Speaking to reporters, O’Leary said the proposed regional levy on hotel stays would have no statutory upper limit, although government sources indicated that most mayors are likely to keep the rate modest – “a few percent,” according to officials.
He argued that adding a hotel‑night charge would double‑tax tourists, who already shoulder the Air Passenger Duty (APD) levied on flights from most UK airports. Airlines have long called for APD to be reduced or scrapped, claiming a lower duty would stimulate travel demand.
“We call on the Prime Minister, Mr Burnham, if he’s really serious about delivering growth in every postcode,” O’Leary said, adding that boosting aviation and tourism can be turned on or off instantly and would generate growth across every region and airport.
While O’Leary said he does not have a “great fundamental philosophical difference” with the regional tax itself, he warned that an additional charge could deter visitors and undermine the very regional economies the levy aims to support.
The government has not yet set a ceiling for the levy, and officials say mayors will likely set rates low enough to avoid a heavy burden on travellers, but the debate highlights the tension between local revenue goals and the airline industry’s push for lower travel taxes.