Price of holiday park breaks could DOUBLE thanks to new Budget tax
THE price of holiday park breaks could almost DOUBLE following the new tourist tax announced in the budget.
Yesterday, Rachel Reeves announced a wave of new rules including the rise of Air Passenger Duty and new tourist tax regulations.
And industry sources have said the shocking tourist tax rise – set to be £2 extra a night – would be ‘scary’ and put prices up for thousands of families.
A senior holiday park executive said: “This tax will destroy holiday dreams, putting a short break at the seaside out of reach for many.
“Have they put Basil Fawlty in charge of boosting tourism?”
North Yorkshire’s local authorities said they are in favour of introducing the tax – hitting the thousands who holiday in the popular resorts of Scarborough, Whitby and Filey.
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West Yorkshire councils have also said they would impose the charge – putting holiday parks in the Dales in the firing line.
And families taking the cheapest holiday park breaks face the biggest increases.
Right now, a family of four can enjoy a four-night break at a holiday park for around £49 in low season, made up of a £40.80 charge for the break and VAT at 20 per cent.
But the new tax is imposed on four people at the suggested rate of £2 per night that will add £32 to the cost of the holiday – bringing the total up to £81.
That’s a tax rate of 98.5 per cent – an increase of 65 per cent on what holidaymakers currently pay.
If a family of six have to pay the £2 tax on the same four-night break it would bring the cost of the tax to £48 – and increase the price of the holiday to £97.
That works out as a tax rate of 138 per cent, an increase of 98 per cent over the current costs.
For a family of five paying £100 – £83.33 cost plus 20 per cent VAT – for a four night break, the tax would add £40 to the bill, an increase of 40 per cent on the price of a holiday and a total tax rate of 69 per cent.
For a seven night stay for a family of four, prices for next year start at popular holiday parks at just £79 – £65.83 cost plus 20 per cent VAT.
With the tourist tax, a family of four would have to pay £56, bringing the total cost of the holiday to £135, an increase of 71 per cent on current costs.
Dermot King, COO of Unity Holidays which owns Skirlington Coast in East Yorkshire, said: “Any tax such as this is clearly regressive as it a tax on hard-working people who choose to spend their money taking holidays in this country.
And the far-reaching impact of the tax will also hit those enjoying cottage breaks.
Sykes Holiday Cottages – one of the UK’s biggest self-catering companies – fear the tax increase could devastate staycations.
Ben Spier, Head of Policy and Regulation at Sykes Holiday Cottages, said: “This levy won’t just be felt by families already managing rising household costs.
“It threatens to deter people from choosing holidays in the UK which would be a serious blow for the many communities that depend heavily on spending from the overnight visitors who will face this levy.
“The UK’s tourism and hospitality businesses are already among the most heavily taxed in Europe, facing everything from steep business rates and corporation tax to some of the highest VAT levels in the sector.
“Adding a new tourism levy risks putting more pressure, and more admin, on the many small businesses – from holiday let owners to local pubs, shops and attractions – who rely on a thriving visitor economy.
“And all this, for a relatively small extra return from visitors who still choose to come.
“Rather than adding another cost for visitors, disincentivizing them when the aim is to attract more of them, the focus should be on ensuring that the substantial tax income already generated is properly directed to the local communities where it’s generated.”
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