Popular tourist city eyes new tax on overnight travelers to help boost local economy

London is weighing whether to implement a new tourist tax targeting overnight guests.

Mayor Sadiq Khan is reportedly looking into charging overnight visitors a tax on stays at hotels and short-term rentals.

"The mayor has been clear [about considering] a modest tourist levy, similar to other international cities," a spokesperson for the mayor of London told the Local Democracy Reporting Service.

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The spokesperson added that such a tax "would boost [the] economy, deliver growth and help cement London's reputation as a global tourism and business destination."

London remains a popular tourist attraction, drawing some 21 million visitors in recent years - with around 3.6 million "overnight visits" coming from North America, according to the U.K.'s Office for National Statistics. 

The potential tax stems from the English Devolution and Community Empowerment Bill, which includes a clause permitting local leaders to "raise revenue locally through a new overnight visitor levy."

While there has been no official declaration of the specifics, many suggest the levy could be 5% per night.

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Andrew Carter, chief executive of Centre for Cities, told Conde Nast Traveler that introducing a tourist tax "is the start of a bigger [program] of devolving tax and spending powers to the capital."

"London is the most productive big city in the U.K., and devolving more fiscal powers would give the capital more policy tools to accelerate growth in the economy," said Carter.

London recently launched a "Mind the Grab" campaign to warn pedestrians about phone snatches.

Bold purple chalk signs on the edge of some sidewalks say, "Mind the Grab," and "Step back from the Kerb! Phone snatching hot spot."

The latest news comes as European cities and other destinations have been grappling with overtourism.

Greek officials, for example, are planning to impose a $22 tax on visitors cruising to Santorini or Mykonos.

Aberdeen, Scotland, greenlighted a 7% visitor levy in August to begin on April 1, 2027.

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The City of Edinburgh, Scotland, plans to charge a 5% per night tax on accommodations starting in July 2026.

Norway also introduced a tourist tax, allowing certain cities to introduce a 3% tax on overnight stays in "areas particularly affected by tourism," as Fox News Digital previously reported.

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Venice, Italy, introduced a pilot program in 2024 to charge day-trippers a $5.17 (5 euros) entry fee. The city is now now looking to double the tax.