Three leading industry bodies, the Business Travel Association, the Global Business Travel Association and the Institute of Travel Management, have submitted a joint response to the UK Government’s consultation on a proposed Overnight Visitor Levy, calling for business travel to be explicitly excluded from any new local tourism taxes.
The consultation forms part of government proposals to grant Mayors of Strategic Authorities the power to introduce local visitor levies, with revenues earmarked for infrastructure, cultural investment and regeneration initiatives.
While the associations support the principle of local reinvestment, they argue that essential business travel should not be categorised or taxed in the same way as discretionary tourism.
“business travellers are not tourists”
In their joint submission, the organisations emphasise that business travel is economically productive and non-discretionary. They argue that including corporate stays within a visitor levy would effectively create a new tax on UK businesses.
Andrew Clarke, Commercial Director at the Business Travel Association, said: “An overnight visitor levy should apply solely to discretionary tourism activity and should not apply to business travel undertaken for and on behalf of work. Business travellers are not tourists. Their travel is non-discretionary, economically productive, and directly linked to employment, investment, skills development, and regional growth.”
The associations warn that applying a levy to corporate travel would increase costs for employers and employees, disrupt supply chains and risk undermining inward investment.
A key concern outlined in the submission is the potential for fragmented local schemes to create administrative complexity for organisations operating across multiple UK regions.
The bodies argue that any levy framework must be nationally consistent and simple to administer. Percentage-based or locally varied charges, they say, would add cost and operational burden to managed travel programmes and SMEs alike.
Catherine Logan, Executive Vice President, Global Operations at GBTA, noted that the UK is projected to see business travel spend of £44.37 billion in 2025. She described corporate mobility as a “multiplier” for the wider economy, supporting airlines, rail operators, taxi firms, hotels and restaurants.
“Business travel is not discretionary travel. It is a strategic catalyst for growth, delivering a clear and measurable return on investment for UK and global firms,” she said.
Scott Davies, Chief Executive Officer of ITM, added that poorly designed local charges risk adding cost and complexity “at a time when productivity and regional growth depend on mobility”.
The joint response also calls for clarity around how levy revenues would be allocated. Where visitor levies are introduced, the associations say funds should be directed towards tourism-related infrastructure, transport and public realm improvements that benefit both visitors and local communities.
They further urge government to provide clear guidance, adequate lead-in times and transparent reporting mechanisms to prevent unintended economic consequences.
For corporate travel buyers and procurement leaders, the outcome of the consultation could have material cost implications. With many UK cities exploring new funding mechanisms for regeneration, the debate over whether business travel should be ring-fenced from tourism taxes is likely to intensify.
As policymakers consider next steps, industry bodies are making clear that safeguarding business mobility is central to protecting regional competitiveness and economic growth.