Downtown in Business has welcomed the successful establishment of Birmingham’s first Accommodation Business Improvement District (ABID), describing the initiative as an important step forward for the city’s visitor economy.
Birmingham’s accommodation businesses have voted in favour of establishing the new industry-led body, with 64% of votes cast supporting the proposals, representing 59% of the total rateable value voting. The ABID will begin delivering its five-year business plan in April 2027.
The new organisation will enable Birmingham’s accommodation sector to collectively invest in destination marketing, attracting major conferences and events, business advocacy and initiatives designed to increase overnight stays and visitor expenditure.
Downtown in Business Group chair and chief executive Frank McKenna has welcomed the decision and pointed to Liverpool as evidence of the impact an Accommodation BID can have.
DIB was an early advocate and supporter of the establishment of Liverpool’s Accommodation BID, working alongside Liverpool BID Company and leaders from the city’s hospitality sector to promote the initiative ahead of its establishment in January 2023.
Liverpool has subsequently developed the model further, introducing a £2-per-room overnight charge in June 2025 following another successful ballot of accommodation businesses.
In its first year, the £2 levy generated more than £2 million for investment in Liverpool’s visitor economy. Since the Accommodation BID was originally established in 2023, £4.5 million has been invested, while events supported through the ABID have generated more than £86 million for the Liverpool economy.
Frank McKenna said:
“Birmingham’s decision to establish an Accommodation BID is fantastic news for the city and another important demonstration of what can be achieved when the private sector takes a leadership role in driving economic growth.
“We were enthusiastic supporters of the Accommodation BID model in Liverpool from its inception. Working with Liverpool BID Company and hospitality leaders, we helped champion the proposition with the business community because we believed it could provide a sustainable, business-led mechanism for investing in the visitor economy.
“The results speak for themselves. Liverpool’s ABID has enabled significant investment in destination marketing, major events and conferences and has helped generate tens of millions of pounds of additional economic activity.
“The crucial point is that this isn’t simply about hotels. Successful visitor economies support restaurants, bars, retail, culture, transport and thousands of jobs across our city centres.
“Birmingham is already one of the UK’s great business and visitor destinations. Giving its accommodation sector the ability to invest collectively in attracting more conferences, events and visitors can only strengthen that position.
“Downtown in Business has been increasingly active in Birmingham and the wider West Midlands in recent years, and we look forward to working with the Birmingham Hospitality Association, West Midlands Growth Company and our partners across the city to support this exciting new chapter.”
The Birmingham Accommodation BID was developed by industry stakeholders and led by Birmingham Hospitality Association with support from Birmingham Colmore. It will work alongside West Midlands Growth Company and other visitor-economy partners when it begins operating on 1 April 2027.
McKenna added:
“Liverpool and Birmingham are different cities with different visitor economies, but the principle is the same: businesses collaborating, investing and having a genuine say in how their destination is promoted and developed.
“As pressures on public finances continue, innovative public-private partnerships like ABIDs will become increasingly important. Liverpool has demonstrated what the model can achieve. We are delighted that Birmingham is now embarking on its own journey.
“For me, this is a much better model than the government’s proposed Tourist Tax. An ABID has business support and is genuinely investing in business priorities. The hospitality wants to contribute and invest in their place’s future – but quite legitimately, they want to have a major say in how the money that they raise is spent.”
