‘I will fight it tooth and nail’ - MP fears impact of proposed 'holiday tax' as Bognor celebrates opening of new seafront hotel

Following confirmation in the King’s Speech that ministers will bring forward legislation for a so-called ‘tourist tax’, Matt Rake – resort director at Butlin's in Bognor Regis – said the move would have ‘clear consequences’ for businesses and working families.

Speaking at the launch of a new 116-room hotel in Bognor Regis, Ms Griffiths echoed those fears. She said the Premier Inn development represented a major ‘vote of confidence’ in the town and highlighted the importance of supporting businesses and encouraging visitors to stay overnight.

However, she warned that introducing additional costs for tourists could undermine momentum at a time when many businesses were already facing economic pressures.

“I struggle to understand why this government thinks the answer to everything is to levy tax, when all of the evidence over the last two years shows that you shrink economies by adding tax,” she said.

“I’m absolutely pushing hard against the government and trying to raise the profile of this to get it axed. It is an iniquitous, unfair and unnecessary tax that will push down visitor numbers if we’re not careful.”

The comments come amid growing debate over proposals for local overnight visitor levies, sometimes referred to as a ‘holiday tax’, which critics argue could discourage domestic tourism and place additional strain on coastal economies.

Ms Griffiths said concerns were being raised not only by major operators, but also by smaller independent businesses.

“Businesses like Premier Inn – and possibly Butlin’s as well – are saying this could become a problem,” she said.

“And if they’re worried about it, imagine what smaller hotels like the Navigator Hotel are thinking. They are terrified about it.

“We have a very fragile economy right now, nationally as well as locally, and each time you add another tax, someone else stays at home. I will fight it tooth and nail.”

The MP linked those concerns to wider feedback she said she had been hearing from businesses across Bognor Regis, Littlehampton and surrounding villages.

In a recent social media post following the King’s Speech debate, Ms Griffiths said employers were increasingly worried about rising costs, uncertainty and the impact government policy was having on confidence and investment.

“Coastal communities like ours depend on small and medium-sized businesses thriving,” she wrote.

“When firms become more cautious about hiring and investment, it is often young people and those starting out in work who feel the impact first.”

Despite her concerns over the proposed levy, Ms Griffiths said the opening of the new Premier Inn showed there was still strong confidence in Bognor Regis and its future potential.

“I am absolutely thrilled because this is an absolute vote of confidence in Bognor Regis from a major national brand,” she said.

“What we heard from Premier Inn today is that they are expecting 47,000 people a year to come and stay here, and that each room would generate £140 a night into the local economy, so that is fantastic news for local businesses here.”

She also highlighted wider regeneration projects underway in the town, including investment in the Alexander Theatre and ongoing work to improve the town centre.

“You only have to look out of the window to know that we have world-class sea views, a fantastic seafront, an extraordinary town and great independent local shops,” she said.

“But to really grow the local economy, you need people to be able to stay the night, not just come as day visitors. That’s why having this Premier Inn here – for people to come on holiday and on business – is so important.

"We were all so disappointed, a couple of years ago, when the Which? magazine chose not to see the positives right in front of them. But it happened just after I got elected and I really took it as a personal challenge to amplify and share everything that is good that’s happening here.”

During her speech at the launch event, Ms Griffiths described the hotel as an ‘anchor project’, that could help drive wider regeneration across the seafront and town centre.

“National brands like Premier Inn don’t invest on a whim,” she told guests. “They invest because they see opportunity, growth and long-term potential.”

She praised the role played by former Arun District Council leader Shaun Gunner, and councillors across all parties, in securing investment linked to the Alexandra Theatre regeneration project, and bringing forward the hotel development.

“We have the opportunity now to have a cultural centre, people coming to stay here, to be able to see shows, to go out in the town centre. It is such an important moment,” she said.

Ms Griffiths also highlighted the importance of overnight tourism to the local economy, arguing that extended stays – rather than day trips alone – would help support independent businesses throughout the year.

“Day trips are great, but overnight guests are what change the local economy,” she said.

“They buy dinner in our restaurants, they buy drinks in our pubs and they spend money in our independent shops.

“Hospitality is not a casual side industry for coastal towns. It is literally our economic lifeline.”

Closing her speech, Ms Griffiths thanked everyone involved in delivering the project and said she hoped visitors would leave with an ‘even better impression’ of the town.

“I hope it is the beginning of a highly successful future here in Bognor Regis,” she said.