Local leaders are a step closer to getting new powers to invest more in high streets, cultural sites and other attractions that make communities great places to live, work and visit.
This Visitor Levy Bill, introduced in the House of Commons today, marks the most significant step in making fiscal devolution a reality, giving mayors and leaders who know their areas best the ability to introduce a small fee on overnight stays. Money raised through the levy will stay in the local area, giving communities investment in the places and services used by visitors and residents.
Mayors who choose to introduce a levy will be able to invest in what makes their regions special and improve the visitor experience from better high streets to public spaces – including public toilets and parks, cultural events and security and destination promotion. Money raised from visitors will stay in the area, helping attract more visitors, support local businesses and improve places for the people who live there too.
But the government will continue to protect lower cost family breaks by requiring the levy to be charged as a percentage rate of the cost of accommodation, rather than as a flat fee, meaning those choosing cheaper accommodation will pay less. Ten mayors have also committed that any levy introduced in their areas would be no higher than 5%, providing certainty for visitors and businesses while preserving local choice.
This piece of legislation builds on the significant commitment made at the Budget to drive good growth in every postcode, including through the government’s high streets strategy and wider plans to rewire the state, and shift power from Whitehall back to local communities.
Millions of people visit our wonderful towns and cities each year, and it’s right that our communities should be able to feel the benefit of that footfall.
Every pound raised through these levies will stay in the local area. Whether that’s better transport, thriving high streets, or more attractions that keep visitors coming back.
This is about giving mayors and local leaders the choice to invest back into what matters most to local people, while protecting lower-cost stays and making sure businesses have their say.
In Greater Manchester, we campaigned for an Overnight Visitor Levy to boost our region and give mayors the powers to raise additional funds through a modest levy on overnight stays. This would give us access to new funding that we can reinvest into our places to support our visitor economy, improve public services and drive good growth.
In Manchester we pioneered a similar scheme in recent years which has been a resounding success. Our industry-led City Visitor Charge has shown that the model can work, generating millions of pounds that has been invested back into things like street cleaning and our work to attract major events, with widespread support from the hospitality sector.
The Overnight Visitor Levy also represents a major moment for devolution and a further vote of confidence in the ability of mayors and local leaders to make decisions in the best interests of their places. It means we can attract more events, make our region more welcoming for tourists with cleaner streets and invest in long term projects like extending the tram network.
The important thing now is that this is genuinely devolved. Any levy needs to work for our city region and be shaped with our councils, businesses and the local hospitality sector, with the money raised here being used for the benefit of people and businesses in Greater Manchester.
We’re home to historic towns and cities, two of the UK’s best National Parks and a coastline brimming with character.
There’s something for everyone, and we welcome more than 40 million visitors every year. That’s why an Overnight Visitor Levy will be a total gamechanger for our county.
Investing in York and North Yorkshire’s cities, towns and villages to make them a better place to visit, and to live in, is at the heart of why I will be introducing a Levy in our county.
This is something I’ve been calling for over many years, so I’m really pleased the government is taking forward plans to give Mayors the power to introduce a visitor levy locally.
Our visitor economy is already worth more than £6.8bn a year and supports more than 55,000 jobs across the Liverpool City Region. A modest levy on overnight stays could potentially raise up to £18m a year – money that would stay here and be reinvested directly into the events, culture, experiences and infrastructure that bring millions of visitors to our region.
Visitor levy mechanisms are often used in many great cities across the globe to improve the visitor offer and attract even more people to enjoy the experience. It would give us more money to support the things that make our visitor economy such a success, while helping our businesses and communities to benefit from its continued growth.
We’ve shown time and again that local people know what our area needs far better than someone sitting behind a desk in Whitehall. I look forward to working with government as these powers are developed to make sure we get a system that is fair, workable and delivers the greatest possible benefit for our region.
After years of lobbying, I wholeheartedly welcome this Bill, which would give London greater freedom to raise and invest new funding locally.
A modest levy could support our hugely successful visitor economy, creating benefits for Londoners, businesses and visitors alike, as well as helping to cement London’s reputation as one of the world’s leading destinations.
We have so much to be proud of across the East Midlands. I want more people to discover our fantastic towns and cities, our attractions and everything else our region has to offer. And I want the communities that welcome them to share in the benefits.
An Overnight Visitor Levy would give us the chance to put more money back into the places that make our region what it is. That means supporting our attractions and independent businesses and helping our high streets and town centres attract even more people.
It’s important that local people and businesses are part of this conversation from the start. There will be full consultation before a levy is introduced, giving people the opportunity to help shape how it works and where the money raised could make the biggest difference. Those who know their communities best should have a real say in how they benefit.
Bradford’s year as UK City of Culture proved what we can achieve when we invest in our visitor economy, which is why I’m supportive of these powers to ask those who stay overnight to make a small contribution to support our great region.
This could be invested in bringing more gigs, performances, art and sport to our world-recognised venues, making our streets cleaner and safer, introducing night buses, and opening up more creative careers for our young people.
I’ll work closely with council leaders, businesses and our communities to ensure we get this right and build a brighter region that works for all.
Tens of millions of visitors spend billions of pounds in the West of England each year, brought here by amazing attractions like the Roman Baths, Clifton Suspension Bridge, Weston-super-Mare’s Grand Pier, and Bristol Zoo Project. And there’s much more on the way for our exciting region, particularly with the Aviva Arena opening in a few years’ time.
The overnight visitor levy will allow us to invest more money raised here right back into the West, like other places already do around the world. That could well mean transport and tourism improvements, helping communities to see and feel a difference from devolution.
The North East has vibrant cities, stunning coast and countryside in Northumberland and Durham and a welcome that keeps people coming back. A levy here will mean we can compete with rival destinations which already raise money from visitors.
We want to double the scale of our tourist economy and create thousands of new jobs as we do so. A small amount raised on each overnight stay means we can bring more major festivals to our region, support brilliant local events, improve the visitor experience and showcase the North East to the world.
The Government’s commitment to fiscal devolution will be a gamechanger, giving Mayors more freedom to invest in the sectors we know will deliver the economic growth and jobs our regions need. More than 100 million people come to the West Midlands every year to enjoy our rich heritage, exciting entertainment venues and world-class sport and cultural events, and that supports 150,000 local jobs. I want our visitor economy to be able to keep raising its game with new and even more exciting reasons for people to keep coming here.
OVL is a big step in putting power in the right place, allowing people that know their communities best to take significant decisions about the future of that place. Whether we take the decision to implement the levy or not, we now – rightly – control that decision. That’s a radical step and one I’m pleased to see government taking in tandem with us as Mayors.
These powers could be transformative for the UK’s cultural venues. Museums and galleries are at the heart of this country’s offer to tourists, attracting millions of people to British towns and cities every year. Overnight visitor levies should provide vital support for these cultural spaces and help them deliver the countless benefits they bring to local communities.
At the Southbank Centre, we welcome over 11.6 million visitors a year and we’re in the top 6 visitor attractions in the UK. We see first-hand how culture is fuelling the wider visitor economy. Introducing the Visitor Levy Bill to Parliament brings England in line with other major international destinations and cities. Importantly, it offers a transformative opportunity to reinvest tourism revenues directly back into the cultural infrastructure that brings visitors here in the first place.
Manchester’s experience shows what can be achieved when the visitor economy works together and investment raised through overnight stays is put back into making the destination even stronger. Through the Manchester Accommodation Business Improvement District, city centre hotels and serviced apartments have already been supporting activity that attracts visitors, strengthens major events, and improves their experience of Manchester.
The key for an Overnight Visitor Levy in Greater Manchester will be working closely with accommodation businesses to ensure any future levy is designed well, complements what is already working and delivers clear benefits for the businesses and places that generate it.
Dr Beatriz García, International Expert on Tourism, Cities & Culture (Hon. Professor, Cultural Policy & Mega Events, University of Liverpool), said:
Sources and further reading
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