Despite concerns among Liverpool city centre hoteliers, city region Mayor Steve Rotheram welcomes news that his plans for a ‘tourist tax’ are moving forward. Tony McDonough reports

Plans to introduce a ‘tourist’ tax in Liverpool city region have moved a step closer to reality with a bill now introduced in Parliament.

If MPs pass the Visitor Levy Bill, Mayors including Liverpool city region’s Steve Rotheram will be handed powers to introduce an overnight visitor levy (OVL), which is a tax on people staying overnight in hotels within the city region.

Mr Rotheram has pledged to keep the overnight charge, which is common in cities across Europe, at 5% or below. He claims the left will raise up to £18m a year to be reinvested into high streets, cultural sites and other attractions.

“This is something I’ve been calling for over many years, so I’m really pleased the government is taking forward plans to give Mayors the power to introduce a visitor levy locally,” he said.

However, there is scepticism for the proposal from local hoteliers. They are already administering a £2-a-night charge on overnight visitors in Liverpool city centre which is administered by the Liverpool Accommodation BID (ABID).

This ABID is one of three city centre BIDs representing the interests of more than 900 businesses in the city centre.

Since its levy was introduced in June 2025 more than £2m has been raised to promote tourism, securing major sports and cultural events and business conferences, as well as street cleansing.

In October the ABID questioned whether the Mayor’s proposal would represent an improvement on its current system. It claims its scheme is set to bring a further £132m into the city via events the levy has helped to attract.

It put six questions to Mr Rotheram:

• What guarantees are in place to ensure the money is ring-fenced locally and that it is directed into the visitor economy?
• Hoteliers currently have protection with “The Liverpool Model” and through BID to opt in every five years, what protection or assurance do they have to be able to opt out now?
• How will mayors make sure the OVL provides additionality and doesn’t replace current budgets focused on arts, culture and the visitor economy?
• If The Liverpool Model and ABIDs have proven to be so successful, why are we not building on that rather than replacing it with something unproven?
• There is currently a clear and transparent governance model that shows how and where investment decisions are being made. How will the OVL replicate that?
• Will hotels receive any support in terms of administration to manage the running of the OVL, or is this expected to come from within hotel costs?

Businesses must be consulted before Mr Rotheram’s OVL can be introduced  and student accommodation, care homes and other similar accommodation won’t be affected.

The levy to be charged as a percentage rate of the cost of accommodation, rather than as a flat fee, meaning those choosing cheaper accommodation will pay less.

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“Our visitor economy is already worth more than £6.8bn a year and supports more than 55,000 jobs across the Liverpool city region,” said the Mayor.

“A modest levy on overnight stays could potentially raise up to £18m a year, money that would stay here and be reinvested directly into the events, culture, experiences and infrastructure that bring millions of visitors to our region.”