Explainer: What is Liverpool's new Hotel Levy and how much will it cost?
Visitors to Liverpool will soon see a £2-a-night increase in the price of hotel rooms after a plan to introduce a 'hotel levy' in the city was approved by local businesses.
The idea was put to a vote for 83 hotels in the city. Today the city's Business Improvement District confirmed the vote had passed. The change was supported by 26 votes to 18, with a turnout of 53% turnout.
Laura Delaney of The Municipal Hotel and Spa says that guests will be well informed about the extra charge: "We'll have QR codes situated across the hotels, they can find out a wee bit more about what it is and why it is there, and they'll be presented with the bill at the end, it'll be added to their bill"
Helen Roberts is the dual General Manager at Holliday Inn Express for Liverpool and Manchester, and she says it is a positive move which the city needs: 'There's a lot that the BID does already in terms of improving the public realm, security and major events, but Liverpool needs this to help it to thrive.
"Liverpool isn't the biggest city but it does need to compete on an international stage. We have the same model in Manchester and there has been little or no reaction from guests.
"The majority are used to it from their visits to European cities so there has been no negativity'.
But what is it, and how will it work?
What is a hotel levy?
The levy idea is masterminded and managed by Liverpool's Accommodation Business Improvement District.
The £2 City Visitor Charge is projected to bring in £9.2million over two years, of which £6.7 million will go towards supporting the city's visitor economy.
The business improvement district model is the only one that allows for an overnight charge to be implemented in England. It allows for the raising of a levy, under government legislation, and requires a clear and transparent business plan for the proposed use of the funds.
Those behind the charge say it'll also help to bring major events to the city.
Bill Addy, CEO of Liverpool BID Company, said: 'This £2 a night levy will be to help turbo charge Liverpool's tourism and visitor economy, helping the city attract bigger events who bring people to the city.
"We have always said that 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.'
How will it work?
The £2 charge will be managed and administered by hotels and serviced accommodation, either when guests check in or at the end of their stay. It'll be payable by anybody checking in, regardless of where they're from.
It'll only apply in city centre hotels which are part of Liverpool's Accommodation Business Improvement District (ABID).
The money generated will be administered by the Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city, which is is overseen by an industry board.
The Accommodation BID is managed by Liverpool BID Company, which includes two business improvement districts in the city centre and represents over 800 businesses in the city.
When will it come into force?
The charge will come into effect from June 1 2025 on hotels or serviced accommodation which are subject to the levy (those businesses with a rateable value of £45,000 or above).
It comes after growing calls from Liverpool City Council for the city to introduce a full tourism tax, similar to charges being discussed in Scotland.
Glaswegians are currently being consulted on plans, which would see tourists and other visitors pay an additional 5% on the price of overnight accommodation.
Councillor Harry Doyle, Liverpool City Council's Cabinet member for Culture and Visitor Economy, said: 'This a positive step and lays solid foundations in our endeavour to formalise the establishment of a sustainable Tourism Tax, akin to what is being looked at in Glasgow and has already been introduced in other major European cities, which would be used to further strengthen our tourism offer.'
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