Liverpool's hotels and serviced apartments have voted in favour of implementing an additional £2 overnight charge for guests. The proposal, presented as an alteration ballot through the Accommodation BID (ABID), received support from the city's 83 hotels.
The levy was backed by 26 votes to 18 against, with a 53% turnout, and is set to be introduced this June. ABID estimates that the £2 city visitor charge could generate £9.2m over two years, with £6.7m earmarked to bolster the city's visitor economy via a subvention fund.
This subvention could potentially translate into a total economic impact of £220m being spent in the city's visitor economy on accommodation and hospitality. This projection is based on the economic impact of other events supported by the ABID, including the Labour Party Conference.
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The remaining funds will be allocated towards destination marketing and supporting the visitor economy.
The £2 fee will be managed and collected by hotels and serviced accommodation, either upon guest check-in or at the end of their stay. The generated levy will be administered by the Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city, reports .
The business improvement district (BID) model stands as the sole mechanism permitting the introduction of an overnight charge in England. It operates under government legislation, enabling the collection of a levy and necessitating a transparent business plan for the utilisation of the accrued funds.
ABID has indicated that the revenue generated will be invested directly into bolstering the visitor economy, aiming to foster its expansion and evolution by establishing a self-sustaining visitor economy, thus alleviating the financial burden on public resources. The funds are earmarked for enhancing business conferences, destination marketing, and attracting significant events to the city that encourage overnight stays.
The Accommodation BID has been active since January 2023, with a levy imposed on establishments valued over £45,000.
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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.
"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 ABID, added: "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 City Council's cabinet member for culture and visitor economy, Councillor Harry Doyle, 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.
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"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.
"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."