Manchester is becoming the first city in the UK to introduce a ‘tourist tax’ from this weekend.
Visitors staying over in one of the city centre’s hotels or apartments will now need to pay £1 per night, in a scheme known as the City Visitor Charge.
Officials hope it will raise up to £3m per year, which will ‘support future growth of the visitor economy and continued high performance for accommodation providers across the city’.
Hoteliers voted in favour of a new Manchester Accommodation Business Improvement District (BID) last year, as a way to respond to the ‘significant challenges currently facing the accommodation sector in Manchester’.
The tourist tax applies to 73 different accommodation offerings in the city centre, including Hotel Gotham, Dakota, and Kimpton Clocktower.
Any hotel or accommodation that falls within a mapped zone, and has a rateable value of £75,000 or more, is subject to the statutory Accommodation BID charge.
Similar schemes are already in place at several major cities in Europe, but Manchester is the first city in the UK to bring in a ‘tourist tax’.
Cllr Bev Craig, Leader of Manchester City Council, said: “These are exciting times for Manchester city centre with an unprecedented number of new hotel rooms being added and major new visitor attractions such as Factory International and Co-op Live due to open in the months ahead.
“Seizing that opportunity means ensuring as many rooms as possible are full all year round. We believe that targeted investment through the Manchester Accommodation BID will help support the accommodation sector – which plays such a vital role in supporting jobs in our city and adding to its overall vibrancy – to thrive.”
Adrian Ellis, General Manager of the Lowry Hotel, Chair of the Manchester Hoteliers’ Association, and Interim Spokesperson for the Manchester Accommodation BID, said: “The Manchester Hoteliers’ Association has been in discussion for several years to develop options to create new, additional funding that will support continued high performance and future growth of the visitor economy for accommodation providers across the city.
“The result of these discussions is the Manchester Accommodation Business Improvement District proposal, and I am delighted that hoteliers’ have voted in favour of creating an innovative, business-led solution to some of the problems we have been facing as a sector.
“A supplementary fee for guests, added to the final accommodation bill, is now an established norm within the travel sector across the world, and the Manchester Accommodation BID will now bring our accommodation sector in line with European and global counterparts and competitors.”
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