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London deserves the power to implement a tourist tax that could generate £240 million annually. The capital lacks fiscal control over the wealth it creates while visitors use transport and services paid for by local taxpayers. Every other G7 country allows tourist levies, and London won't see visitor drops since popular destinations are less sensitive to such taxes.
A tourist tax would devastate Britain's already struggling hospitality sector facing pandemic recovery, staff shortages and existing burdens like high air taxes and the £10 ETA surcharge. U.K. visitor numbers dropped 5.6% below 2019 levels, creating a £2.8 billion spending shortfall. Adding more taxes risks job losses in a sector employing 3.5 million people.