Major UK city to charge visitors £2 ‘tourist tax' for overnight stays in weeks

Scottish Sun

25-04-2025

The city was the UK's fifth-most visited in 2023
TAXING TIMES Major UK city to charge visitors £2 'tourist tax' for overnight stays in weeks
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VISITORS are set to have to pay a £2 tax to visit a major UK city in just weeks after hotel owners voted in favour of introducing one.
People staying overnight in Liverpool will have to pay the "tourist tax" - which could raise millions each year - after it's introduced in June.
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A £2 'tourist tax' is set to be introduced in Liverpool in June
Credit: Alamy
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Many hotel owners in the city, which attracted the fifth-highest number of visitors in 2023, voted in favour of introducing the levy
Credit: Alamy
The vote was passed during a ballot by Accommodation BID, which represents 83 hotels and a number of serviced apartment providers in the city.
Dubbed the £2 City Visitor Charge, the group predicts the levy could raise as much as £9.2 million over two years, of which around 73 per cent will go towards supporting Liverpool's visitor economy.
Liverpool BID Company, which manages Accommodation BID, said the tax would "turbo charge" the tourism and visitor economy in the UK's fifth largest city.
Accommodation providers and hotels will manage and administer the charge, making customers pay either when they check in or when their stay is over.
Money raised under the scheme will be administered by Accommodation BID, which includes two business improvement districts in the city centre and represents more than 800 companies.
Of the 83 hotels balloted about the charge, 59 per cent were in favour, from a turnout of 53 per cent - meaning just 26 of the establishments queried approved of the scheme, with 18 opposed.
Response to the news has been mixed from the public, with some warning it will deter much-needed visitors away from the city.
One person who disagreed with the scheme wrote on X: "This tourist tax might deter visitors when Liverpool's already struggling to attract tourists.
"Seems like a risky move for a city that could use the tourism boost."
Another added: "I love a break in Liverpool but that's me done with it now they're going to put a £2 tourist tax on visitors.
TRAVEL BLOW holidaymakers could be hit with new tourist tax when staying in UK campsires, hotels and B&Bs
"I live in the UK & shouldn't have to pay a tax to go to a UK city."
Liverpool was the fifth-most visited city in the UK in 2023, according to the most recently available data, attracting around 900,000 visitors.
Despite the backlash, some have praised the scheme, saying it should be extended to other cities and areas too.
Writing on X, one said: "These things help cities thrive, it's a bit of extra money in the pot for services.
"That's why I personally support it.
"Amsterdam's got one, Paris has got one - London should introduce one."
Marcus Magee, chair of Liverpool's Accommodation BID, said the tax would be "crucial to the vibrancy and economy of the city", adding it was a major step towards the city's hospitality sector having a say and influence on decisions about the visitor economy.
Bill Addy, chief executive of Liverpool BID Company, said Liverpool would attract bigger events with the levy, which would lead to more visitors and money coming into the city, reports BBC News.
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.
"The evidence of other European cities suggests this model will translate overnight stays into major investment, so that we can convert that into world-leading and world-beating events."
Hospitality bosses slam plans to introduce compulsory tourist tax across England
HOSPITALITY bosses have slammed plans to introduce a tourist tax across England.
Andy Burnham, Greater Manchester Mayor, in February suggested that an existing optional fee in some Manchester city centre hotels should be replaced with a compulsory charge for visitors.
Mr Burnham said he was pushing for the Government to introduce a 'proper levy', as European hotspots such as Spain's Barcelona and Italy's Venice have done.
But Kate Nicholls, chief executive of UKHospitality, fears it would be another blow to Britain's battered tourism industry.
She said: 'This isn't just about overseas visitors, it would mean extra charges for people staying in budget places including Travelodges, Premier Inns and seaside caravans.
'The risk is the industry is taxed out of existence.'
Manchester raised £2.8million last year from its city visitor charge of £1 in certain city centre hotels. Members of the Manchester Business Improvement District vote on how funds are used locally.
But a national levy would mean the Government would decide how funds are raised and spent.
Liverpool is not the first major city in the UK to announce a "tourist tax", as nearby Manchester did so in April 2023.
The City Visitor Charge there costs £1 per room per night, and raised around £2.8 million in its first year.
However, there have been fears a tourist tax could be placed nationwide on campsites, hotels and B&Bs.
The government was reportedly considering the move in January, as it could raise an estimated £1 billion for the UK's struggling economy.
Starting from £1 per person at a campsite, and escalating to £15 per person at a five-star hotel, the scheme could deter some tourists from visiting.
Both UK residents and holidaymakers from abroad would be required to pay the new tax, which will make staycations a little bit more expensive.
The government, though, hopes the tax will raise a significant amount of money for public spending.
According to the TaxPayer's Alliance, the move has the potential to raise an estimated £1 billion a year.