The Group chair and chief executive of Downtown in Business, Frank McKenna, has welcomed the news that the city’s Accommodation Business Improvement District (ABID) has won business backing to secure a visitor levy that will bring millions of pounds into the Liverpool economy.
Mr McKenna said:
“The idea of a visitor levy is something DIB and the BID Company have been working on for several years. The original ABID generated monies through a tax on hotels and major visitor attractions, whilst the new model will see visitors pay a small tourist charge.
“The cash generated will support marketing, business, and cultural events in the city and the private sector leaders who have delivered this brilliant initiative deserve huge credit.
“Outside of Manchester, no other provincial city in England is able to support its city in this way – and the great thing is that we have the private sector and the public sector working collaboratively on how the additional resource is spent – with the businesses who raise the cash having a direct say on how the money is invested.”
Mr McKenna continued:
“It is fair to say that Liverpool’s public sector is more supportive of partnership with the private sector than it has been for some time. Nevertheless, we still have a way to go before we match the collaboration that has seen Manchester become the north’s economic powerhouse.
“This initiative offers our local authority leaders the opportunity of demonstrating a maturity in their approach – to evidence that they can work in genuine partnership with business, without needing to lead and control everything. I think we will see a business-led ABID delivering great things for Liverpool in the next few years.”
The Downtown boss’ comments come after Liverpool’s hotels and serviced apartments voted yes to introduce a £2 overnight charge to guests and those staying in the city. The proposals, put forward as an alteration ballot through the city’s Accommodation BID were supported by a vote undertaken by the city’s 83 hotels.
A £2 City Visitor Charge is projected to bring in £9.2million over two years, of which £6.7 million will go towards supporting the city’s visitor economy through a subvention fund. The subvention could convert into a potential £220m total economic impact being spent in the city’s visitor economy through accommodation and hospitality, based on the economic impact of other events supported by the ABID, including the Labour Party Conference. The remaining amount will support destination marketing and visitor economy.
The £2 charge will be managed and administered by hotels and serviced accommodation, either when guests check in or at the end of their stay. The levy generated would be administered by the Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city. It is overseen by an industry board. An Executive Board also manages the strategy and business planning of the ABID. The Accommodation BID is managed by Liverpool BID Company, which includes two business improvement districts in the city centre and represents over 800 businesses in the city.
The business improvement district model is the only one that allows for an overnight charge to be implemented in England. It allows for the raising of a levy, under government legislation, and requires a clear and transparent business plan for the proposed use of those funds.
The 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, helping to create a circular and sustainable visitor economy, relieving pressure on the public purse.
It would support business conferences and destination marketing and make a significant impact in bringing major events to the city that generate overnight stays, alongside other BID services including improving the public realm and targeted marketing campaigns.
The Accommodation BID began operating in January 2023. Currently, a levy is paid on venues with a rateable value above £45,000. Part of that levy goes towards supporting a subvention fund, aimed at attracting major events to Liverpool that encourage overnight stays, for example the Labour Party Conference, business forums, exhibitions and health events.
Bill Addy is CEO of Liverpool BID Company.
“This £2 a night levy will be to help turbo charge Liverpool’s tourism and visitor economy, helping the city attract bigger events who bring people to the city. The circular visitor economy is one that becomes sustainable, in that it is able to invest towards the aspects it needs to make itself successful.
We have always said that the industry should have their say on whether they want this levy to come in, as they are administering it. The evidence of other European cities suggests this model will translate overnight stays into major investment, so that we can convert that into world-leading and world-beating events.”
Marcus Magee is Chair of Liverpool’s Accommodation BID.
“This is a major step in enabling the hospitality sector to have a say and an influence in regards to the city’s decision-making around the visitor economy, which is crucial to the vibrancy and economy of the city. The business improvement district structure allows for a clear and transparent approach to the use of investment.”
Find out more about the Accommodation BID HERE.
