Tourist tax: Who would pay and where would it go?

Holidaymakers in the New Forest could one day be paying a tourist tax on their accommodation under new government plans.

The levy would be optional, with areas able to choose whether to have one, how much to charge and how the money is spent.

One of the area's biggest holiday park operators has said it is "strongly opposed" to the tax, warning that it could deter tourists from visiting the area.

But conservation groups say a levy could help protect the national park if the money is spent in the right way.

The government confirmed its plans in September, following a public consultation, and intends to bring in the legislation during this Parliament.

The levy would be charged as a percentage of the cost of an overnight stay, excluding meals and other extras.

It would apply to hotels, B&Bs, holiday parks, holiday lets and short-term lets such as Airbnb. Day visitors would not pay.

Accommodation businesses would be responsible for paying it, but could pass some or all of the cost on to guests.

The decision would rest with the new Hampshire and the Solent authority, which does not yet have a mayor.

Its first mayoral election is due in 2028, although the authority has asked for it to be brought forward to 2027.

Under the government's rules, any levy would have to apply at a single rate across the whole authority area, meaning the New Forest could not be charged differently from Southampton or Portsmouth.

Authorities would not be allowed to vary the rate by season, and there would be no discount for local residents.

The money raised would not have to be spent on tourism, or in the area where it was raised.

Shorefield Holidays, which runs holiday parks in Hampshire and Dorset, said a levy would "add another cost to family holidays at a time when people are already facing significant increases in the cost of living".

"An additional charge could make some people think twice about visiting the New Forest or choose a different destination altogether," it said.

The company said that while the levy would be collected by businesses, the cost would ultimately have to be passed on to guests or absorbed, at a time when its own costs were rising.

New Forest West MP Sir Desmond Swayne has also opposed the plans, telling the Commons that if hoteliers in Bournemouth were "gagging to pay this tax", those in the New Forest were not.

Sarah Nield, chair of the New Forest Association, said the group did not have a position on whether there should be a levy, but if one was introduced, some of the money should be "ploughed back" into the national park.

"Tourists come to this area because of the qualities of the national park," she said. "National park finances are not particularly healthy."

She said the Forest faced recreational pressure from millions of visitors a year, adding: "The place isn't free... it does require management, it does require rangers."

"If that money could go back to supporting the national park, I think that could in a way benefit everybody," she said.

The New Forest Trust already runs a voluntary Visitor Gift Scheme, which Nield described as "an embryonic type of tourist tax".

About 45 local businesses invite guests to add a donation to their stay, which goes towards conservation projects in the Forest.

The government said the levy would allow areas to invest in attractions and the visitor experience, bringing more overnight stays and benefiting the businesses that pay it.