Latest news with #visitorlevy
The Independent
4 days ago
- Business
- The Independent
Cruise Scotland warns government against ‘damaging' levy proposal
The Scottish cruise industry has lashed out at the government's proposals to introduce a cruise ship levy over fears it would deter cruises from visiting its ports. The Scottish Government announced earlier this year that it is considering a proposal to allow local authorities to create a visitor levy on cruise ships docking at its ports. During the consultation, Cruise Scotland, a membership-based marketing organisation that represents key cruise industry players, issued a warning to the Scottish Government that the levy could damage the sector. The organisation expressed its concern in its formal submission to the government consultation on implementing a cruise ship levy, saying that cruises will become discouraged from visiting Scottish ports. 'Scotland must decide whether it wants to attract or deter a sector that delivers over £130m annually to the national economy and sustains jobs in some of the most remote and economically vulnerable communities,' Rob Mason, chair of Cruise Scotland, said. Mr Mason also claimed that if the levy was mishandled, it could result in job losses, cause a slump in local business growth and disrupt a tourism model that benefits communities. Cruise Scotland said that the government's plans are so far too ambiguous, stating that prolonged uncertainty regarding the levy is 'damaging' as cruise operators cannot plan accordingly. The group also warned against creating devolved powers for individual councils to implement the levy, as it claimed this would create competition between areas and would require port authorities to function as tax collectors. 'We must remember that this is a movable market that does not need to come to Scotland, despite all we have to offer, and neighbouring regions in the North Atlantic and Northern Europe are strongly positioned to benefit from any displacement,' Mr Mason added. While the chair said Cruise Scotland 'fully acknowledges' the need for targeted investment, he called upon the government to be more transparent in its decisions around the levy and asked for 'close collaboration' with the industry. The organisation said it remains engaged in discussions with policymakers. Cruise Scotland says that 1.1 million passengers visited Scottish ports in 2024, contributing over £130 million to local businesses and communities. Kirsty Hutchison, Cruise Scotland's market development manager, said that this number could see a drop if a levy were implemented. 'Introducing a levy could send the wrong signal to cruise operators at a time when Scotland is successfully growing its reputation as a responsible and attractive destination,' Ms Hutchinson said. 'The evidence from other markets suggests that a levy risks reducing visitor numbers, along with the significant revenue and opportunity they bring.' The levy has received support in other areas. The Scottish Greens are in favour of the potential to cut climate emissions, while the Orkney Islands Council said it would welcome the revenue it would generate for the communities. The consultation on the levy has now closed, and responses will be analysed over the summer to inform ministers the next steps they can take.
The Independent
5 days ago
- Business
- The Independent
UK mayors call for tourism tax
Mayors across England are advocating for the devolution of powers to local authorities to implement visitor levies on overnight stays, aiming to boost tourist infrastructure and regional growth. The proposed visitor levy, similar to those in Scotland and Wales, would involve a small charge on overnight accommodations, with Liverpool City Region estimating it could generate nearly £11 million annually. Mayors argue that these levies would unlock vital funding for tourism and cultural infrastructure, reducing dependence on central government funding. While cities like Liverpool and Manchester have introduced tourism-based Business Improvement Districts (BIDs) as a workaround, they seek devolved powers to create legally-backed visitor levies. The campaign is supported by mayors from Liverpool City Region, Greater Manchester, London, the North East, the West Midlands, and West Yorkshire, who collectively attract millions of visitors and contribute billions to the UK economy.
The Independent
5 days ago
- Business
- The Independent
Let us tax visitors on overnight stays in England, mayors say
A coalition of mayors has called for powers to be given to local authorities to create visitor levies across England, in an attempt to boost tourist infrastructure and regional growth. The group of mayors from around the country, led by Liverpool City Region Mayor Steve Rotheram, is calling on the government to grant devolved powers to allow regions to create a visitor levy, which could see a small charge added to overnight stays. Mr Rotheram said the overnight charges are 'the kind most of us wouldn't think twice about when travelling abroad' and 'would give us the power to reinvest directly into the things that make our area so special'. Other mayors have echoed his sentiment. Sadiq Khan, the mayor of London, said: 'A modest overnight accommodation levy, similar to other international cities, would boost our economy, deliver growth and help cement London's reputation as a global tourism and business destination.' A similar law is already in place in Scotland, passed in 2024, which allows councils to tax overnight accommodation if they wish to do so. Edinburgh has already made headway with this power, voting in January to add a five per cent surcharge on visitors' overnight stays by 2026. A bill has also been proposed by Welsh lawmakers to introduce a small visitor levy that could see visitors to the country paying up to £1.25 per night by 2027. The mayors say England is 'at risk of falling behind' as Scotland and Wales move ahead with their own tourism levies, so are calling for rapid action from the central government. The mayors have argued that the powers to create a visitor levy would unlock 'vital' funding for tourism and cultural infrastructure and drive regional growth, as well as reduce dependence on funding from the central government. English legislation does not allow cities to create a visitor levy; however, using legal workarounds has meant Liverpool and Manchester have introduced a form of tourism levy. The city councils both introduced a tourism-based Business Improvement District (BID), using existing legal power to establish a form of tourist tax that allows hoteliers to charge £1 (in Manchester) or £2 (in Liverpool) per night as part of a 'city visitor charge'. The mayors said that the BID visitor levy in Liverpool has received strong backing, while in Manchester, a recent survey revealed 70 per cent of tourists are willing to pay a small charge if it is used to visibly enhance tourism services. However, the local authorities are hoping to see devolved powers to create visitor levies written into law. The campaign is backed by the mayors of the Liverpool City Region, Greater Manchester, London, the North East, the West Midlands and West Yorkshire. 'These regions collectively attract hundreds of millions of visitors annually and contribute billions to the UK economy,' the group said. 'Yet none currently benefit from a dedicated funding stream to reinvest in tourism resilience and growth.' The Liverpool City Region predicts that a visitor levy could raise nearly £11 million per year for the area from the over 60 million visitors it receives annually. Greater Manchester says that a £1 to £5 overnight tax could raise between £8 million and £40 million per year, which could help fund key infrastructures such as the regeneration of Old Trafford or airport development. Over in the capital, the group said tourism accounts for one in seven jobs and nearly 12 per cent of London's economy, whereas visitor economies stand at £6.1 billion in the North East and £16.3 billion in Birmingham.
The Guardian
02-06-2025
- Business
- The Guardian
English mayors push for visitor levy to boost income from tourism
A coalition of mayors from across England are urging the government to allow local authorities to bring in a Barcelona-style visitor levy to generate income from tourism. The group, led by the Liverpool city region mayor, Steve Rotheram, argues that a visitor levy would unlock vital funding for tourism and cultural infrastructure, empower regional growth and reduce dependence on central government funding. The letter to the culture secretary, Lisa Nandy, and the chancellor, Rachel Reeves, has been co-signed by the Greater Manchester mayor, Andy Burnham; the mayor of London, Sadiq Khan; the north-east mayor, Kim McGuinness; Richard Parker, the mayor of the West Midlands; and the West Yorkshire mayor, Tracy Brabin. They say provisions could be made in the forthcoming English devolution bill, or in a specific finance bill, to give local authorities the freedom to design and introduce a locally administered visitor levy. It would mean cities they represent, including Liverpool, Manchester, Leeds, Newcastle, Birmingham and London, could introduce charges to reap direct benefits from tourism. Many European cities have similar levies in place, including Venice, Lisbon and Amsterdam, as do Spain's Balearic Islands. In the Liverpool city region, which hosts more than 60 million visitors annually, a visitor levy could raise nearly £11m a year, the mayors said. The city hosted Eurovision in 2023, which generated £54m in direct economic impact. If a £1- to £5-a-night levy were introduced in Greater Manchester, it could raise between £8m and £40m a year, which could go towards infrastructure projects such as the regeneration of Old Trafford or airport development, the mayors said. The mayors said funds raised through a visitor levy would be ringfenced for local reinvestment, and said the government needed to act urgently, as devolved governments in Scotland and Wales are moving ahead with their own tourism levies, leaving English regions at risk of falling behind. 'The Liverpool city region is a global icon of creativity, culture and character – attracting more than 60 million visitors every year and supporting a £6.25bn visitor economy,' Rotheram said. 'That's something to be incredibly proud of – but it also comes with pressures on our infrastructure and services. 'A small charge on overnight stays – the kind most of us wouldn't think twice about when travelling abroad – would give us the power to reinvest directly into the things that make our area so special.' Burnham added: 'At a time when national resources are under real pressure, a modest visitor levy – something we all pay in other parts of Europe – offers a fair and sustainable way to support our local services.' McGuinness said: 'A local tourism tax is so mainstream across the rest of the world you barely notice it, so it should not be a big step here in the UK.' Last year, a report from the landscape charity Friends of the Lake District made a similar call. The organisation's chief executive, Mike Hill, said: 'In most of the places around the world that we've looked at that have brought in some sort of tourism levy, tourism numbers have actually increased, because the place gets better.'
