Bacta oppose introduction of an Overnight Visitor Levy

Bacta has opposed the introduction of an Overnight Visitor Levy in England, arguing that it risks unintended economic harm, particularly in coastal communities where tourism remains the primary economic driver and where businesses are already operating under sustained structural pressure.
In its submission to the Department Bacta argued that the FEC sector, a core component of many coastal economies, is already under sustained economic pressure.

Cebr research commissioned by Bacta showed that FECs generated £804 million in turnover in 2024 supported 14,049 jobs, and contributed £535 million in Gross Value Added (GVA) to the UK economy.

The Bacta submission points out that the headline figures mask what is a prolonged period of contraction with real-term sector turnover falling by 25 percent between 2015 and 2024, and operating profits declining by 18 percent over the same period.

Furthermore, it stated that operating profits are forecast to have fallen by a further 29 percent between 2023 and 2024, underlining the fragility of the recovery.

In a separate exercise, modelling undertaken by Bacta and based on Tourism Alliance evidence showed that even modest levies would reduce overnight demand by between 1 percent and 2 percent and that such a reduction could translate into a direct loss of annual turnover for the seaside arcade and FEC sector of between £6.4 million and £12.9 million.

When wider economic multipliers are applied, the modelling shows that this would equate to between £14 million and £28 million in annual economic footprint losses across coastal communities, with up to 362 jobs affected once direct and supported employment is considered.

Expanding on Bacta’s submission Allaster Gair, the trade association’s Director of Communications said: “The majority of Bacta members are SMEs operating in seasonal, weather-dependent, and price-sensitive destinations that are heavily reliant on domestic overnight tourism. Any proposals that jeopardise what is a fragile business environment have to be considered in forensic detail.”

He added: “It should be stressed that the impact goes beyond Bacta member businesses and the people they employ. Cebr estimate that for every £10 of GVA directly generated by seaside arcades, a further £10.55 of GVA is supported in the wider economy. Additionally, for every 100 jobs directly generated, a further 61 are supported across the wider economy.

“Many visitors to seaside towns are domestic families with fixed holiday budgets and we believe that access to leisure and important family time should be protected particularly for those who are on tight family budgets.”

“Bacta would welcome further engagement as the Department considers the responses to this consultation and we are more than happy to explain our arguments in greater detail, expand on the research that underpins our empirical arguments and provide any further information to help inform the debate.”

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26 February 2026

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