Andy Burnham has been slammed by the chief executive of UKHospitality after backing plans for a new tourist tax to be introduced in Manchester.
The mayor of Greater Manchester said earlier this week that tourists visiting the city region should pay a “proper” mandatory “tourist levy”.
He added that he wanted to see Manchester city centre’s ‘city visitors charge’, which is optional, replaced by one that is compulsory.
Currently, guests at city centre hotels are urged to pay £1-per-night to help fund the Accommodation Business Improvement District (ABID) organisation.
The body promotes Manchester as well as pays to clean the streets around hotels.
The mayor’s comments come a month after a decade-long plan to increase Greater Manchester’s contribution to the UK economy by £13bn a year was unveiled by Burnham.
The proposal would see the “whole Greater Manchester system mobilised” to deliver £1bn of investment every year between now and 2035.
Burnham also promised to build new homes ‘on a scale and at a pace not seen in the past 20 years’.
The plan is centred around a ‘single pipeline for growth’ which would target investment in six so-called ‘growth locations’ across Greater Manchester.
On the proposed tourism tax, Andy Burnham told BBC Radio Manchester: “I would like a scheme that’s mainly about visitors to Greater Manchester.
“People pay their council tax and they do not generally stay in hotels. I know it happens but largely it’s about people coming into the city region.
“I am putting the case to the government for a tourist levy because Edinburgh has brought one in.
“I think Glasgow have voted to bring one in. Wales are looking at it as well.”
In April 2024, it was reported that the optional ‘city visitor charge’ had raised about £2.8m during its first year.
But Andy Burnham’s comments have not been welcomed by the chief executive of UKHospitality who has slammed them as “really disappointing” and not the answer Manchester needs.
Kate Nicholls added that the proposed tax would “do further harm to our tourism competitiveness, hit consumers in the pocket and place further burdens on business”.
‘Tourist tax is not the answer’, Andy Burnham told
Nicholls said: “It’s really disappointing that the mayor of Greater Manchester doesn’t seem to appreciate the damage a mandatory tourist tax would have on the city as a destination, which modelling shows would reduce visitor numbers and spending.
“It’s frustrating to see the oft-used comparison to other major tourist destinations charging visitors a tax used yet again, without recognition that those cities have a significantly lower rate of VAT – often half the 20 per cent charged in the UK.
“Our visitors are already taxed considerably more compared to other countries in Europe – we shouldn’t be adding to that burden.
“The mayor recognises the contribution residents make to public funding through council tax, but he overlooks the £94m hospitality businesses in Greater Manchester generate in revenue for local services.
“On top of this, there is a hotel-led scheme that funds a number of areas including street cleanliness and promoting Manchester as a destination.
“Everyone can appreciate the challenging financial situation many local authorities find themselves in, but a tourist tax to top up day-to-day council spending is not the answer.
“It would do further harm to our tourism competitiveness, hit consumers in the pocket and place further burdens on business.
“I’m pleased that the government has been clear that it has no plans to introduce a tourist tax and we will be holding them to that commitment.”