Andrew Ellson, Consumer Affairs Correspondent
The Times
A young Chinese traveller in London could face a tourist tax chargeGETTY 
Visitors to Britain face the prospect of a “tourist tax” as councils scramble to raise cash to pay for local services. Sadiq Khan, the mayor of London, will today put his weight behind plans to charge visitors to the capital a hotel levy in a move that could raise tens of millions of pounds for City Hall.If successful the plans are likely to be replicated up and down the country as local authorities struggle to fill holes in their budgets after cuts in central government funding. However, the idea is already being bitterly opposed by the hospitality industry which described it as “absolute folly”.More than 30 million people visited London in 2015, according to the Office for National Statistics. Assuming they each stayed for two nights, a £1 per night hotel bed tax would raise at least £60 million for City Hall. Bath and Edinburgh are also considering a levy to fund services.A source close to Mr Khan said: “An independent report by the London Finance Commission will propose a broad range of powers they would like to see devolved from Whitehall to London government.“This includes recommending a consultation on a tourism levy, something the mayor currently does not have the power to introduce, but which is already operated in international cities such as New York, Paris, Berlin, Rome and Amsterdam.”The British Hospitality Association reacted furiously, saying the plan would discourage people from visiting and reduce the amount they spend in the city, affecting shops and restaurants as well as hotels.Ufi Ibrahim, chief executive of the trade group, said: “We regard any bed tax as absolute folly and ask the mayor to think again. The introduction of a London bed tax will not only cost tourists more but harm already hard-pressed London hospitality and tourism businesses. Tourists in the UK already pay the most tax in Europe and the World Economic Forum currently ranks the UK 140 out of 141 countries in terms of tourism tax competitiveness.”Several major European cities already charge hotel taxes but VAT on accommodation is much lower on the continent. VAT adds 20 per cent to the cost of a hotel room in the UK but only 10 per cent in France, Italy and Spain and 7 per cent in Germany.