THE Government has been urged by West Somerset MP Rachel Gilmour to ‘think long and hard’ before pushing forward with any ‘tourism tax’.

Labour held a consultation on giving some authorities powers to create ‘local overnight visitor levies’, essentially charging tourists an additional fee to stay in an area, with the money reinvested in local services.

Mrs Gilmour, speaking in a Parliamentary debate, warned a levy could put additional pressure on the hospitality sector, leading to job losses and fewer visitors to the Westcountry, where tourism was ‘the lifeblood of our local economy’.

She said: “On Exmoor alone, the visitor economy supports around two-thirds of all employment.

“We have 8.4 million visitor days a year, generating economic activity of £682 million.

“Hospitality businesses are operating in the most extraordinarily challenging climate.

“Many are already swamped by red tape and administrative burdens, and introducing a new levy risks imposing yet another layer of cost and complexity.

“Visitor levies across Europe typically sit alongside much lower VAT rates.

“If we want to maintain our competitive edge, the Government must think long and hard about this issue and get the balance right.

“If they wedded the tax to a VAT slash, as proposed by my party, they would have my ear, but only on the basis it was a hypothecated tax for the sole benefit of my constituents.

“Crucially, we must ask whether any levy would genuinely support the local economy, or whether the risks to the hospitality sector would outweigh the benefits.

“Visitor spending does not stop at the hotel door, it sustains pubs, shops, attractions, and transport.

“Any reduction in visitor numbers could ripple across the entire local economy.”

Housing Minister Alison McGovern said the Government was seeking to learn best practice from European countries and devolved governments in Scotland and Wales, which already had visitor levies.