Liverpool latest UK city to introduce 'tourist tax' as visitors to pay nightly fee

People staying overnight in a major UK city will have to start paying a £2-a-night “” after the city’s hoteliers voted in favour of the plans.

A ballot by Accommodation BID, which represents 83 hotels in the city of , found that the majority supported the idea of a City Visitor Charge. They believe the levy will raise £9.2m over two years, of which £6.7m will go towards supporting the city's visitor . Liverpool BID Company, which manages Accommodation BID, said the levy would "turbo charge" the city's and visitor economy when it comes into force in June.

The charge will be managed and administered by hotels and serviced accommodation providers, either when guests check in or at the end of their stay. In April 2023, became the first city in the UK to introduce a tourist tax. The City Visitor Charge - a £1 per room, per night fee - raised about £2.8m in its first year.

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Edinburgh council also introduced a five per cent visitor levy on overnight stays in January this year - the biggest introduced in the UK to date. The charge will apply to each person, per night for the first five nights of their stay.

They are expected to being in £50 million per year for improved lighting, pedestrianisation schemes and other improvements in the city. However, tourism chiefs told that they fear cash-strapped councils will use to tax to fill 'black holes' in their budgets, rather than improving amenities across Edinburgh.

Edinburgh Council has since pledged £5 million of the £50 million earned each year will go to housing and "tourism mitigation". Money raised under the Liverpool scheme will be administered by Accommodation BID.

Liverpool BID Company includes two business improvement districts in the city centre and represents more than 800 businesses in Liverpool. For an overnight visitor charge to be implemented in England, a clear and transparent business plan must be provided for how the money raised will be spent.

Of the 83 hotels in Liverpool balloted about the visitor charge, 59% were in favour, on a turnout of 53%. Marcus Magee, chair of Liverpool's Accommodation BID, said the ballot was a "major step" in enabling the city's hospitality sector to have a say and an influence on decisions about the visitor economy. This, he said, was "crucial to the vibrancy and economy of the city".

Bill Addy, chief executive of Liverpool BID Company, said the £2 levy would help Liverpool attract bigger events which, in turn, would bring more visitors and money to the city. "We have always said the industry should have their say on whether they want this levy to come in, as they are administering it," he said.

"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."

Other cities across Europe also charge visitors. Venice has a two-tiered tourist tax system. Day visitors pay the ‘Venice Access Fee’, which is currently €5 per person per day. Overnight charges vary between €1 and €5 per person per night, depending on the time of year,

Barcelona charges tourist tax at a maximum of €7.5 per night. The measures entered into force in October 2024 In the UK, London has proposed a tourist tax with Mayor of London saying he was "happy to look into" the possibility.

hilst nothing formal has been proposed yet, Sadiq Khan commented that he would keep an eye on the evidence from Manchester's tourist tax, as well as other European cities. Mr Khan stated: "I'm happy to look into where it’s worked, what the issues are in relation to that particular policy… we’ll be looking at what cities are doing not just across Europe, but in the UK as well," according to the

In Bristol, the group has suggested a visitor levy despite not being in power. The group has proposed that there should be a £2-per-night accommodation charge, and that this would be an “innovative revenue stream”.