A consultation into the potential measure is awaiting a Government response and legislation to introduce levy powers to mayoral authorities was included in the King’s Speech.
MPs and peers will hear from impacted businesses on 20 May, 9 June and 23 June at oral evidence sessions.
Following these sessions, the APPG will prepare and publish its findings from the inquiry, with recommendations for the Government.
Inquiry purpose
It will cover the principle of the levy itself, the potential impacts on the visitor economy as well as the design and implementation of the levy. The APPG has also called for written evidence from interested businesses.
APPG chair and Blackpool South MP Chris Webb said: “Hospitality and tourism are vital to our local economies and communities across the UK.
“They support jobs, investment and growth so it is important any proposals for a visitor levy are fully considered.
“This inquiry will ensure parliament hears directly from affected businesses and aims to understand the potential impacts on businesses, destinations and customers.”
Government warned
Following the King’s Speech, UKHospitality said the Government’s U-turn on the Holiday Tax Bill would mean UK staycations will be more expensive.
The trade body said this was despite Government commitments to the House of Commons it would not introduce such a tax and estimated it would add £100 to the cost of a family two-week holiday during a cost-of-living crisis.
This came after a poll of more than 10,000 Brits from UKH found more than half (56%) were opposed to the tax compared to about a quarter (24%) who were in favour of it.
Furthermore, research from Oxford Economics found it would mean a £1.6bn tax increase for holidaymakers, cost 33,000 jobs, reduce GDP by £2.2bn, lose the Treasury £688m and reduce tourism spending by £1.8bn.
The trade association said it had written to each MP, to tell them how many votes they risk at the next election.
