Tourists now have to pay a £1 tax to stay in Manchester, the first city to impose a tourist tax on visitors in the UK.
Called the City Visitor Charge, the fee will help to fund the new Manchester Accommodation Business Improvement District (Abid) scheme. This aims to "improve the visitor experience" and "support future growth of the visitor economy" in the next five years.
Manchester will gain close to 6,000 hotel rooms, which is expected to result in an additional million overnight stays. Four out of five hotels that participated in a poll last year on whether or not to impose the fee chose to do so.
How does the charge work?
As part of an initiative that officials hope will collect £3 million annually, travellers staying the night in hotels or vacation rentals in the city centre will be charged £1 per night, per room.
Notwithstanding the current cost of living problem, the implementation of the tax was a "smart move," said Annie Brown, the first chair of Abid.
The Manchester Evening News quoted her as saying, “I think [the message it sends] has been a consideration, however, when you compare it with European cities that have had taxes and visitor levies in place for a number of years, we feel it’s a small amount comparatively.
“There are other cities in the UK looking to put in place what Manchester has done, I don’t think it’s a charge that’s offputting.
“It’s projected to make about £3m annually and that will fund the ABID and we will get the attractions, and cleaning, and deliver against our business plan. It’s going to be the largest accommodation business improvement district outside central London in terms of the revenue it generates.”
Which other UK cities are considering the tourist tax?
In Edinburgh, a £2 per night tourist tax is being considered. It is awaiting legislative approval from the Scottish Parliament.
A visitor levy is another idea being considered by the Welsh government, though no specific amount has been decided. In recent years, Oxford, Bath, and Hull have thought about making a similar step but decided against it.
Which other European cities charge a tourist tax?
There are tourist taxes in several European cities and locations, such as Venice, Rome, and Barcelona.
The nightly tax in Barcelona is €4 (£3.50) for visitors staying in rented housing, of which €2.25 (£1.98) goes to the region and €1.75 (£1.54) to the city. The local tax is €3.50 (£3) for guests staying in a five-star hotel.
The city fee increased to €2.75 (£2.42) on April 1 and will increase again to €3.25 (£2,85) as of that same date in 2024.
