Liverpool could bring in 'tourist tax' as soon as 2025

The charge, dubbed the ‘tourist tax’, was adopted in Manchester in April 2023 with overnight guests charged an extra £1 a night fee per city centre hotel or, holiday apartment, room. £2.8m was raised in the first year, with the funds used for marketing campaigns and street cleaning, and now Liverpool could follow suit.

Visitors could be charged £2 a night as soon as June next year, with hotels and serviced apartments operating in the city being asked to vote on a new City Visitor Charge as part of the city’s Accommodation BID (ABID).

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. It would also go towards improving the public realm, including street cleaning.

The City Visitor Charge would see a £2 levy plus VAT added onto each overnight stay in the city and would be administered by the Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city.

The ABID, which began operating in January 2023 and represents 80 businesses, was voted for by 85% of Liverpool’s hotels and serviced apartments. 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. The ABID has invested £2.2m into the city economy, seeing a return of £77m economic impact.

Hotels and serviced apartments are being asked to vote on a shift towards a change in levy calculation. This would use a figure based on the “Liverpool Average” calculating the levy using monthly occupancy rates. An independent audit would calculate the occupancy rate each month using STR data, This would be used as the basis for a supplementary charge, the City Visitor Charge, per room/unit per night for guests, added to accommodation costs.

Instead of seeing a levy generating £900k per annum, a £2 City Visitor Charge could bring in £6.7 million, over 2 years. towards supporting the city’s visitor economy.

Members of Liverpool’s Accommodation BID are to be asked to vote in an alteration ballot, which could see the City Visitor Charge introduced in June 2025.