Liverpool’s hotel bosses want answers from Metro Mayor Steve Rotheram before they sign up to a proposed “tourist tax.” It was confirmed last month regional mayors would be given the ability to administer the overnight visitor levy on hotel stays as part of Prime Minister Andy Burnham’s plan to move further power out of Westminster.
The proposals were first introduced in November last year by Keir Starmer's government. In Liverpool, this would become available after the expiration of an existing Accommodation BID next December which implements a £2 tariff.
Two key distinctions in new levy
Any new levy will feature two important distinctions – one operating for the entire city region and a levy for Airbnb-style properties. Hoteliers now want clarification on how the cash generated from any tourist tax will be ring-fenced to support the successful visitor economy.
When the proposals were confirmed in September, Mr Rotheram said a tourist tax could potentially raise up to £18m a year. The Metro Mayor added how the tariff could give the city region “more money to support the things that make our visitor economy such a success, while helping our businesses and communities to benefit from its continued growth.”
Current Accommodation BID model
The city’s hotels are currently part of an Accommodation Business Improvement District (ABID) which administers and manages a £2 overnight levy, per room per night. The Liverpool Model has been operating since last June and has generated more than £2m.
The ABID gives the city’s hotels a say in the investment and subvention fund. With every £2 raised, £82 is invested in the visitor economy.
The levy is used to support major events across sports, culture and conferencing. Events supported by the Accommodation BID are said to have generated more than £86 million for Liverpool’s economy.
Hoteliers seek clarity on protections
Now hotel bosses want clarity on the protections offered to them through the new scheme, any future governance model and support for administration of the new levy when it is introduced in 2028. Bill Addy, chief executive of Liverpool BID, said: “The Liverpool model is one that works, driven by and shaped by the private sector.
“Over the past 12 months, Liverpool’s operating ABID has been able to illustrate what a robust and working model can successfully implement and achieve. I hope that work will be done locally and regionally to define a sustainable devolved model that is as equally impactful and economically sound.
“The ABID has developed an established, industry-led mechanism for investing the levy income against the priorities, goals and objectives laid out in its Business Plan. In short, it is about converting visits into overnight stays, because people who stay overnight spend more money in the visitor economy.
“An industry led operating committee and three hotelier-led sub groups oversee the working of the ABID and its investment priorities.”
The Liverpool City Region Combined Authority declined to comment.
