Owners of small and independent hotels across Nottinghamshire have raised alarm over proposals for a potential overnight tourism tax, warning it could place further pressure on an already struggling hospitality sector. The concerns follow a Government announcement ahead of the autumn 2025 budget that mayors across England will be granted powers to introduce levies on overnight stays.

Similar "city taxes" are already widely used across mainland Europe, including in countries such as Germany, Greece and Spain, and have also been adopted in UK cities like Edinburgh and Manchester. In the East Midlands, Labour Mayor Claire Ward has suggested a levy of £1 or £2 per night could be introduced for stays in Nottinghamshire and Derbyshire.

The funds, she said, could help improve infrastructure such as parking, bus services and visitor attractions. However, the proposal has sparked political debate and concern among local businesses.

At a Nottinghamshire County Council meeting in March, the Conservative group called on councillors to oppose any future levy, arguing it would "undermine" sectors already under "significant economic pressure." While the motion was not universally supported, councillors from across the chamber voiced reservations.

Marina Peshchanitsky, owner of Mama's Inn Boutique Guest House in Nottingham, described the potential tax as "a nail in the coffin" for small operators. Her business, opened in 2014, is currently being sold as she prepares to retire.

"We want to retire - it's not an enjoyable business anymore," she told CHAD. "Year by year, our income and what guests are willing to spend is less and less."

She added that cost-cutting measures have already eroded the guest experience.
"Little things are disappearing because we just can't afford it," she said.

"The city council won't benefit if hotels suffer, because tourists spend on transport and shops. If we lose this industry, there will be eerie cities."

Councillor Mike Robertson, who represents Misterton, said rural and seasonal tourism areas could be disproportionately affected.
"The Misterton division would do its fair share of levying this tourist tax," he said, "but would any of that money be reinvested into our division, or would it be siphoned off to subsidise vanity projects in the urban metropolis?"

He added he had "little faith" that funds raised would benefit northern parts of the county.

Councillor Mike Introna, representing Retford East, echoed those concerns, noting that Nottinghamshire often relies on day-trip visitors and warning that an overnight levy could discourage longer stays.

Hospitality businesses say the timing of the proposal is particularly challenging.

A spokesperson for The Elms Hotel in Retford said the industry is already grappling with rising energy costs, increasing operating expenses and reduced customer spending linked to the ongoing cost-of-living pressures.

"To cope with this, we are currently relying on special offers and reducing prices across food, rooms and functions in order to attract and retain customers," they said.

"However, this has resulted in reduced margins and added pressure on our ability to sustain the business. In this context, the potential introduction of a tourism tax - even at £1 to £2 per night - would place an additional burden on both businesses and customers."

They warned that in less-established tourism areas, particularly in northern Nottinghamshire, such a levy could deter visitors altogether.

In response, a spokesperson for the East Midlands Combined County Authority said local representatives would play a key role in shaping any future scheme.

"Nottinghamshire has several representatives on the board, and they will work closely with the mayor to ensure that any future levy is invested to the benefit of its people and places," they said.F