The recently announced 'tourist tax' - where an extra £1 is added onto the fee on a stay per night at a hotel room or other accommodation - could raise councils hundreds of millions of pounds, new research reveals. The City Visitor Charge was introduced on Saturday (April 1), with the money being used to help boost the tourist economy through the running of large events, conferences, festivals, marketing campaigns and also towards street cleanliness in the city.
A study by the Northern Powerhouse Partnership shows how the tax could help generate vital funds for town hall coffers. The research, seen by The Mirror, shows how each region of the UK could fare by adding the extra pound on with the north west potentially gaining £59.8m.
Such revenue could ease pressure on stretched council budgets - boosting local services and even allowing for council tax cuts, according to the analysis from the the Northern Powerhouse Partnership think tank and Open Innovations. "Introducing a tourism levy is common sense if we want to be able to invest in our offer to international visitors by protecting and enhancing our natural and cultural assets," said Henri Murison, Northern Powerhouse Partnership chief executive.
READ MORE: People divided as Manchester's new tourist tax is introduced
"It’s not fair that the burden of this upkeep or the cost of increased traffic should fall entirely on local residents, nor does it make sense economically. You wouldn’t think twice about paying a couple of euros in France or Italy, so why should it be any different here?"
Manchester became the first UK city to impose a tourist tax on visitors on Saturday. Overnight guests in city centre hotels or holiday apartments will be charged an extra £1 a night, per room, as part of a scheme officials hope will raise £3m a year.
Mr Murison added: "A tourism levy is part of a broader conversation about rethinking our broken local government financing system. It’s vital we find ways to ensure council leaders and mayors are able to invest in long-term economic priorities such as transport, without having to ask the Treasury every time."
The fee will be charged at 74 hotels and short stay serviced apartments within Manchester city centre and parts of Salford. The £3m will be used to fund a new organisation, the Accommodation Business Improvement District (ABID), which was set up following a vote from accommodation providers.
It has been met with a mixed reception online, but Annie Brown, the first chair of the ABID, thinks it’s a 'smart move'. Ms Brown said it's a 'small amount' compared to many other European cities, with Edinburgh announcing last year it plans to charge £2 per night, compared to Manchester's £1.
She added that it shouldn't be 'off putting' for people looking to visit the city. The money it raises would be reinvested to make and improve attractions, cleaning, and delivering the ABID business plan. "It’s widely known we have an ever-increasing number of hotels opening, so it’s ever-more-important that we’re self-sustaining that growth and make it the place to come," Ms Brown says.
However, it was not completely well received, with many expressing their doubts online. One said: "Lol, Manchester is my home town and I have some residual pride, but there’s no way it merits a tourist tax. Barcelona? Sure, I get it, great food, great weather etc. But Manchester? Get p*** wet through and see the Trafford Centre? Do one."
Another added: "So London next? I know you pay over the odds for London being London anyway, but if Manchester can do this, then London is a much much bigger tourism spot and could make a bundle doing this surely? What happens if you are there for work or live locally and need a hotel. Are you also a ‘tourist?’"
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