Liverpool, a city celebrated for its legendary music roots, rich maritime heritage, and Premier League football fame, is about to introduce a new charge for visitors. From June, tourists staying overnight will need to pay an extra £2 per night at hotels across the area.
£2 Charge Aims to Boost Visitor Economy
Hoteliers across Liverpool have voted in favour of implementing the new levy. The decision was made following a ballot conducted by Accommodation BID, representing 83 hotels in the city.
The organisation confirmed that the £2 “city visitor charge” is expected to generate a significant £9.2 million over two years. Out of this, £6.7 million will be channelled into a subvention fund aimed at strengthening Liverpool’s visitor economy.
Guests will be charged the levy either at check-in or check-out. It will be managed and administered directly by hotels and serviced accommodations.
While Scotland already has legislation allowing local authorities to impose tourist taxes, England’s councils currently lack that power. However, following Manchester’s lead, Liverpool has employed a clever workaround.
Both cities have introduced a tourism-focused Business Improvement District (BID) from 1 April 2023. This allowed them to establish a form of ‘tourist tax’ using existing legal frameworks.
The Liverpool BID Company, which oversees Accommodation BID, clarified that the new charge isn’t technically a tourist tax or visitor levy. Instead, it is an alteration to the existing BID levy, shifting the charge from businesses to overnight guests.
Under the new system, the levy will be collected per occupied room or unit each night.
Levy to Fund Events and Boost City’s Global Profile
The funds raised will support a range of initiatives, from business conferences to destination marketing. The hope is that Liverpool can attract major international events, generating even more overnight stays and further boosting the city’s economy.
Bill Addy, CEO of Liverpool BID Company, commented: “This £2 a night levy will be to help turbocharge Liverpool’s tourism and visitor economy, helping the city attract bigger events [that] bring people to the city.
The circular visitor economy becomes sustainable, in that it can invest towards the aspects it needs to make itself successful.”
Drawing inspiration from European cities that have successfully implemented similar schemes, Liverpool believes the levy could transform the local tourism landscape.
“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,” Mr Addy added.
“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, also expressed his support for the move: “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.”
Liverpool’s decision to implement a £2 overnight visitor charge marks a new chapter for the city’s tourism industry. While some may grumble about the extra cost, the levy promises to reinvest directly into Liverpool’s vibrant culture, attractions, and economy, ensuring that the city continues to thrive on the world stage.
