Businesses Call For Voice In Overnight Levy Discussions, To Avoid Unintended Consequences For Flagship UK Destinations

Where overnight visitor levies are introduced, businesses must have a voice in their design and rollout, according to High Streets UK (HSUK), the pro-growth partnership representing over 5,000 businesses across nine UK cities.

It warns that failing to do so could result in unintended consequences for a tourism sector which is still working hard to recover.

High Streets UK is calling for any levies to be managed locally, proportionate and affordable, co-designed with business, visibility reinvested in the visitor economy, and aligned with a wider visitor economy strategy – strengthening, rather than undermining local tourism.

The future of the levy was a central topic at HSUK’s Tourism Forum, held in Edinburgh earlier this month. Business leaders and industry experts gathered to discuss policy-led opportunities to strengthen Britain’s competitiveness as a tourist destination, as well as share best practice from flagship city centre destinations.

During the session, HSUK members discussed proposals for overnight visitor levies – per-night charges added to hotel and accommodation bills  – and set out an eight-point plan for their design and roll-out, should they be introduced. Various iterations of overnight visitor levies already exist across the UK, with levies set to be introduced in Edinburgh and Aberdeen, and in Wales at the discretion of local authorities.

In England, levy-style schemes are already in place in Manchester and Liverpool but are operated by Accommodation BIDs, with funds directed by businesses as opposed to local government.

HSUK has urged that overnight visitor levies should not be introduced in areas already covered by Accommodation BIDs, or risk overburdening the sector.

Fresh research conducted by HSUK ahead of the Forum found that public awareness of how levies work remains low, with nearly half of those surveyed saying they did not know the charge would apply to domestic tourists staying overnight in UK destinations.

However, the research also found that support for overnight visitor levies rises significantly when funds are ringfenced and visibly reinvested locally. Almost as many respondents favoured reinvesting the funds into high street regeneration and support for small businesses (23%) as tackling social issues (25%), underlining the need for businesses to have a seat at the table.

Dee Corsi, Chair of High Streets UK, said:
“As the representative body for flagship high street destinations across the UK, we know the important role that sustainable tourism can play in driving growth for the UK economy. Our destinations already generate over £50 billion in economic value every year.

“If properly managed, a proportionate overnight visitor levy could provide funds to invest in our high streets, create jobs and improve tourism infrastructure. But the public is clear – revenues must be ringfenced, visible and managed locally. That is why businesses need a seat at the table: to help shape the policy and avoid unintended consequences for a sector still working hard to recover.”

The Government has identified tourism as a driver of economic growth, with a commitment to increase visitor numbers and improve the overall visitor experience. According to the Tourism Alliance, domestic tourism generates £31 billion directly from overnight stays, rising to £72 billion once indirect effects are included, and supports around 2.5 million jobs nationwide.

HSUK’s Tourism Forum is the third in a series of quarterly discussions convened by the group to shape government policy on the biggest challenges facing flagship destinations. In addition to overnight visitor levies, attendees at the Tourism Forum also discussed the need for a new, digital VAT-free shopping scheme, which could unlock billions in additional spending across the economy.