254 million francs in revenue London wants to introduce a tourism tax

London is considering a new tourism levy. Mayor Sadiq Khan is open to the move, which could allow cities to generate their own revenue from travel for the first time.

London Mayor Sadiq Khan has shown himself to be open to the introduction of a tourist tax. As the BBC reports, this would be possible for the first time thanks to the new British "English Devolution and Community Empowerment Bill". The plan is intended to extend the freedom of local authorities to make decisions.

With around 89 million overnight stays in 2024, London is one of the most visited cities in the world. Proponents of a levy emphasize that it could generate additional revenue without slowing down tourism. According to the BBC, an analysis by the think tank Centre for Cities shows that a surcharge of just five percent could generate up to 240 million pounds a year (around 254 million Swiss francs).

Several London boroughs, including Westminster, Southwark and Brent, support the concept. Westminster in particular points to the cost of millions of day visitors. Borough leader Adam Hug said that an overnight levy could distribute the financial burden more fairly.

Already a reality in other countries

The levy has long been established in other countries: Scotland allows local authorities to introduce their own models, while in Wales a fixed fee of 1.30 pounds per night is to apply from 2026. Major cities such as New York, Tokyo, Paris and Milan also already levy tourism taxes.

No decision has yet been made. Khan emphasized that a moderate tax could promote growth and secure London's international competitiveness.