‘He doesn’t seem to appreciate the damage a mandatory tourist tax would have on the city as a destination’
Andy Burnham’s calls for a ‘proper’ tourist tax in Greater Manchester have been slammed by a leading hospitality industry figure.
The mayor said he was ‘putting the case to the government for a tourist levy’ on Thursday (February 20) which would be a mandatory tax for visitors staying in Greater Manchester.
“We would like it to be a proper levy. I would like a scheme that’s mainly about visitors to Greater Manchester,” he told BBC Radio Manchester. “In an era where we are struggling to raise funds from the public here it feels right to me [when there’s] the levy British tourists pay in France, Germany, and Italy… why should people from there not pay one?”
But Kate Nicholls, chief executive of UKHospitality, said the mayor ‘doesn’t seem to appreciate the damage a mandatory tourist tax would have on the city as a destination’.
She said in a statement on Friday: “It’s frustrating to see the oft-used comparison to other major tourist destinations charging visitors a tax used yet again, without recognition that those cities have a significantly lower rate of VAT – often half the 20 percent charged in the UK.
“Our visitors are already taxed considerably more compared to other countries in Europe – we shouldn’t be adding to that burden.
“The mayor recognises the contribution residents make to public funding through council tax, but he overlooks the £94m hospitality businesses in Greater Manchester generate in revenue for local services. On top of this, there is a hotel-led scheme that funds a number of areas including street cleanliness and promoting Manchester as a destination.
“Everyone can appreciate the challenging financial situation many local authorities find themselves in, but a tourist tax to top up day-to-day council spending is not the answer. It would do further harm to our tourism competitiveness, hit consumers in the pocket and place further burdens on business.
“I’m pleased that the government has been clear that it has no plans to introduce a tourist tax and we will be holding them to that commitment.”
Currently, an optional £1-per-night surcharge is added to hotel guests’ bills when they stay in the city centre. The ‘city visitor charge’ raised £2.8m in its first year for the Accommodation Business Improvement District (ABID) organisation which promotes Manchester as a holiday destination, and does extra street cleaning around hotels.
