Hoteliers in Bristol fear a ‘tourist tax’ could do more harm than good and possibly prevent people from visiting the city – they say they need a ‘voice’ in any move to implement the charge.
The Bristol Hoteliers Association (BHA) has responded to the Government’s announcement this week of the Overnight Visitor Levy Bill, which will give regional Mayors the power to introduce a tax on overnight accommodation stays.
The Government says money raised by the levy can be reinvested into local areas.
Pramod Shaw, Deputy Chair of the BHA, said: “We are not opposed to investment in Bristol – quite the opposite; we love this city and are proud to represent it. But we have serious questions which must be answered before any so-called ‘Tourist Tax’ is introduced, and we intend to make sure those questions are heard loud and clear.
“Our industry has already absorbed significant financial pressures in recent years – soaring energy costs, increases in the National Living Wage and higher employer National Insurance contributions, which have all taken their toll. The Overnight Visitor Levy Bill has reignited fury across the business travel and hospitality industries, as this is not the time to add yet another cost to our sectors.”
Among the questions the BHA want to ask are where will the money generated by the levy actually go?
Pramod said: “The BHA would like cast-iron guarantees that revenue raised will be ring-fenced and invested directly into Bristol’s visitor economy, improving transport links, enhancing the visitor experience and marketing Bristol more as a destination.
“We need transparency, accountability and firm guarantees, not vague promises.”
Another question concerns whether it would make Bristol less competitive.
Pramod said: “Bristol does not exist in a vacuum, visitors have choices. Several industry bodies have already warned that the UK applies much higher VAT rates than many competing countries, and levies the highest air departure tax in the world. Adding yet another charge risks making Bristol a less attractive proposition compared to other UK cities that may choose not to implement a levy.”
And he challenged whether this would level the playing field with Airbnb and short-term lets, something the BHA has wanted for some time.
“If a visitor levy is introduced, it must apply equally to all accommodation providers – hotels, B&Bs, guesthouses, Air BnB, and short-term lets. It would be entirely unacceptable for regulated hotels, who already bear the full cost of compliance with health and safety, fire safety and licencing regulations, to shoulder this additional burden while unregulated short-term lets continue to operate outside it and enjoy an uneven playing field at our expense.”
Other concerns include who pays for administering the new charge – hotels do not want to become “unpaid tax collectors”, and Pramod said the city’s hospitality businesses should have meaningful involvement in designing any such scheme and in determining how the revenue it generates is invested. Thought should also be given to the visitors themselves – UKHospitality says a tourist tax could add as much as £100 to £120 to the average cost of a family holiday.
“Household budgets are already being stretched, with fuel and food costs, and people could be prevented from staying in hotels at all if there is yet another additional cost to consider. We are not simply saying no to the levy, but we are here to represent the interests of Bristol’s hospitality industry and ensure that any decisions made are in the best long-term interests of this great city.
“If a levy is introduced, it must be fair, transparent and must be invested back into the visitor economy. We need a solution that works for Bristol’s visitors – who come from all over the world – Bristol’s businesses and Bristol’s future.”
The West of England visitor economy generates around £2.7 billion in annual visitor spend and supports more than 43,000 jobs. The BHA believes this demonstrates why decisions affecting the sector require careful consideration and meaningful engagement with the businesses that welcome visitors to the region.
To find out more about the BHA, visit: www.bristol-hoteliers.co.uk
