Hoteliers in Bristol say a ‘tourist tax’ could put people off from visiting the city and be a disastrous blow to their businesses.
At its recent budget-setting meeting, Bristol City Council approved an amendment to carry out a feasibility study into introducing a visitor charge.
But the Bristol Hoteliers Association (BHA) say the authority could support their businesses more, and generate additional income, in many different ways
The Liberal Democrats had suggested people staying in Bristol could have extra money added to their hotel bills in order to help balance Bristol City Council’s books.
Councils in England don’t have the power to introduce a tourist tax – it requires primary legislation -but Manchester and Liverpool, among others, have been able to generate income by imposing taxes on accommodation through business improvement districts.
Several BIDS already operate in Bristol and many hotels contribute to them.
Hoteliers say the tourist tax proposals could have an adverse effect on the city’s hospitality sector.
BHA Chair Raphael Herzog said:
“Many European cities have tourist taxes, but this is where hospitality is taxed at 5% VAT rather than the 20% here.
“We have repeatedly been calling for a lower rate of VAT to be applied to our sector but our pleas have fallen on deaf ears.
“With increases in the minimum wage and the raising of employer National Insurance contributions, the last thing we want to see is yet another challenge to our businesses. It feels like, once again, we are being hit for no sound reason.
“Why would a guess pick Bristol, and pay a tourist tax, when there are plenty of other cities they can visit which do not impose additional charges. It would surely impact on the number of people wanting to visit Bristol compared to other cities.
“But there are ways to look at areas such as AirBnB, as this is not regulated at all. Other cities in Europe charge a licence fee of around £180 a year and cap the number of nights per year that people are able to rent out their accommodation.
“Bristol City Council could impose annual licence fees on AirBnB properties, which will provide an income as well as enabling the authority to better regulate the accommodation available in the city.
“AirBnB homes currently don’t have any of the regulations on them – and the associated costs of conforming to these regulations – that we have, which means they can afford to charge lower rates, which, of course, is a threat to our businesses, who have no choice but to meet the regulations.
“We believe AirBnB properties should be limited to being let for no more than 100 days per year, as well as being subject to controls around water and fire risk assessments and other health and safety checks.
“Without action being taken, AirBnBs affect the availability of housing for those for badly need it as well as taking a significant share of occupancy from hotels and B&B businesses.
“Introducing an annual licence fee for short-term lets will create more of a level playing field among accommodation providers, whereas businesses like ours are only like to suffer more if a visitor charge is imposed.
“Bristol as a whole should be doing everything it can to encourage people to visit the city, not impose additional charges which might deter them from coming.”