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Tourism officials in the UK are celebrating after a proposed bed tax failed to be introduced.

It had been seriously considered for some time that local authorities would be given the right to introduce a tax which could be levied against people staying in hotels and bed and breakfasts.

People working within the industry were up in arms over the idea and claimed that it had the potential to kill tourism in some regions and bankrupt a number of businesses.

Now a decision has been reached and the controversial tax will not be introduced.

'For the last three years, we have consistently pointed out the difficulties of introducing a bed tax and emphasised how damaging it would be to the UK tourism economy,' said Bob Cotton, chief executive of the British Hospitality Association.

'We are delighted that common sense has prevailed. Overseas and domestic visitors staying in the UK already have to pay one of the highest rates of VAT in the European Community, which puts the industry at a price disadvantage to competing countries.

'Raising additional sums of money through a tax on tourists, which will not be reinvested in the industry, would further damage UK competitiveness,' he added.

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