City visitors could face 'tourist tax'

Oxford City Council is considering implementing a "tourist tax"

A new levy on overnight stays is being considered for visitors to Oxford.

Oxford City Council is helping to facilitate discussions about introducing an Accommodation Business Improvement District (ABID) which would add a surcharge – sometimes referred to as a "tourist tax" – to hotel and college room rates.

It is estimated the scheme, which would be run by accommodation providers, could generate £2.5m a year which would be reinvested in the local tourist economy.

At a meeting of the council's scrutiny committee on Tuesday, members discussed the potential impact of the plan.

About seven million people visited the city last year, according to council figures - the whole footfall figure for the city was 32 million and across the whole county tourism supports about 40,000 jobs.

A £2 nightly charge on overnight stays in hotels and college rooms could help fund improvements to the city's visitor offer, the council said.

Diana Fawcett, city centre manager at Oxford City Council, said: "It's not really just about our tourists, it's about anybody who uses the city.

"So whether you live here, whether you work here, whether you're a student here, as well as a tourist, we want to improve that experience."

More than 32 million people visited Oxford last year

Similar schemes already operate in other parts of the country, including Manchester and Liverpool.

Manchester introduced its ABID in April 2023, adding a £1 per night visitor charge to hotels and serviced apartments. It raised an estimated £2.8m in its first year.

Liverpool's version began in June, with a £2 nightly charge expected to bring in £9.2m by 2027.

In Dorset, a ballot of hoteliers in Bournemouth, Christchurch and Poole approved a levy in May 2024, however more than 40 hotels lodged an appeal with the government over how the ballot was conducted.

This meant the introduction of the levy was postponed.

In Oxford, as well as an estimated 2,300 hotel rooms being considered for the programme, Oxford University colleges have approximately 8,000 rooms available at various points in the year, with a predicted annual ABID contribution of £1.2m.

Accommodation providers in the city have recommended creating two task groups – one for hoteliers and one for colleges – to lead the design of the scheme and decide which local projects should benefit from the funding.