London's mayor, Sadiq Khan, has announced plans to introduce a tourist tax on hotels in the city, with the rate set at up to 5% of the room cost. The proposal comes after business leaders advocated for a flat-rate tax, but Khan has opted for a percentage-based approach, aligning with current hotel pricing structures. The tax aims to generate additional revenue for local services and infrastructure. Details on implementation and exact rates remain under review, with officials expected to finalize the policy in the coming months. The move has sparked mixed reactions from hoteliers and tourism stakeholders, with some supporting the initiative and others expressing concerns over potential impacts on visitor numbers.