Greater Manchester’s mayor, Andy Burnham, has called for the introduction of a compulsory tourist levy for visitors staying in the city’s hotels, replacing the current voluntary system.
At present, guests at city centre hotels are encouraged to pay the £1-per-night ‘City Visitor Charge,’ which funds the Accommodation Business Improvement District (ABID).
The initiative supports promotional activities for Manchester as a destination, contributes to street cleaning around hotels, and provides training for accommodation staff in security and counter-terrorism measures. In its first year, the scheme raised approximately £2.8 million.
Speaking on BBC Radio Manchester, Burnham said he believes the voluntary charge should be replaced with a statutory levy that would apply solely to visitors rather than local residents staying in hotels within the city region.
“I want a scheme that is mainly about visitors to Greater Manchester,” he stated. “People here already pay council tax, and they don’t generally stay in hotels. I know it happens, but largely it’s about those coming into the city.”
The mayor pointed to recent developments in other UK cities, highlighting that Edinburgh has already committed to a 5% visitor levy, set to take effect from July 2026, with the potential to generate £50 million annually. Glasgow has also voted in favour of a similar scheme, while Wales is considering its own version.
Burnham argued that a visitor levy would bring Greater Manchester in line with many European destinations where British travellers already pay tourist taxes. “At a time when public funding is under pressure, it seems fair to introduce a charge similar to what British tourists pay in France, Germany, and Italy.”
Supporters of the initiative highlight the benefits already seen under the existing voluntary scheme. Kumar Mishra, general manager of The Edwardian hotel, explained that the revenue raised has helped Manchester secure large-scale conferences and events, alongside boosting security and cleanliness efforts. Notably, ABID has reported no complaints from guests about the current charge.
The proposal will now be presented to the government as Greater Manchester seeks to join the growing number of UK regions adopting visitor levies to support local infrastructure and services.
Kate Nicholls, Chief Executive of UKHospitality, said:
“It’s really disappointing that the Mayor of Greater Manchester doesn’t seem to appreciate the damage a mandatory tourist tax would have on the city as a destination, which modelling shows would reduce visitor numbers and spending.
“It’s frustrating to see the oft-used comparison to other major tourist destinations charging visitors a tax used yet again, without recognition that those cities have a significantly lower rate of VAT – often half the 20% charged in the UK.
“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 £94 million 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.
“I’m pleased that the Government has been clear that it has no plans to introduce a tourist tax and we will be holding them to that commitment.”