The group chair and chief executive of influential private sector lobby group Downtown in Business, Frank McKenna, has hit out at critics of the tourist levy that came into effect in Liverpool this week.
Mr McKenna said:
“I have to say I am gobsmacked at the criticism of this initiative, and even more surprised at where some of the push back is coming from.
“This is not an additional tax on businesses – it is a levy charged on tourists who visit the city, with a very focussed strategy in place to ensure that the cash raised through the levy is utilised to support our city’s hotels and wider visitor economy.
“Without this additional revenue, it will be hugely challenging for the city to find the necessary resources to attract major events – such as the Labour Party Conference – which need significant subvention to incentivise them to come here.”
The DIB boss continued:
“It is not only our hotels, bars and restaurants that benefit from these investments. The M&S Bank arena is a big beneficiary, which is why I find opposition of Trade Group UK Hospitality utterly bizarre. As its CEO, Kate Nicholls, is also the chair of the arena, the organisation ought to be aware of the huge advantages of a tourist levy.
“I will be interested to hear how UK Hospitality thinks we will be able to support the arena and a major events programme for the city in the future without a tourist levy.”
Mr McKenna added:
“It should be explained that the visitor levy charge replaces a flat business levy fee which has been in place for some time – and was a direct cost to hotels.
“Nevertheless, the reason why an ABID in Liverpool is supported by the majority of Liverpool hoteliers is because, since being launched, the initiative has supported 43 events, contributed an additional £1.3m to accommodation providers, and added an estimated £87m worth of economic impact from visitor spend.
“This new model – which has been operating in Manchester without any similar controversy for years now – will provide the city with around £6.7m to invest in our visitor economy, translating in up to £220m of economic impact from visitor spend.
“This is why most Liverpool hoteliers back this scheme – and it is why it is an essential move if we are to maintain Liverpool’s position as a preferred destination for major events and conferences in the future.”
Frank concluded:
“As I see it we have three options. We get behind the visitor levy, an initiative that gives our hospitality sector a direct say in how money raised is invested. We support a Visitor tax – collected by mayors and Combined Authorities – with the industry having less say in how that cash is spent. Or we do nothing and allow Manchester and other major UK cities to eat our lunch. I think critics of the new scheme need to be careful what they wish for. “
THE FUTURE OF HOSPITALITY – DIB EVENT
Downtown in Business will be hosting a special lunchtime event focussed on the future of hospitality and the visitor economy on Tuesday 15th July, 12pm, at the Pullman Hotel.
The guest speaker is Matt Townley, the chair of Manchester’s Hospitality Association, who will be joined by the vice chair of Liverpool Hospitality Association Steven Hesketh.
To register for your place at this event please CLICK HERE
