Liverpool businesses to vote on £2 tourism levy to support culture

Hotels and serviced accommodation operators in Liverpool are being balloted over proposals to introduce a nightly £2 tourism levy which would be added directly to a guest’s room bill and used to support culture in the city.

Members of Liverpool’s Accommodation Business Improvement District (BID) currently participate in a levy scheme that collects funds as a fixed percentage of a hotel or serviced accommodation’s rateable value.

However, the organisation says that a proposed supplementary charge would generate more income, which could be used to secure larger-scale sports and cultural events and support long-term museum and gallery exhibitions.

Figures from BID show that in 2024/25 a levy of 4.5% generated £784,635. For 2025/26 the levy has increased to 5.5% and is predicted to make £912,425.

In comparison, BID estimates that the introduction of an occupation-based levy of £2 per night for 2025/26 would generate nearly £4.3m.

The ballot will open for hotel and serviced apartment accommodation providers on 27 March and will be by post only, closing on 24 April 2025. The result will be binding.

If the new levy gets the go-ahead it will come into effect 37 days after the ballot result is published, which would be on 1 June at the earliest. It would run until 2027.

‘Funding has changed’

Chief executive of National Museums Liverpool Laura Pye said the change would support some of the “bigger stuff” in the city.

“Liverpool as a city is culturally really vibrant and has done fantastic things in terms of the visitor economy, but you need to keep ahead of the game. You have to keep investing to keep Liverpool on the front foot as a great destination”.

Annie Brown is the general manager at the Municipal Spa Hotel in Liverpool and also worked in Manchester on the visitor levy as chair of Manchester Accommodation BID, where she said the group was successful in working collaboratively with one aim.

“All UK cities need additional support as funding has changed,” said Brown.

“It is in the interest of the private sector in the city to both support and develop how we do things in the city centre. When we look at other cities, there has been concern about a visitor levy detracting from investment, but in reality, that hasn’t happened.

“It’s a small gesture for tourists to pay and it really helps the city to promote itself.”

Bill Addy, CEO of Liverpool BID, said the money raised could be used to support cultural events such as the Terracotta Warriors exhibition, which opened in 2018 at the World Museum, attracting 600,000 visitors and generating an estimated £78m across Liverpool.

“Major exhibitions and events, like the Terracotta Warriors, can attract a huge audience, generating income both for the visitor economy, the tourism industry and hospitality.

“What we would love, as both a city and a private sector, is to be able to support so that we can hold events like this much more regularly. The investment we are proposing could really turbo-charge the city’s economy.”