburgh has taken a different approach, with the Scottish capital preparing for the launch of a 5% visitor levy in summer 2026.