A POSSIBLE bed-tax on tourists wanting to enjoy the delights of the Teignbridge coastline could drastically affect visitor numbers. A new report by Sir Michael Lyons, commissioned by the Audit Commission, is considering the introduction of the tax on UK tourists. It could mean an additional 2.1 per cent increase on the 17.5 VAT they already pay to stay in the area's holiday accommodation. Teignmouth hotelier Alex Stewart, who runs the Bay Hotel, said: 'The bed tax will drive British tourists away from Britain. 'The larger hotels and national chains may be able to withstand a possible 2.1 per cent increase, but smaller hotels will not be able to do so. If the profits of small hotels are squeezed any further, they will cut and run. Mr Stewart was the former managing director, Operations Division, of Thistle Hotels in London. Teignbridge MP Richard Younger-Ross is consulting with businesses that rely on tourism. He wants to collect views about the effect it will have on their businesses. Mr Younger-Ross said: 'I am convinced that this move would do more harm than good. In the past other countries have levied a bed tax only to repeal it after finding a decline in visitor numbers. 'Tourism is very competitive and Britain already has the second highest rate of taxation on tourists of any European country. There is every possibility that such a move will drive people to holiday elsewhere,' he said.
