Skegness holidaymakers avoid proposed ‘tourism tax’ after Lincolnshire Mayor rules out visitor levy

Holidaymakers visiting Skegness will not face a proposed new tax on overnight stays after the Mayor of Greater Lincolnshire confirmed she will not introduce the levy across the region.

Dame Andrea Jenkyns has ruled out using new powers announced by the Government which would allow mayors and other eligible local leaders in England to introduce an Overnight Visitor Levy on accommodation.

The plans could allow a percentage-based charge to be added to stays at hotels, guest houses, B&Bs and other paid accommodation.

However, Dame Andrea said she was concerned that introducing an additional charge could discourage visitors and place further pressure on Lincolnshire’s tourism and hospitality businesses.

The decision is particularly significant for coastal resorts such as Skegness, Ingoldmells and Mablethorpe, where thousands of jobs and businesses depend heavily on visitors during the holiday season.

Greater Lincolnshire Mayor rules out visitor levy

Announcing her position, Dame Andrea said she welcomed additional powers being devolved to regional mayors but would not use the proposed visitor levy.

She said Lincolnshire’s hospitality sector had already faced significant financial pressures and argued that adding another cost to holidays could make the county less attractive to visitors.

The Government announced the new powers on September 10, saying an Overnight Visitor Levy could provide extra funding for priorities including high streets, public transport and events.

Rather than charging visitors a fixed amount per night, the Government intends for any levy to be calculated as a percentage of accommodation costs, meaning cheaper stays would attract a smaller charge.

Introducing a levy would be optional, meaning individual areas could decide whether the potential additional revenue outweighed the risk of increasing the cost of visiting.

Dame Andrea has decided that Greater Lincolnshire will not introduce one.

Why a tourism tax matters to Skegness

Tourism is one of the most important industries on the Lincolnshire coast.

Government figures previously valued Greater Lincolnshire's visitor economy at around £2.62 billion, supporting more than 28,000 jobs across the wider area. Skegness is also described in the Greater Lincolnshire devolution deal as one of the UK's most popular holiday resorts.

The resort attracts millions of visitors each year, supporting hotels, caravan parks, attractions, restaurants, pubs, shops and other businesses.

That has led to concerns that even a relatively small additional charge could influence families choosing between competing UK seaside destinations.

Those concerns have previously been raised in Skegness.

When proposals for a visitor levy were being discussed in November 2025, Skegness Mayor Jimmy Brookes told the BBC that visitors expected a good-value holiday and questioned whether an additional charge could influence whether families chose Skegness or another resort.

Bob Walker, chairman of Skegness Accommodation Network Development, said at the time that there could be benefits if money raised was retained locally, but also warned of the competitive disadvantage Skegness could face if rival resorts did not introduce the same charge.

Supporters argue levy could fund local improvements

Not everyone in Lincolnshire agrees with the decision.

Lincoln & District Trades Council has called on the Greater Lincolnshire Mayor to reconsider, arguing that a levy could generate money to improve infrastructure and public services in areas that accommodate large numbers of visitors.

The organisation suggested revenue could potentially support public transport, roads, public toilets, street cleaning, beaches, parks, events and town-centre regeneration.

Supporters of visitor levies argue that tourists place additional demands on local infrastructure and that a relatively small contribution from overnight visitors could be reinvested in destinations.

The Government has made a similar argument, saying revenue from an Overnight Visitor Levy could be used locally to improve places and encourage further tourism.

Concerns over impact on seaside holidays

Opponents, however, argue that the additional cost would ultimately be paid by holidaymakers and could particularly affect destinations competing for price-conscious domestic tourists.

That argument carries particular significance in Skegness, where caravan holidays, guest houses and family accommodation form a major part of the local visitor economy.

Dame Andrea previously said she was concerned about putting tourism jobs at risk and whether visitors could choose destinations elsewhere if Lincolnshire became more expensive.

She has now confirmed that, while she remains Mayor of Greater Lincolnshire and maintains her current position, the proposed levy will not be introduced across the region.

For visitors planning a future break in Skegness, that means there are currently no plans for an additional Greater Lincolnshire visitor levy to be added to the cost of their accommodation.