No. There is currently no legal basis for a Visitor Levy or Tourist Tax in England.  The proposed Liverpool ABID Charge would instead be delivered by a change to the existing BID levy through the existing Business Improvement District legislation.  The Accommodation BID is currently funded by a top-up to the business rates of member hotels.  Subject to this ballot, the proposed change will move this to a charge levied per occupied room/unit per night, which would generate greater funds to create a more meaningful impact.

• It would secure larger scale sports and cultural events
• Drive marketing campaigns that will increase overnight stays
• Bring business conferences and festivals at low occupancy periods
• Support long term exhibitions in our museums and galleries
• Improve the environment for guests arriving in the city.

The change in rating list in 2023 reduced the ABID’s income. By changing the levy rules, which would be done through an alteration ballot, the revenue available to the ABID would increase to replace the loss. Member hotels can choose to recoup the proposed charge from guests through an additional supplement per occupied room if they wish.

The Liverpool ABID Charge would be a small fee of £2 per occupied room or unit per night  for hotel or serviced  accommodation within the Liverpool ABID zone. This charge would be introduced as part of an initiative led by the city’s hotel and serviced apartment providers to create exciting new events and activities that will encourage more people to visit Liverpool.

The money raised through the Liverpool ABID Charge will be used to develop and promote tourism in the area, as well as to help create more things for visitors to do and see, and managed by the Liverpool ABID.

Business Rate payers for hotel or serviced accommodation with a ratable value of £45,000 or above will remain liable for the BID levy but may choose to recoup this from visitors to their accommodation by a bill supplement or similar. The charge will contribute to the enhancement of the overall guest experience and help to expand the city’s visitor economy.

The Liverpool ABID Charge is similar to established schemes in cities across Europe and North America and, if approved by ballot of levy payers, will be chargeable from 1st June 2025.

Many regions and countries across the UK and Europe implement, or are working on, different ways of enabling tourists to make a contribution to the local visitor economy, and help meet the costs associated with supporting a great visitor experience.   The income made from this could be put towards a myriad of projects including improvements in public realm, events and other attractions, which make for a more successful visitor experience and hence increase the number of hotel stays.

This Accommodation Business Improvement District (BID) proposal uses established BID legislation, to establish a form of ABID Charge.  Unlike many Tourist Taxes, the Accommodation BID is accountable for the money that is raised, rather than the local authorities.  This allows the private sector to govern the way it is spent, by an operating board formed by the businesses who contribute to it.  In this way, the investment can deliver bottom-line benefits for the contributing businesses

Other examples of tourism BIDs exist in Blackpool, Great Yarmouth, Tweed Valley, Moray & Speyside, and Loch Ness. The Scottish BIDs cover types of business such as accommodation, restaurants, museums and galleries, and self-catering holiday lets. The amount of BID levy paid is based on the rateable value of a business’s property. Manchester has an accommodation levy of  £1 plus VAT

Next summer, visitors to Edinburgh will pay a 5% tax for overnight stays. The city’s councillors voted in favour of the tax, which will take effect from 24 July 2026, covering hotels, bed and breakfasts, self-catering accommodation, and private lets such as Airbnbs.

This summer, a Liverpool ABID Charge could be introduced in Liverpool as accommodation providers are being asked to vote on the measures proposed by Accommodation BID.

The two initiatives are not the same but are part of a wider strategy to help support a visitor economy in a sustainable way. Both are overnight levies that will generate income that will be re-invested in the city. Yet the contrasts between them illustrate the different options available for visitor levies.

Visitors in Edinburgh will pay a 5% fee per night. In Liverpool, the proposed ABID Charge would see a £2 levy charged per room per overnight stay. In Edinburgh, the levy is expected to raise £50m. Liverpool’s ABID Charge is estimated to bring £6m into the city. In Edinburgh the 5% will be capped at five nights.

The 5% charge in Edinburgh has been instigated by the city’s Council and the levy will be spent on “developing, supporting and sustaining facilities and services” both for and used by those visiting overnight for leisure or business. This includes housing, city operations and infrastructure, culture, heritage and events and destination and visitor management.

Liverpool’s ABID Charge will be invested in destination and visitor marketing and attracting major events. The levy in Liverpool will not be used for the core services delivered by the city council, as the levy is not administered by the local authority.

In Liverpool the ABID Charge is administered and managed by a board made up of the Accommodation sector through the Accommodation BID. This is a critical difference between the two as in Edinburgh it is managed by the city council and the accommodation providers will receive a fee to help administer it. In Liverpool, sector leadership will ensure that any concerns can be tackled at both a strategic and operational level, giving the sector a greater say on raising a levy to help to target a specific issue – that of increasing tourism and overnight stays, supporting the visitor economy.

Read more on Edinburgh’s Visitor Levy here https://www.edinburgh.gov.uk/news/article/14141/edinburgh-declares-scotland-s-first-visitor-levy

Read more on Liverpool’s proposals for a City Visitor Charge here https://liverpoolbidcompany.com/liverpool-could-have-a-city-visitor-charge-by-june-2025/#:~:text=Liverpool%20could%20charge%20overnight%20guests,of%20the%20city’s%20Accommodation%20BID.