A coalition of prominent English mayors is urging the UK government to grant local authorities the authority to implement a visitor levy, akin to those in European cities like Barcelona and Amsterdam. The proposed tax would apply to overnight stays, enabling cities to generate revenue to reinvest in tourism infrastructure, cultural initiatives, and public services.
Led by Liverpool City Region Mayor Steve Rotheram, the group includes Greater Manchester’s Andy Burnham, London’s Sadiq Khan, and other regional leaders. They argue that such a levy would empower local governments, reduce dependence on central funding, and allow regions to capture a fair share of the economic benefits from tourism.
In their letter to Culture Secretary Lisa Nandy and Chancellor Rachel Reeves, the mayors propose that the forthcoming English devolution bill or a specific finance bill include provisions permitting local authorities to design and administer a visitor levy tailored to their needs. They highlight that many European cities have successfully implemented similar taxes, which have contributed to the maintenance and enhancement of local amenities and services.
For instance, Liverpool attracts over 60 million visitors annually, and a modest visitor levy could generate nearly £11 million per year. Similarly, Greater Manchester estimates potential revenue between £8 million and £40 million. These funds could be allocated to support tourism-related projects, improve public transportation, and preserve cultural landmarks.
However, the proposal has faced criticism from some quarters. The Hospitality Association York has expressed concerns that introducing additional charges could deter tourists and negatively impact the local economy. They caution that the timing may not be ideal, given the current economic climate and the need to support the recovery of the tourism industry.
Despite these concerns, proponents of the visitor levy argue that it represents a fair and sustainable way to fund the upkeep of popular tourist destinations and ensure that the benefits of tourism are more evenly distributed across the country. They emphasize that the revenue generated would be reinvested locally, directly benefiting the communities that host visitors.
As discussions continue, the outcome of this initiative could set a precedent for how tourism is managed and funded in the UK, balancing the needs of local communities with the interests of the tourism industry.