Newquay B&Bs Warn Tourist Tax Could Be ‘Nail in the Coffin’
Newquay Businesses Voice Alarm Over Proposed Holiday Tax
A proposed ‘holiday tax’ for visitors to Devon and Cornwall is causing significant apprehension among local bed and breakfast owners and hospitality businesses, with many warning it could be a ‘nail in the coffin’ for the region’s vital tourism sector. The potential levy on overnight stays at hotels, holiday lets, and guesthouses, which could be implemented as early as 2027, aims to allow local authorities to raise funds. However, industry leaders argue that introducing such a charge would disproportionately impact an industry still recovering from recent economic challenges and rising operational costs. Businesses fear that even a small charge, like the suggested £2 per person per night, could add considerable expense to family holidays, deterring visitors and ultimately harming local economies that rely heavily on tourism.
Local Concerns from St Ives to Newquay
Voices from across Cornwall highlight the severe local impact this tax could have. Joby Godolphin, owner of Storm in a Tea Cup in St Ives, labelled the holiday tax as ‘ridiculous,’ emphasizing that visitors seeking a beautiful, free experience shouldn’t be met with additional charges. He pointed out that with rising council tax and energy bills, adding another financial burden to holidays feels like ‘money grabbing.’ Similarly, Veryan Palmer, who chairs Newquay BID and is an executive director at the five-star Headland Hotel in Newquay, stressed the particular challenges for rural areas. She noted that a significant portion of Cornwall’s tourism comes from residents within Cornish postcodes, meaning locals would effectively be taxed to visit a nearby town, an ‘absurd’ notion when they already contribute through various taxes. Her concern is that fewer overnight stays will mean less revenue, leading to job losses and forcing businesses to close during the quieter winter months, undermining the very reason many choose to visit Newquay.
Broader Economic Ripple Effects Feared
The potential ripple effect of the holiday tax extends beyond just B&Bs. The hospitality sector is a major employer, and any downturn could lead to significant job losses across the region. Veryan Palmer highlighted that the tax could impact travelling performance groups, theatres, and other cultural activities that often operate on tight budgets and rely on visitor stays. While some, like Dartmoor B&B owner Kevin Chamberlain, suggest support for such a levy if funds are directly ring-fenced for local projects like national park maintenance, the prevailing sentiment among Newquay and wider Cornish businesses is one of deep concern. They argue that the unintended consequences, such as discouraging visitors and reducing the ambition for year-round employment, have not been fully considered, potentially jeopardizing the long-term sustainability of Cornwall’s beloved tourism industry.
Source: B&B owners slam tourist tax as a ‘nail in the coffin’
