Modelling England's tourist tax

Set the tax

5% of the bill, every night
Tax raised across England
—
Trips by British tourists — Trips by overseas tourists —
Visitor spending lost
—
Leaves the UK — Spent elsewhere in Britain —

Receipts are attributed to tourists’ trips; hotels and hosts absorb part of the tax. Spending lost is gross visitor spending. Comparing it with receipts does not measure a net gain or loss to Britain.

How much tax it raises; how much spending is lost

Region Tax
raised
Fewer
nights
Spending
lost

Assumptions

Illustrative scenarios:

What the tax is charged on

How visitors respond

Visitors judge the tax against

Scope