Liverpool’s hotels and serviced apartments have approved the introduction of a £2 per night charge for guests staying in the city. The proposal, presented as a variation ballot through the city’s Accommodation BID, was backed following a vote by all 83 of Liverpool’s hotels.
A £2 City Visitor Charge is projected to bring in £9.2million over two years, of which £6.7 million will go towards supporting the city’s visitor economy through a subvention fund. The subvention could convert into a potential £220m total economic impact being spent in the city’s visitor economy through accommodation and hospitality, based on the economic impact of other events supported by the ABID, including the Labour Party Conference. The remaining amount will support destination marketing and visitor economy.
The £2 charge will be managed and administered by hotels and serviced accommodation, either when guests check in or at the end of their stay. The levy generated would be administered by the Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city. It is overseen by an industry board. An Executive Board also manages the strategy and business planning of the ABID. The Accommodation BID is managed by Liverpool BID Company, which includes two business improvement districts in the city centre and represents over 800 businesses in the city.
The business improvement district model is the only one that allows for an overnight charge to be implemented in England. It allows for the raising of a levy, under government legislation, and requires a clear and transparent business plan for the proposed use of those funds.
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, helping to create a circular and sustainable visitor economy, relieving pressure on the public purse.
It would support business conferences and destination marketing and make a significant impact in bringing major events to the city that generate overnight stays, alongside other BID services, including improving the public realm and targeted marketing campaigns.
The Accommodation BID began operating in January 2023. 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.
Bill Addy is CEO 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 that 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 is Chair of Liverpool’s Accommodation BID said:
“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”.
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