A new London tourism tax has been proposed to help fund TfL

Londoners love public transport. Tourists? Not so popular. However, a new tax proposal suggests that London visitors should be levied to help fund Transport for London (TfL), which is in desperate need of more income following the loss of revenue during the last two years. 

On Wednesday July 13, Professor Tony Travers of the London School of Economics told the London Assembly that a tourism tax, such as ones operated in several other major cities, would be worth ‘hundreds of millions of pounds’ a year and could be used to finance TfL. During the pandemic, TfL’s income fare collapsed and it has still not recovered, leading to multiple short-term government bailouts being given while City Hall lobbies for proper long-term funding.

A 2017 report estimated that 82 percent of bed nights spent in London were accounted for by overseas visits, and so a £2.50 rate per night for a hotel or tourism tax would produce about £102 million per year. The tax may also impact cruise ships, Airbnb, and other similar rental websites. 

Tourism levies are common in other major cities, including Paris, Berlin, Rome, Amsterdam and New York. Paris’s tax is based on hotel ratings and could produce about £140 million per year if used in London, while Berlin’s is 5 percent of the room rate per night and could generate around £240 million. 

Mayor Sadiq Khan, Chair of TfL, has repeatedly stated that ‘Without a long term funding deal, TfL will have to prepare to make further painful cuts to London’s transport network’ in a ‘managed decline’, with the equivalent of one tube line and 100 bus routes risking closure. The Mayor went on to say that ‘the devastating impact of the pandemic is the only reason TfL needs financial support’ as due to last year’s government bailout the transport system must now source between £500m and £1bn extra in revenue per year.

There have been varying opinions on the proposal, as some worry that it will discourage tourism while others support the idea. They only agree on one thing: nobody wants any more disruptions or cuts to the capital’s public transport. Otherwise someone will need to invent teleportation.

The government WILL spend £9m on testing flying taxis, though.

Is it really safe to swim in London’s canals? (As a last resort.)