Trade body wants 'tourist tax' pause during appeal

A trade body which represents the hospitality industry said a so-called "tourist tax" on hotel guests in Liverpool should not be levied while an appeal against the plan is being considered.

The £2-per-room per-night charge was introduced on Sunday after it was approved in a ballot by hotels which are part of the city's Accommodation Business Improvement District (ABID).

The aim of the fee, which is officially known as a "visitor charge", is to raise money to support Liverpool's visitor economy.

The scheme is facing a challenge from Whitbread plc, which owns the Premier Inn chain of hotels. Whitbread has not publicly revealed the reasons for its opposition to the charge.

Trade body UKHospitality said it had written to Liverpool's ABID to suggest the introduction of the charge be paused for eight weeks, pending the appeal outcome.

A spokesperson said: "UKHospitality is clear that as these decisions are made, the ballot process must be fair, timely and transparent.

"We have been made aware of an appeal against the Liverpool Accommodation BID and we have therefore written to the BID with a suggested eight-week delay to its introduction to allow for the appeal to run its course."

Bill Addy, chief executive of the Liverpool BID Company, which manages the Accommodation BID, suggested using the phrase "tourist-tax" was not helpful.

He said: "This is not a tax. Local authorities raise taxes, central government raises taxes.

"This visitor charge is an industry-led effort to boost the visitor economy, to have a say in how the hospitality sector is supported, and tackle the challenges it faces.

"This has been a process entirely guided by the private sector board of hoteliers – who are using Business Improvement District legislation to make a difference for their industry and their city."

Mr Addy added: "It's in the very DNA of Business Improvement Districts to support business and make cities thrive, and this is at the heart of this.

"It isn't a political issue, it's far more important than that."

The government has told the BID there was no requirement to pause the collection of the levy while the appeal process is considered.

Were the Secretary of State to declared the results of the earlier ballot void, money raised would be returned to everyone who paid it.

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