People staying in hotels and serviced apartments in Liverpool could be paying a £2 a night visitor charge by summer 2025. Tony McDonough reports

Liverpool hoteliers and accommodation providers will vote on a proposal to start charging visitors to the city £2 a night during their stay.

Other UK locations, including Manchester and Bournemouth, already levy a so-called ‘tourist tax’ on overnight guests with other cities, including Chester, also considering similar schemes. Liverpool’s could be in place by June 2025.

Hotels and serviced accommodation providers who are members of the Liverpool Accommodation BID are to be asked about implementing the measure, which would involve an alteration to its current arrangement.

This proposal would see the charge, which would be administered by hotels, going directly into the visitor economy and helping to support its growth and development. It would also go towards improving the public realm, including street cleaning.

Accommodation BIDs (ABIDs) are currently the only mechanism for the introduction of visitor charges. This allows for a clear purpose in the investment of the funding, ensuring a clear management and transparency for its use for key aims.

Currently hotels and accommodation providers in the city centre with a rateable value above £45,000 pay an annual levy to run the BID. This levy raises £900,000 a year. However, the £2 visitor charge could raise an estimated £6.7m over the first two years.

Bill Addy, chief executive of Liverpool BID Company, said: “The purpose of the ABID is very clear in that it is designed to create a fund that is used primarily to attract major events, business, cultural and sporting, to the city.

“We know that overnight guests spend more money in the city than day trippers so encouraging more overnight stays, through conferences or major events spanning several days, generates a greater income for the city, be that through hospitality, retail cultural venues.

“Criteria is in place to specifically support business events that will attract business and inward investment to the city, highlighting its knowledge economy and commercial expertise.”

The ABID, which began operating in January 2023, was voted for by 85% of Liverpool’s hotels and serviced apartments. 

Part of the current levy goes towards supporting a subvention fund, aimed at attracting major events to Liverpool that encourage overnight stays such as conferences, business forums, exhibitions and health events.

So far, the ABID has invested £2.2m into the city economy, seeing an estimated return of £77m in economic impact.

Hotels and serviced apartments are being asked to vote on a shift towards a change in levy calculation. This would use a figure based on the “Liverpool Average” calculating the levy using monthly occupancy rates. 

An independent audit would calculate the occupancy rate each month using STR data, This would be used as the basis for a supplementary charge, the City Visitor Charge, per room/unit per night for guests, added to accommodation costs.

Members of Liverpool’s ABID are to be asked to vote in an alteration ballot, which could see the City Visitor Charge introduced in June 2025.

Marcus Magee, chair of Liverpool’s ABID, added: “This is an alteration ballot, which will ask the hotel industry to change the way we bring in funds. The change in the model is necessary to help the city bring in more events.

“We are in a competitive visitor economy and it is vital that Liverpool holds its own.”