Liverpool city councillor suggests tourism levy would benefit region’s visitor economy

Eurovision Village (Liverpool City Council)

Cllr Harry Doyle, Liverpool City Council’s Cabinet Member for Culture and Public Health, has thrown his support behind the introduction of a tourism levy for the Liverpool City Region.

It follows the recent announcement of Edinburgh’s successful introduction of a tourism levy and the announcement this week that BBC Radio 1’s Big Weekend will be coming to Liverpool in May.

Liverpool could emulate Manchester which raised around £2.8m from visitors to Manchester a year after the city became the first in the UK to launch a tourist tax in April 2023.

The City Visitor Charge, a £1 per room, per night fee, pays for measures aimed at attracting more visitors with funds spent on street cleaning and marketing campaigns, said Kumar Mishra, chairman of Manchester Accommodation BID.

Cllr Doyle says this offers a timely opportunity to consider the benefits that a similar tourism levy initiative would provide for Liverpool, its visitor economy and major events. 

Edinburgh’s visitor levy is projected to raise more than £100m by 2030. The planned charge – five per cent on overnight stays – will be reinvested directly into improving the city’s appeal, supporting destination marketing, and enhancing the visitor experience.

Similar models across Europe and beyond have demonstrated that tourists are willing to pay a small fee when they see its tangible benefits, says Cllr Doyle.

He said: “As Cabinet member for Culture I have always championed innovative ideas that balance economic growth with sustainable development. Tourism is the lifeblood of the city region, attracting millions of visitors annually, drawn by its rich cultural offering, musical heritage and world-class events.

“However, as tourism thrives, so do the pressures on our public services, infrastructure, and the environment.

“A tourism levy is not just a tool to generate revenue, but an investment in preserving and enhancing our city region for residents and visitors alike, ensuring we manage our region responsibly and sustainably.”

He added: “Here in Liverpool, a tourism levy could build on the innovative work of the Accommodation BID which currently is the mechanism used to collate funding in Liverpool for tourism from the hotels.

“Building on this foundation, it’s important that we discuss the opportunities of applying a visitors levy across different accommodation types and not just the hotels will bring and the openings the introduction of a tourism levy could present with city stakeholders and the private sector as the narrative continues to develop.

“Indeed the IPPR (Institute for Public Policy Research) think tank has suggested that a visitor levy is the type of fiscal devolution that could help Combined Authority areas such as the Liverpool City Region.”

He recognises the risks such a levy could create, particularly on tourism numbers, but countered that research shows that when funds are transparently reinvested into improving the visitor experience, tourists overwhelmingly support such levies.

He stressed that any scheme implemented would include representation from local businesses, communities, and industry stakeholders to ensure its fairness and effectiveness.

Cllr Doyle acknowledged that, at present, legislation does not allow for the introduction of a tourism tax in England, but said this might change with the upcoming English Devolution Bill.

He said: “This proposal is not about placing additional burdens on visitors, but about ensuring Liverpool and the wider city region remains a desirable destination.

“By reinvesting in our city, we can sustain a vibrant visitor economy that benefits everyone – from local businesses to residents who share their home with millions of tourists each year.

“Myself and council leader, Cllr Liam Robinson, are committed to exploring this idea in partnership with our Metro Mayor and neighbouring local authorities, businesses, and communities.

“Together, we can develop a model that ensures Liverpool and the city region thrives as a world class destination for generations to come.”

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