Liverpool hotels to introduce £2 ‘tourist tax’ in new boost for visitor economy

Visitors staying overnight in the English city of Liverpool will soon have to pay a £2 “City Visitor Charge” after hotel owners voted to introduce a new tourist levy aimed at boosting the city’s visitor economy

The charge, which comes into effect from June, is expected to raise up to £9.2 million over two years. Around £6.7 million of that total will be put towards supporting Liverpool’s visitor economy through a dedicated subvention fund, helping to attract more major conferences, exhibitions, and events to the city.

The remaining revenue will be used for destination marketing and investment into the wider visitor economy.

The plans were approved by a ballot of Liverpool’s 83 hotels and serviced apartment providers, under the city’s Accommodation BID — a business improvement district specifically for the hospitality sector.

Of those eligible to vote, 59 per cent backed the scheme, on a turnout of 53 per cent.

The £2 charge will be collected by hotels and serviced apartments either when guests check in or out, and administered by the Accommodation BID, overseen by an industry board and managed by Liverpool BID Company.

Under government legislation, the BID model is currently the only mechanism in England that allows for an overnight tourism charge to be introduced.

Organisers say the levy could deliver a £220 million total economic impact over time, based on the economic boost seen from previous events supported by the Accommodation BID — such as the Labour Party Conference.

Explaining the decision, Bill Addy, Chief Executive 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 Liverpool’s Accommodation BID, 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 was the fifth-most visited city in the UK in 2023, attracting around 900,000 overnight visitors, according to the most recent tourism figures.

The move follows a similar initiative in Manchester, which introduced a £1 per night City Visitor Charge in 2023 — raising around £2.8 million in its first year.

Main photo: Alan Wright/Pixabay