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UKHospitality has warned against the idea of a Greater Manchester tourist tax, claiming the move would harm both visitor numbers and spend in the city. Kate Nicholls, CEO of UKHospitality, said it was “really disappointing” that the mayor of Greater Manchester, Andy Burnham, does “not seem to appreciate the damage a mandatory tourist tax would have on the city as a destination”.
According to modelling, the tax would reduce visitor numbers and spending, UKH warned. An impact assessment produced for the Welsh Government’s Visitor Levy showed that a tourist tax would result in a reduction in visitors of up to 2.5% and reduce visitor spend by up to £35m a year.
Nicholls added it was “frustrating” to see comparisons to other major tourist destinations charging visitors a tax used once again, due to the fact those cities have a “significantly” lower rate of VAT, often half the 20% charged in the UK.
Nicholls said: “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.”
Nicholls added she was “pleased” that the government has been clear that it has no plans to introduce a tourist tax and that UKH “will be holding them to that commitment”.
