Tourist taxes could increase pressure on business travel budgets – CMAC Group

Proposed and newly introduced tourism levies across UK cities could have wider implications for business travel, according to experts at CMAC Group.

The warning comes as debate continues around the UK Government’s proposed Overnight Visitor Levy, with several business travel organisations arguing the tax should apply only to leisure travel rather than work-related trips.

Ashley Seed, chief commercial officer at CMAC Group, said business travel plays a key role in economic growth and should be treated differently from tourism.

Seed added: “Business events are catalysts for economic growth, innovation, and skills development, and should not be treated as leisure tourism; any measures that hinder this activity risk triggering a chain reaction across the economy.”

The firm said even relatively small levies could have a cumulative impact on corporate travel budgets.

While charges such as Manchester’s £1 per night fee may appear modest, costs can increase significantly for organisations with frequent travel requirements.

Seed said: “While tourist taxes are often aimed at leisure travellers, business travel budgets are not immune. Even a modest per-night levy can quickly add up across multiple trips, especially for companies with frequent travel schedules.

“This can create budget pressures, forcing organisations to reconsider how they book accommodation, flights and transport.”