Hilton hotels group warns a 'holiday tax' will hit economic growth and jobs for the young
The boss of Hilton hotels group has warned Labour's plans for a 'holiday tax' will hit hospitality and tourism - as well as denting job opportunities for the young.The Government is currently considering allowing local authorities in England to slap an extra nightly charge on paid-for accommodation, such as hotels, holiday parks, B&Bs and AirBnBs.But Stephen Cassidy, the senior vice president for the group’s 219 hotels in the UK and Ireland, has become the latest to caution that this would hurt economic growth and jobs for the young.And he warned that it would make the UK an unattractive holiday destination for both Brits and potential international visitors. Stephen Cassidy, the senior vice president for Hilton's 219 hotels in the UK and Ireland, has joined in with a chorus of concern over the visitor levy proposals.His remarks echo those of other major holiday operators in the UK, who argue a levy will leave them with no choice but to increase prices.A tax of £2 per person could add £112 to the bill for a family of four on a two-week summer holiday, UKHospitality previously warned.This will force families to shorten holidays, look abroad or not go on holiday at all, hospitality bosses added.UKHospitality’s campaign against the proposal has also been backed by IHG Hotels & Resorts, Parkdean Resorts, Travelodge and Whitbread.In a LinkedIn post yesterday, Cassidy said that the tax ‘should concern anyone with any interest in boosting economic growth, in tackling unprecedented levels of youth unemployment, and maintaining the appeal of the UK as a holiday destination for British families.’It comes as hotels have voiced concerns over increases to business rates and wages this month.Cassidy added: ‘The tax burden on the hospitality sector is already damaging and unfair. Government policies should help unlock hospitality and tourism’s potential – not hold it back.’ Critics of the so-called 'holiday tax' argue it will impact jobs, investment and hotel prices.And he sounded the alarm over rising youth unemployment, which has hit 14.5 per cent among 18 to 24-year-olds.‘At a time when close to one million young people are not in education, employment or training, reducing demand for tourism and hospitality risks reducing opportunity,’ Cassidy said.Supporters of the proposal argue that a levy will help local authorities raise money for infrastructure projects and help communities that feel under pressure from high tourism levels.But Allen Simpson, chief executive of UKHospitality, said a so-called ‘holiday tax’ would ‘decimate tourism.’He said: ‘There are no winners from a holiday tax. From coastal communities and city centres to local guesthouses, pubs and taxi firms, the impacts are stark and indiscriminate. Taxes up, jobs lost and our high streets hit once again.‘Holidays are for relaxing, not taxing. The Government should keep it that way and stop the holiday tax.’Simon Palethorpe, the chief executive of Haven Holidays, also told The Mail: ‘Our guests spend money in local cafes, pubs, restaurants, taxi firms and attractions up and down the country. Fewer visitors means less spending in communities that really rely on it, and ultimately, less investment and fewer jobs, often in areas where employment opportunities are already limited.‘We should be backing the hospitality sector, not putting barriers in its way. It's an engine for job creation and economic growth. It often gives young people their first experience of work, creates opportunities for people returning to the workforce, and offers genuine career paths.’And Tory business spokesman Andrew Griffith added: ‘With hospitality and tourism already shedding jobs by the thousands the last thing Britain needs is a tourist task driving visitors away. Those most hurt will be the young and hard pressed families seeking a staycation.’ AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
