The levy would be similar to those already in place or planned in cities such as Edinburgh, Manchester, Liverpool and Glasgow, but would not take effect before 2028.

It could potentially be introduced by the Cumbria Mayoral Combined Authority, which could bring with it the power to introduce a nightly accommodation charge. That won’t happen until after the election of a regional mayor in May 2027. But businesses across the region are being urged to prepare for the new arrangement.

A modest charge of £1 to £2 per night per visitor could raise millions, it’s estimated. Funds would be ring-fenced for repairing eroded footpaths, improving public transport, and addressing wastewater and litter issues. And to date, independent polling shows 68% of Cumbrian residents and 64% of visitors support a nominal visitor charge.

But there’s a warning from one of our leading member organisations. Jennifer Cormack, sales and marketing director at Windermere Lake Cruises, says that while recognising the need to secure sustainable funding for the Lake District's landscapes, infrastructure and visitor services, there are legitimate concerns about the potential impact a visitor levy could have on Cumbria's tourism economy.

“Our visitor economy is built largely on independent, family-run businesses which are already facing significant pressures from rising employment costs, business rates and the UK's 20% VAT rate on hospitality. Recent business surveys show that 71% of tourism businesses have experienced reduced profits, while 38% are delaying investment and more than a quarter have already reduced staffing or recruitment plans.

“There also needs to be recognition of the wider competitive landscape. The UK already ranks 113th out of 119 countries for tourism price competitiveness, and many of our European competitors benefit from substantially lower rates of hospitality VAT.

“In addition, international visitors are now facing further costs through the introduction of the UK's Electronic Travel Authorisation (ETA) scheme, adding another charge to the overall cost of visiting the UK. Before introducing an additional visitor levy, businesses want greater clarity on how the levy would operate, how funds would be used, and whether it could create unintended consequences such as reduced visitor spending, shorter stays, or a decline in the destination's competitiveness."

The Lake District Hotels Association point out that there is big difference between the overnight visitor levy (holiday or tourist tax as it’s being labelled) that could be implemented by local mayors, compared with the accommodation business improvement districts (A bids) that have been started in Manchester and now followed by Liverpool and Leeds.

“The A bids have been democratically set up by the hotels and they control how the money is spent - mainly on marketing the city or supporting events to come to the city (the Brits are a recent case in coming Manchester). The overnight visitor levy will be controlled by the mayor and the fear is that it will be spent on filling pot holes etc.”

A formal consultation is currently underway to determine the rate of the levy and how it would be collected. The Lake District Hotels Association will be discussing the issue in detail at their meeting in September and will report further then.