Liverpool’s hospitality industry is facing a potential shift in its funding model, with a proposed City Visitor Charge aimed at generating greater revenue for the city.
If approved, the £2 levy would be added to the cost of overnight stays, helping to attract major events and support essential services.
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Aiming to boost Liverpool’s visitor economy
The proposal comes as part of an effort to enhance the city’s visitor economy. The levy would be collected by the Accommodation Business Improvement District (BID), which was established in January 2023.
As it stands, the BID already receives funds from a levy on venues with a rateable value above £45,000.
This money contributes to the subvention fund, which is used to secure high-profile events like the Labour Party Conference, exhibitions, and business forums that drive overnight stays.
Bill Addy, CEO of Liverpool BID Company, highlighted the importance of overnight visitors, stating, “We know that overnight guests spend more money in the city than day trippers, so encouraging more overnight stays generates a greater income for the city, be that through hospitality, retail, or cultural venues.”
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By GlobalDataThe ABID’s strategy has already yielded positive results. Since its inception, the BID has invested £2.2m into the local economy, generating a reported £77m in economic impact.
The proposed city visitor charge
The proposed City Visitor Charge, which could be implemented in June 2025, is designed to raise £6.7m over two years—substantially more than the current £900k generated.
The levy would be calculated based on occupancy rates, using data from an independent audit to determine the charge per room/unit per night. The supplementary charge would be added directly to accommodation costs for guests.
Marcus Magee, Chair of the Accommodation BID, explained the reasoning behind the proposed changes:
“The change in the model is necessary to help the city bring in more events, and Liverpool to compete with neighbouring cities. We are in a competitive visitor economy, and it is vital that Liverpool holds its own.”
Industry support and future plans
The proposed change in the levy system is subject to a vote from Liverpool’s hotels and serviced accommodation providers. The results of this vote will determine whether the City Visitor Charge will be implemented.
As Magee emphasised, this decision will be made by the industry itself: “It is hotels and serviced accommodation providers who would be administering it, so therefore they should have the final say.”
Liverpool’s proposed model mirrors successful schemes in European cities, where visitor charges have been used to fund tourism and event initiatives.
If successful, the City Visitor Charge could be a vital tool for Liverpool in positioning itself as a competitive destination on the global stage.
