Mayor welcomes local power to impose tourist tax

The city region will be able to charge a levy in two years' time

The mayor of Liverpool City Region has welcomed a government decision to allow regional mayors to introduce a tourist tax on overnight stays.

Steve Rotheram, who has campaigned for the levy on overnight stays since 2017, said it would help Liverpool emulate global cities.

He said: "For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted."

People staying overnight in Liverpool have paid a £2 per night City Visitor Charge since June, after hoteliers voted in favour of plans to introduce one.

The new levy will be introduced after 2027 when the City Visitor Charge expires.

Two key differences will be that it will cover the entire city region and include properties rented through Airbnb.

Dstinations 'thriving'

Rotheram said: "Cities like Barcelona and Paris raise tens of millions each year through similar schemes - money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving.

"Until now, we've had no such option".

He said the region's visitor economy is worth more than £6bn annually, supporting more than over 55,000 local jobs.

Rotheram added the tax could raise up to £17m each year - "money that would stay local and be reinvested in the things that make our region stand out".

He said these were Liverpool's "world-class culture, iconic events, vibrant public spaces and the infrastructure that ties it all together."

The current visitor levy had been appealed by hotel group Whitbread PLC, which owns Premier Inn - but this has been rejected by the Ministry of Housing Communities and Local Government (MHCLG).

A Whitbread spokesperson reiterated that the company had joined with other companies such as Travelodge, Hilton and Marriott in warning the chancellor new taxes could harm the hospitality sector.

A joint letter by their chief executives said: "It will simply not make good business sense to develop a hotel when taxes will account for nearly one third of the price of a room."

Bill Addy, chief executive of Liverpool BID - which organised the vote for the current levy in Liverpool - said: "We are delighted and reassured that central government has conducted an in-depth analysis of our ballot and has found against the appeal."