In the first year of operation, Manchester is on track earn £2.8m from the city’s new overnight tourist tax
The final figure is being calculated by Manchester Accommodation BID (MBID), the body representing the city’s hotel and serviced apartment providers.
The income raised in year one has not been calculated yet as it is determined by hotel occupancy data and there is a lag on that; however, MBID has estimated that it will be in the region of £2.8m.
The £1 tourist tax, known as the City Visitor Charge, is charged per night per room for visitors staying in 74 hotels and accommodation facilities in the city, and came into effect last April. The charge is added to accommodation costs.
MBID chair Kumar Mishra said the aim of the tourist tax is to ‘attract more people to visit and stay in Manchester’.
‘Firstly, to create and amplify marketing campaigns that would drive overnight stays; secondly, to secure large-scale events, conferences, and festivals in low-season months; and thirdly, to improve guest welcome and street cleanliness to ensure that guests who do visit Manchester have the best possible experience and are encouraged to return,’ Mishra said.
‘As we end this first year, the impact of the Manchester Accommodation BID is being felt heavily across the accommodation, and wider visitor economy, sector here in Manchester. Going into year two, big plans are emerging.
‘Manchester is already enjoying an incredible moment in the spotlight as one of the must-visit cities for 2024, and thanks to the Manchester Accommodation BID, Manchester is now in the best possible position to leverage and make the most of this moment.’
The money raised by the tourist tax is being spent on marketing and campaigns promoting the city; bids and subsidies to attract major conferences and business events to the city; consumer events like Manchester Pride and Beyond the Music; enhanced street cleaning, on-street welcome hosts, and specialist training for accommodation providers on security.
MBID estimates that the group’s marketing campaigns generated over 5,000 additional room nights from the summer promotion alone.
Cambridge and Edinburgh are also considering charging visitors a tourist tax. The practice is quite common in Europe with cities like Paris charging €5.20 (£4.45) for a night in a four-star hotel.