A major UK city will soon charge visitors a ‘tourist tax’ for overnight breaks in an effort to raise millions each year.
Visitors taking an overnight city break in Liverpool will be slammed with the charge in June after hotel owners voted in favour in a ballot run by Accommodation Business Improvement District (BID).
Customers will be faced with the so-called £2 Visitor Charge when checking in or out as hotels and accommodation providers will be responsible for levying it.
It is predicted to raise as much as £9.2million in just two years, according to Accommodation BID, which represents 83 hotels and several serviced apartment providers in Liverpool.
Around 73 per cent of that will be injected into the city’s tourism sector. Accommodation BID will administer the money raised, the Sun reported.
It is expected to ‘turbo charge’ the visitor economy in the fifth largest city in the UK, according to Liverpool BID Company, which manages Accommodation BID along with another BID.
Of the 83 hotels asked to vote on the move, 59 per cent supported it – but this was only with a 53 per cent turnout, meaning just 26 businesses are in favour, versus 18 opponents.
People took to social media to express their outrage about the development, set to hit during the summer months, a peak time for tourism.
One concerned user said on X: ‘With such a tight vote, shouldn’t [have] gone through and certainly [not] with such a low turnout.’
Another said: ‘Of course they did. Money for nothing! Same room, same service but £2 per night more.’
Someone else called introducing it in June a ‘joke’: ‘It’s going to be a lot of work for businesses to set up, let alone communicating it to folk who have already booked.’
People questioned how the cash will be spent, saying, ‘More money that will vanish into thin air’, and, ‘Where does the £2 tourist levy charge go’?
Others seemed put off entirely: ‘All good, won’t ever visit again.’
Marcus Magee, Accommodation BID chair, told the BBC the charge would help Liverpool’s hospitality sector have more of a voice in discussions about the city’s visitor economy.
This, he added, was ‘crucial to the vibrancy and economy of the city’.
Bill Addy, chief executive of Liverpool BID Company – whose two city centre BIDs include more than 800 companies – said evidence from other cities in Europe suggests such charges ‘translate overnight stays into major investment’.
This, he said, could then ‘convert’ into Liverpool being able to lead internationally renowned events.
He added: ‘We have always said the industry should have their say on whether they want this levy to come in, as they are administering it.’
It comes after Manchester introduced a ‘tourist tax’ in 2023, becoming the first British city to do so.
Levying £1 per room, per night, the City Visitor Charge raised around £2.8million in its first year alone.