High Streets UK has called for businesses to have a voice in designing overnight visitor levies, warning that failure to consult could harm a tourism sector still recovering from the pandemic.
The group, which represents more than 5,000 businesses across nine UK cities, wants any levies to be managed locally, co-designed with business and reinvested visibly in the visitor economy.
The issue was discussed at High Streets UK’s Tourism Forum in Edinburgh earlier this month, where business leaders set out an eight-point plan for levy design should charges be introduced.
Overnight visitor levies per night charges added to hotel bills are already in place or planned across parts of the UK. Edinburgh and Aberdeen will introduce levies, while Welsh local authorities have discretion to implement them. In England, Manchester and Liverpool operate levy-style schemes through accommodation BIDs, with funds directed by businesses rather than local government.
Research conducted by High Streets UK found that public awareness of how levies work remains low. Nearly half of those surveyed did not know the charge would apply to domestic tourists staying overnight in UK destinations.
However, support for levies rises significantly when funds are ringfenced and reinvested locally. Almost as many respondents favoured reinvesting funds into high street regeneration and small business support (23%) as tackling social issues (25%).
Domestic tourism generates £31bn directly from overnight stays, rising to £72bn when indirect effects are included, and supports around 2.5m jobs nationwide, according to the Tourism Alliance.
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.”