Isle Of Wight MP Warns Proposed Tourism Tax Could Hit Isle Of Wight Visitor Economy

Joe Robertson MP is urging local tourism and hospitality businesses to have their say on the Government’s proposed new “tourism tax”, warning it could have serious implications for the Isle of Wight’s visitor economy.

The Government has launched a consultation on plans to give Combined Mayoral Authorities in England the power to introduce an Overnight Visitor Levy on short-term visitor accommodation.

The Isle of Wight, together with Hampshire, is set to get a new Mayor in 2028.

The levy could apply to most short-term commercial accommodation, including hotels, guesthouses and holiday lets, with charges set either as a flat nightly fee or as a percentage of the cost.

Mr Robertson, who speaks on tourism matters for the Conservatives in Parliament, says the tax would add further pressure on an industry that is already heavily taxed.

He highlighted that coastal communities reliant on tourism, like the Isle of Wight, would be particularly affected.

He said:

“Overnight visitors play an important role in the Isle of Wight’s economy, accounting for 38% of total economic activity and supporting thousands of local jobs and businesses.

"We already have expensive ferry costs to contend with, we do not need more tax raising powers created by the Government.

"The tourism tax has the potential to suppress visitor demand and place an additional burden on our hospitality industry at a time when many local businesses are seeing their business rates go up.”

Mr Robertson is encouraging residents, local businesses and stakeholders to make their views known as part of the consultation.

The consultation closes on 18 February 2026 and can be accessed online via the Ministry of Housing, Communities and Local Government portal.