City’s hotels sector to vote on introducing £2 nightly guest charge
Liverpool’s hotel sector could charge overnight guests £2 a night as soon as June 2025.
Hotels and serviced apartments operating in the city are being asked to vote on a new City Visitor Charge as part of the city’s Accommodation BID.
The proposal would see the charge – which would be administered by hotels – going directly into the visitor economy and helping to support its growth and development.
It would also go towards improving the public realm, including street cleaning. This would relieve pressure on the public purse and would ensure that the hotel sector would get a say on how the funds were spent, helping to drive a more sustainable and viable visitor economy in the future.
Accommodation BIDs are currently the only mechanism for the introduction of Visitor Charges. This allows for a clear purpose in the investment of the funding, ensuring a clear management and transparency for its use for key aims.
The City Visitor Charge would see a £2 levy (plus VAT) added onto each overnight stay in the city.
The levy generated would support business conferences and destination marketing and make a significant impact in bringing major events to the city that generate overnight stays, alongside other BID services including street cleaning, improving the public realm and targeted marketing campaigns.
The Accommodation BID, which began operating in January 2023, was voted for by 85% of Liverpool’s hotels and serviced apartments. Currently, a levy is paid on venues with a rateable value above £45,000.
Part of that levy goes towards supporting a subvention fund, aimed at attracting major events to Liverpool that encourage overnight stays, for example the Labour Party Conference, business forums, exhibitions and health events.
The ABID has invested £2.2m into the city economy, and measuring 12 events across its first 18 months, Liverpool’s Accommodation BID has helped to bring £77m of economic impact into the city. Four of the major events brought to the city generated more than 90% occupancy for hotels within the ABID.
Instead of seeing a levy generating £900,000 per annum , a £2 City Visitor Charge could bring £6.7m, over two years. towards supporting the city’s visitor economy.
The Accommodation BID is overseen by an operating board made up of key hoteliers and accommodation providers and an executive board. It is managed by Liverpool BID Company.
Bill Addy, CEO of Liverpool BID Company, said: “We have been talking with the sector very closely and a City Visitor Charge is something we want them to decide.
“It is hotels and serviced accommodation providers who would be administering it so, therefore, they should have the final say.
“The method we are proposing reflects similar models across European cities which work successfully and, if replicated in Liverpool, will translate overnight stays into major investment in attracting world leading and world beating events to the city.”
Marcus Magee, Chair of Liverpool’s Accommodation BID, said: “The change in the model is necessary to help the city bring in more events, and Liverpool to compete with neighbouring cities. We are in a competitive visitor economy and it is vital that Liverpool holds its own.”
The majority of funds generated would be spent on a combination of a subvention fund (65%) and destination marketing (21%).
