13/11/2006 - New Clumber Park Owner Warns Of Imminent “Bed Tax” Threat

The new owner of the Nottinghamshire Clumber Park Hotel is urging the regional hospitality sector they must keep on fighting until the bell rings if they want to stop the introduction of the so-called “bed tax”.

Next month, (December) Sir Michael Lyons will publish an interim report into the future of local Government funding, and one idea being looked at is the introduction of a five to 10 per cent levy on overnight accommodation.

Bur Derek Macdonald, who bought the three-star Clumber Park Hotel, last month warns any new taxation would have dire and far reaching consequences for the hospitality and tourism industry.

The former Hilton and Champneys senior executive said: “We still have five weeks to lobby Sir Michael and persuade him a bed tax will do nothing but harm the hospitality sector.

“Guests already pay VAT on top of their room rates of 17.5 per cent and another five to 10 per cent on top of that will drive business away. And it won’t just affect hotels. It relates to anyone staying in overnight accommodation including bed and breakfasts, pubs and holiday lets.”

Mr Macdonald has now written to MP Patrick Mercer (Con, Newark) asking for his support in this matter and urging him to lobby Sir Michael Lyons on behalf of everyone in the district connected with the hospitality industry.. 

“I don’t think the public realise just what an impact this will have on business. We already have to compete against cheap flights abroad and a new tax is going to drive more people to go overseas for their holidays.”

Tourism already contributes £12bn a year to the Government coffers in tax, and adding an additional burden would severely hamper the industry.

Mr Macdonald added that every 1 per cent rise in hotel prices leads to a 1.4 per cent fall in inbound visitor numbers. A recent survey of consumers showed that a bed tax would put 64.5 per cent of them off holidaying in the UK, and would cause 77 per cent to reconsider the length of their stay.

Mr Macdonald and his partners in Clumber Park Hotel said: “It’s our intention to provide major investment to this hotel, as well as supporting local initiatives, which will enable us to offer guests services they haven’t experienced here before.”