Liverpool hotels to introduce £2 overnight tax from June following ABID ballot

Liverpool’s hotels and serviced apartments have voted to introduce a £2 overnight charge to guests and those staying in the city.

The proposals, put forward as an alteration ballot through the city’s Accommodation BID, were supported by a vote undertaken by the city’s 83 hotels.

A £2 City Visitor Charge is projected to bring in £9.2m over two years, of which £6.7m will go towards supporting the city’s visitor economy through a subvention fund.

The subvention could convert into a potential £220m total economic impact being spent in the city’s visitor economy through accommodation and hospitality, based on the economic impact of other events supported by the ABID, including the Labour Party Conference.

The remaining amount will support destination marketing and visitor economy. 

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.

The levy generated would be administered by the Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city.

It is overseen by an industry board. An executive board also manages the strategy and business planning of the ABID.

The Accommodation BID is managed by Liverpool BID Company, which includes two business improvement districts in the city centre and represents more than 800 businesses in the city.

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 those funds. 

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, helping to create a circular and sustainable visitor economy, relieving pressure on the public purse.

It 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 improving the public realm and targeted marketing campaigns.

The Accommodation BID began operating in January 2023. 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.

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.

“The circular visitor economy is one that becomes sustainable, in that it is able to invest towards the aspects it needs to make itself successful.”

He added: “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.”

Marcus Magee, chair of Liverpool’s Accommodation BID, said: “This is a major step in enabling the hospitality sector to have a say and an influence in regards to the city’s decision making around the visitor economy, which is crucial to the vibrancy and economy of the city.

“The Business Improvement District structure allows for a clear and transparent approach to the use of investment.”

Cllr Harry Doyle, Liverpool City Council’s cabinet member for culture and visitor economy, previously lobbied for the levy and said: “The ‘Yes’ vote for an extension of the BID to create a visitor charge is a great vote of confidence in the growth of our successful visitor economy. I want to thank all the businesses that participated in the ballot.

“Their positive support delivers a huge boost to Liverpool’s tourism sector and our major events programme, supporting jobs and investment to benefit local people, and showing how Liverpool continues to offer a warm welcome to visitors from around the world.”

He added: “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.”

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