Hospitality sector speaks out against Greater Manchester tourist tax idea

Following the suggestion of Greater Manchester Mayor Andy Burnham of introducing a tourist tax for visitors to the city-region, industry body UKHospitality has pushed back against the idea.

The Mayor floated the idea of a mandatory tourist levy during a BBC interview, however, UKHospitality have criticised plans, arguing it would harm visitor numbers and reduce the spend of tourists during their stays.

To support their views, the organisation has cited an impact assessment on similar plans considered by the Welsh Government, which identified a reduction in visitor spend of £35 million, and a 2.5% fall in visitor numbers. The organisation also points to the hotel-led BID scheme in Manchester city centre, which already levies a small contribution from guests that funds city centre events, street cleaning and promotion of the city’s visitor economy.

In a statement, UKHospitality Chief Executive, Kate Nicholls, said:

“It’s really disappointing that the Mayor of Greater Manchester doesn’t seem to appreciate the damage a mandatory tourist tax would have on the city as a destination, which modelling shows would reduce visitor numbers and spending.

“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% 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 £94 million 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.”