A tourist tax 'could generate £428m' for local councils across the country - simply by adding £1 a night onto hotel bills. A pound-a-night levy has been added this week to hotel stays in Manchester, dubbed a 'tourist tax'.
The money will go straight into town hall coffers, and cities across the country could benefit from similar measures, research reveals. A study by the Northern Powerhouse Partnership, seen exclusively by the Mirror, shows how a “tourist tax” could help generate vital funds for local councils.
The report comes as hundreds of thousands of families flock to seaside resorts and countryside retreats for the Easter holidays, reports MirrorOnline. Analysis by the Northern Powerhouse Partnership think tank and Open Innovations lays bare the benefit of handing fundraising powers to regional bodies and mayors - and the potential bonanza for cash-strapped authorities.
According to its analysis, the South East would be the English region that reaped the most - £87.6millon - closely followed by the tourist hotspot of the South West, including Cornwall, Devon and Dorset, with £86.4m. The North West would get £59.8m, London £55.5m, Yorkshire and the Humber £37.9m, the West Midlands £33.9m, East of England £28.1m, the East Midlands £24.9m and the North East £13.8m.
Such revenue could ease pressure on stretched council budgets - boosting local services and even allowing for council tax cuts.
Northern Powerhouse Partnership chief executive Henri Murison said: “Introducing a tourism levy is common sense if we want to be able to invest in our offer to international visitors by protecting and enhancing our natural and cultural assets. It’s not fair that the burden of this upkeep or the cost of increased traffic should fall entirely on local residents, nor does it make sense economically.
“You wouldn’t think twice about paying a couple of euros in France or Italy, so why should it be any different here?”
Critics of such an approach claim it would put off potential visitors. But supporters say such a small levy would not deter tourists ready to spend hundreds or even thousands of pounds during their stays.
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On Saturday (April 1), Manchester became the first UK city to impose a tourist tax on visitors. Overnight guests in city centre hotels or holiday apartments are charged £1 a night, per room, as part of a scheme officials hope will raise £3m a year.
Meanwhile, plans for a levy on holidaymakers in Wales moved a step closer last week, with the Welsh Government vowing to put legislation allowing local authorities to introduce a levy to the Senedd within the next two years.
Mr Murison added: “A tourism levy is part of a broader conversation about rethinking our broken local government financing system. It’s vital we find ways to ensure council leaders and mayors are able to invest in long-term economic priorities such as transport, without having to ask the Treasury every time.”
