UK 'Bed Tax' Rejected

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. October 14, 2008

LONDON, UK, March 14, 2006. Proposals to raise UK hotel and accommodation prices by 10 percent via a new local Government tax have been rejected by the nation.

A survey commissioned by Travelodge reveals 89 percent of UK holidaymakers deem an additional taxation on their UK holidays as unfair. The Lyons Inquiry, will ask Government to consider plans to tax British consumers on the lb6.5 Billion a year they spend on UK hotels, B&B's, caravan's, mobile homes and cottages - adding up to lb100 to the cost of an average family's UK break.

The survey also shows that price rises would force holidaymakers to cut short their UK holidays, eat out less or visit less tourist attractions.

Travelodge's CEO, Grant Hearn said, "British holidaymakers already believe that they are paying too much for their holidays and this tax is going to hit their pockets even harder. Many families wait all year for their summer holiday and now this tax could force them to cut short their break or cancel their holiday completely."

A survey of 2,000 respondents reveals:

64.5% of consumers said a new tax would put them off going away on holiday in the UK

85% of consumers believe the cost of UK hotels is already too high

88% of consumers believe they pay too much tax

67% would re-consider the length of their stay

79% would cut back on spending while away

80% would reconsider staying overnight at a stag and hen party event

The average UK break costs lb204

Domestic tourists spend on average lb254 each while on a week's UK break

Grant Hearn, said "We want to make hotels accessible for everyone, not just the rich. What consumers don't want is to be taxed out of enjoying our lb10 and lb26 rooms, which is what will happen unless the idea of UK bed tax is scrapped."

Travelodge warned that if the proposals are adopted, everyone enjoying caravan trips, staying in tents at music festivals, families on camp-sites and sports fans staying in hotels at matches could be hit with the tax.

Consumers stated that differing taxes across the UK would make hotel prices confusing and less transparent, something Which? identified as a key concern experienced by consumers faced by differing taxes in air travel.

As a result, the research[3] shows that consumers could cut back spending on holiday favourites such has postcards, rollercoaster rides, sticks of rock, going to the pub, fish and chips and buckets and spades.