Manchester has recently implemented a “tourist tax” for visitors, making it the first city in the UK to do so. The City Visitor Charge will require individuals to pay an additional £1 per room, per night, for their accommodation cost. The revenue generated from this tax will be used to run large events, conferences, festivals, marketing campaigns, and for street cleanliness. The Chief Executive of Manchester City Council, Joanne Roney, stated that the innovative initiative is expected to raise £3 million annually to enhance visitors’ experiences.
The extra revenue generated from this tax will create new events and activities for visitors to enjoy, and the funds will be invested directly into these activities. This investment will support Manchester’s accommodation sector, protect and create jobs, and benefit the city’s economy as a whole. The charge is aimed to help boost the tourist economy as the city recovers from the COVID-19 pandemic.
The Manchester Accommodation Business Improvement District (ABID) was created after accommodation providers voted to set up the levy scheme. Some 73 hotels and serviced apartments signed up to the levy scheme, which has been introduced ahead of a planned expansion of the hotel and holiday let sector in the city. Annie Brown from Manchester ABID said the move would help create “a more sustainable and thriving sector, helping to bring visitors from around the world to experience the best of what Manchester and Salford have to offer.”
The goal of the Manchester Accommodation BID is to increase overnight stays in line with the growth of the accommodation sector in and around Manchester. Almost 6,000 new bedrooms are expected to be created in the next few years, and the BID is essential to ensure that hotels and serviced apartments in the city continue to thrive.
UK Hospitality Chief Executive Kate Nicholls warned that it is “essential funds are ringfenced for spend within the sector and not funding matters covered by general taxation.” She also emphasized that accommodation Business Improvement Districts “can have a role to fund local marketing and promotional activities,” but there must be comprehensive local support and significant engagement with the business community before it is implemented. Nicholls also warned that levies that are punitive, deter visitors, or are incorrectly targeted are ineffective and should be avoided at all costs.
In conclusion, the implementation of the tourist tax in Manchester is expected to generate additional revenue, which will be invested in creating new events and activities for visitors to enjoy. The tax is an innovative initiative aimed at enhancing visitors’ experiences, supporting Manchester’s accommodation sector, protecting and creating jobs, and benefiting the city’s economy as a whole. However, it is essential to ensure that funds generated from this tax are spent within the sector and not used to cover matters already covered by general taxation.
