Liverpool’s hotels and serviced apartments have voted to introduce a £2 overnight charge to guests overnighting in the city from 1 June 2025. The scheme was proposed by the city’s Accommodation BID.

The visitor tax will be charged per occupied room or unit per night, not on the basis of the individual or number of occupants. The scheme will be run by the city’s hotels and serviced accommodation, either when guests check in or at the end of their stay.

The £2 city visitor charge is projected to bring in £9.2m over two years, with £6.7m million earmarked for supporting the city’s visitor economy through a subvention fund administered by Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city. The remainder will support destination marketing and the visitor economy.

The tax raised will be controlled by the Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city. This model is already working in Manchester with a similar £2 charge since 2023.

Bill Addy, CEO of Liverpool BID Company, said: ‘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.

‘The evidence of other European cities suggests this model will translate overnight stays into major investment.’

The Liverpool fund will 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 public spaces and targeted marketing campaigns. The confirmation comes as the red half of the city celebrates Liverpool’s winning of the Premier League.

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. 

Marcus Magee, chair of Liverpool’s Accommodation BID, added: ‘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.’

Liverpool is just the latest city in the UK to roll out a visitor tax, replicating schemes which are widely used across Europe.

Edinburgh is set to introduce a tourist tax from July 2026, which will be a 5% fee applied to the cost of overnight accommodation in the city, capped at five nights in a row. It will affect all types of accommodation from hotels to campsites and Airbnb style rentals.

Businesses will need to apply the levy to any advance bookings made as of 1 October 2025 for stays on or after 24 July 2026.

The levy is projected to raise up to £50m a year once established, for the city to invest in protecting, supporting and enhancing Edinburgh’s worldwide appeal as a place to live and visit.

Wales is also working on plans for a nationwide scheme, affecting commercial accommodation including hotels, Airbnb style stays and holiday cottages. This will be set at a rate of £1.25 per person per night from 2027. Campers will have to pay 75p per night. This will be collected by the Welsh Revenue Authority and is expected to raise £33m a year.

The Visitor Accommodation (Register and Levy) Etc (Wales) Bill is going through the Welsh Senedd parliament with a final vote expected in summer 2025.