Hotel guests in Cambridge could face £2 tourist tax

The proposed tax is similar to those already imposed in Europe, the council said

Hotel guests could face a £2 per night tourist tax to help fund investment in a university city.

As part of proposals from Cambridge City Council, visitors to hotels that have 10 or more rooms would be subject to the levy.

The payment is common in Europe and had been successful since being introduced in Manchester, the council report said.

If proposals are approved, the new system could start as soon as 2025.

According to the report this could raise between £1.5m and £2.6m per year.

The scheme, known as an Accommodation Business Improvement District (ABID), could achieve "significant investment in the visitor economy in the Greater Cambridge area at a level previously unseen", according to the document.

Airbnb and self-catering accommodation would not have to collect the levy.

Nor would businesses where accommodation is a secondary part of their trade, such as pubs with a few rooms.

Some university colleges operate a commercial bed and breakfast offer, but cannot be mandated to charge the tax as they are educational institutions, the report said.

University-run bed and breakfasts would be exempt from the tax as educational institutions

Jemma Little, economic development manager at Cambridge City Council, told a meeting of the authority's strategy and resources scrutiny committee this week that initial discussions with hoteliers were "positive".

She said: "In order for the ABID to be established, there needs to be a ballot of the hotels within that catchment area."

Labour councillor Cameron Holloway said: "I think it's a great initiative and one that would be really positive for the city."

The committee voted unanimously to continue exploring the proposals, moving towards a ballot of hoteliers.