Market performance

Savills insight 🔍

During 2025, most leisure markets experienced a slow but steady recovery, with operators that innovate and respond proactively to tourism and leisure trends well placed for long-term success. This Spotlight reviews the visitor attraction, holiday accommodation and weddings markets, highlighting trends and insights that align with the overarching themes outlined in Savills Spotlight on Tourism, Leisure and Events 2025.

Continued interest in authentic experiences, wellness and sustainability is creating areas for growth, particularly for rural operators, where natural landscapes, heritage and slower-paced environments provide an advantage. Growing demand for nature-based experiences, such as wildlife watching, outdoor adventure and conservation-led activities also represent a significant opportunity for rural landowners.

According to the latest Defra Farm Business Survey, 72% of farm businesses across England had some diversified activity in 2024/25. This is a 10% increase since 2014/15. With unused buildings, distinctive landscapes and environmental assets, farms and estates are naturally equipped to diversify into activity experiences, holiday accommodation and commercial rentals.

Scotland will host the Global Agritourism Conference this year, and Scottish Agritourism estimates the sector in Scotland to be worth £293 million. The strategy of turning existing farm assets into visitor experiences is delivering significant economic benefits and strengthens rural communities through increased local spending.

Although consumer demand is generally stable across all sectors, many operators are increasingly concerned about the viability of their tourism, leisure and event businesses. Costs are the biggest challenge for operators. Increases in business rates, the national minimum wage and employers’ National Insurance (NI) have significantly impacted these businesses, particularly those that rely on large numbers of staff to deliver their service. Furthermore, attracting and retaining good permanent and seasonal staff in the leisure and hospitality sectors is a major challenge. Against this backdrop, new legislation and regulations are also seen as a hindrance, with short-term let licensing and visitor levies either in place or looming for many.

TOP TAKEAWAYS

1. Operators face rising costs and tighter regulation, yet slow recovery and emerging trends offer long-term opportunities.
2. High-quality, personalised and memorable experiences increasingly determine demand and support growth within the visitor attraction, accommodation and wedding markets.
3. Rural businesses are naturally equipped to diversify, using unused buildings, distinctive landscapes and environmental assets to meet rising demand for nature-based tourism, activity experiences, holiday accommodation and commercial rentals.

Value of UK tourism

A report, “Economic Value of Tourism in the UK”, published by VisitBritain in January 2026, indicates that tourism supports 2.4 million jobs and is worth £147 billion annually to the UK, equivalent to 5% of the national economy. The report forecasts the sector's value will reach £161 billion (in 2024 prices) by 2030.

Industry news

Visitor levy introduction across the UK

The UK does not have a national tourist tax. Instead, devolved nations set their own visitor levies on overnight stays.

Scotland: The Visitor Levy (Scotland) Act 2024 gives councils the power to charge an overnight levy. The City of Edinburgh Council voted to introduce a 5% levy from 24 July 2026, capped at five nights. Glasgow City Council will charge 5% from 25 January 2027, and Aberdeen City Council will charge 7% from 1 April 2027. Other councils, including Argyll & Bute and the Highlands, have decided not to charge an overnight levy at this time. The Visitor Levy (Amendment) (Scotland) Bill was introduced in January 2026 to give local authorities further flexibility in designing and implementing the levy, including the ability to impose fixed-amount charges. The Bill is progressing through parliament with the expectation that it will be passed later in 2026.

Wales: Wales passed the Visitor Accommodation (Register and Levy) Bill in 2025. The earliest date on which councils can introduce an overnight levy is 1 April 2027. The Bill includes proposed rates of £1.30 per person per night for hotels and similar stays, and £0.75 per person per night for hostels and campsites. A compulsory registration system for visitor accommodation will also be introduced from autumn 2026.

England: England’s consultation to give mayoral authorities the power to introduce discretionary local visitor levies closed on 18 February 2026. While powers are being explored, the tourism industry has voiced strong opposition, with the World Travel and Tourism Council citing concerns about reduced visitor spending and wider economic impacts. However, Manchester and Liverpool already operate overnight visitor levies which are administered voluntarily by hotels, rather than imposed by the government.

Martyn’s Law

Martyn’s Law (the Terrorism (Protection of Premises) Act 2025), named in memory of Manchester Arena victim Martyn Hett, entered a minimum 24-month implementation period in April 2025. Designed to improve how venues, events and public spaces prepare for and respond to the risk of terrorist attacks, the Act places more demanding requirements on larger events and higher-capacity venues. The Act introduces a two-tier system: the Standard Tier (200–799 people) and the Enhanced Tier (800+ people). The Security Industry Authority has been appointed as the regulator, working towards the Act being fully operational in spring 2027.

Non-domestic rates for Scotland’s self-catering sector

Recent updates to Scotland’s non-domestic rates (NDR) system have tightened the evidence required for self-catering properties. To remain on the valuation roll, properties must show they were available for 140 nights and let for 70, or they will revert to the Council Tax regime. Following steep increases in rateable values in 2026, the Scottish Government introduced a sector-specific Revaluation Transitional Relief, capping NDR increases at 15% per year until 2029. A time-limited window allows operators to submit missing evidence for 2024/25, and, from April 2026, evidence for any financial year.

Short-term let licences in Scotland

Short-term let licences remain mandatory in Scotland for any operator offering short‑stay accommodation. A licence is required before taking bookings, and properties must meet mandatory safety standards, including fire, gas and electrical compliance and hold public liability insurance. Operating without a licence can result in fines of up to £2,500 and a one‑year ban. Amendments introduced in 2024 allow licences to be transferred to a new owner upon sale, enable developers to apply for provisional licences during construction, and increase flexibility around temporary exemptions.

Short-term let planning permission in England

England is moving towards a more regulated system for short-term and holiday lets based on three main pillars:

1. A proposed new C5 planning use class for short-term and holiday lets, to bring clarity to when a change of use requires planning permission. At the time of writing, there is no confirmed implementation date.
2. A compulsory national registration system, expected to go live in 2026, requiring all short-term and holiday lets to register and display a unique registration number.
3. Stronger local council powers to regulate short-term and holiday lets, particularly in areas experiencing high tourism or housing pressure. This includes planning enforcement and the ability to require planning permission in defined locations where this is considered necessary to protect local communities and housing supply.

Energy Performance Certificates (EPC) for short-term rentals

Reforms to EPCs will affect England, Wales and Scotland in different ways. England and Wales will move away from the current single A to G EPC rating and towards a new system with multiple metrics. Implementation has been delayed, and the existing EPC system will remain in place until at least the second half of 2027, rather than October 2026. Until the UK-wide timetable is confirmed, similar reforms to EPC methodology have also been delayed in Scotland, with the current EPC framework continuing to apply.

Trends and Insights

_{¹ VisitBritain, ² Scottish Agritourism, ³ DEFRA}

_{Read the articles within Spotlight: Tourism, Leisure & Events below.}