Mayor faces warning over impact of new tourist tax on region’s visitor economy

West of England Mayor Helen Godwin has insisted the region “should grab the chance” to introduce a tourist tax, despite warnings from parts of its hospitality industry that it would damage the visitor economy.

Under new Government plans, elected mayors will be given powers to introduce and set an Overnight Visitor Levy, charged as a percentage of accommodation costs.

West of England Mayor Helen Godwin. Image: West of England Mayoral Combined Authority/Freia Turland.

Mayor Godwin has been joined by the leaders of the four local authorities making up the West of England in her support for the levy – although they are stressing that funds raised from it should be ringfenced and spent where they are collected.

Godwin said: “We are used to paying a visitor levy ourselves when we go on holiday to other countries, and now is the time to look at making sure we can invest more in what matters through a small charge on overnight stays here – with common-sense exemptions where we need them.

“The West Country has such an exciting future. New-and-improved and upcoming attractions like the Bristol Zoo Project and Aviva Arena can, with continued backing, be joined by more top-quality sites like the Birnbeck Pier in Weston-super-Mare and Bath Fashion Museum.”

She said she knew local people also wanted to see further improvements to the region’s transport network, particularly its buses.

Birnbeck Pier, Weston-super-Mare

“More late-night services would help more people enjoy what our region has to offer – and enable workers to get home more easily – and so would some more funding for public spaces including in central Bath and Bristol, alongside new support for the sectors that support tourism,” she added.

“Things like this become possible sooner if we raise new funding through an overnight visitor levy. We should grab the chance to take more control of our future with both hands, because a few quid here and there can add up to some big change.”

But hoteliers in Bristol say they fear the levy could do more harm than good and possibly prevent people from visiting the city.

Pramod Shaw, deputy chair of he Bristol Hoteliers Association (BHA) – which represents 40 hotels in and around the city with around 4,000 rooms between them – said the group was not opposed to investment in Bristol.

“Quite the opposite; we love this city and are proud to represent it. But we have serious questions which must be answered before any so-called ‘tourist tax’ is introduced, and we intend to make sure those questions are heard loud and clear.” he added.

“Our industry has already absorbed significant financial pressures in recent years – soaring energy costs, increases in the National Living Wage and higher employer National Insurance contributions, which have all taken their toll.

“The Overnight Visitor Levy Bill has reignited fury across the business travel and hospitality industries, as this is not the time to add yet another cost to our sectors.”

Cllr Mike Bell, leader of North Somerset Council, said, thanks to high levels of VAT, the UK tourism industry operated at a disadvantage compared to European towns and cities.

But he added: “We must ensure that the extra costs of supporting millions of visitors to our area does not place an undue burden on local finances, and if a tourism tax enables us to reinvest the income in services that make the area better for both visitors and our residents then it is right that is explored.

“Critically, funds from visitors to North Somerset should be invested in North Somerset.”

The West of England visitor economy generates around £2.7bn in annual visitor spend and supports more than 43,000 jobs.