On April 1st, Manchester became the first city in the United Kingdom to impose a tourist tax on visitors. The new City Visitor Charge will add an extra £1 per room, per night, to accommodation costs, which will be used to fund large events, conferences, festivals, marketing campaigns, and street cleanliness. Manchester City Council Chief Executive Joanne Roney praised the move as an “innovative initiative” that will generate £3m each year to “enhance” the visitor experience.
The funds collected from the tax will be invested directly into activities that support Manchester’s accommodation sector, protecting and creating jobs and benefiting the city’s economy as a whole. The development of a new organisation called Accommodation Business Improvement District (ABID) will be funded through the tax. ABID’s first chair, Annie Brown, said that the tax is a smart move, even during harsh economic winter, and it would create a more sustainable and thriving sector that helps bring visitors from around the world to experience the best of what Manchester and Salford have to offer.
While Manchester is the first UK city to impose the tax, other cities are following in its footsteps. Edinburgh is another city considering a £2 nightly tourist tax if approved by the Scottish parliament. Additionally, Oxford, Bath, and Hull have mulled over such proposals in the past.
The move has garnered support from the accommodation sector in Manchester, with 73 hotels and serviced apartments signing up to the levy scheme. The objective of Manchester Accommodation BID is straightforward – to boost overnight stays in tandem with the city’s expansion, enabling hotels and serviced apartments to prosper.
The introduction of the tax has not been without criticism, however. Some opponents have raised concerns that the tax could deter tourists from visiting Manchester, particularly in the current climate of economic uncertainty. Others have argued that the tax will disproportionately impact budget travellers who are already facing financial constraints.
Despite the criticisms, the move is seen as a significant step towards addressing the funding gap for large-scale events and festivals in Manchester. The City Visitor Charge has been touted as an effective way to raise funds while also improving the visitor experience in the city. With the success of this initiative, it is likely that other cities in the UK will follow suit, creating a new funding stream for the tourism sector that will help to support the growth and development of cities across the country.
However, some have criticized the tax, with concerns that it may deter visitors from choosing Manchester as a destination. The Manchester Hoteliers’ Association (MHA) called for a delay in the implementation of the tax, citing the impact of the Covid-19 pandemic on the hospitality industry. The MHA also expressed concern that the tax may put the city at a competitive disadvantage compared to other destinations in the UK.
Despite this, Manchester City Council proceeded with the implementation of the tourist tax, stating that it would help to support the city’s tourism industry in the long term. Other UK cities, including Oxford, Bath, and Hull, have also considered introducing a tourist tax to fund local initiatives.
The introduction of a tourist tax in Manchester has raised questions about whether other cities in the UK will follow suit. The tourism industry has been severely impacted by the Covid-19 pandemic, and many cities may look to alternative revenue sources to support local initiatives and boost economic growth.
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The implementation of a tourist tax in Manchester marks a significant change in the way that cities in the UK fund local initiatives. While the tax has been welcomed by some as an innovative way to support the tourism industry, others have expressed concern about its potential impact on visitor numbers. Nevertheless, the introduction of the tourist tax in Manchester is likely to have implications for other cities in the UK as they seek new revenue streams to support local initiatives and boost economic growth.
