Liverpool Considers £2 City Visitor Charge to Boost Local Economy

Hotels to be asked to vote on measure, which could see £6m invested into city’s visitor economy 

Liverpool could charge overnight guests £2 a night as soon as June 2025, as hotels and serviced apartments operating in the city are asked to vote on a new City Visitor Charge as part of the city’s Accommodation BID. Hotels and serviced accommodation providers who are members of the city’s Accommodation BID are to be asked about implemtneing the measure, which would involve an alteration to its current arrangement. 

The proposal would see the charge, which would be administered by hotels, going directly into the visitor economy and helping to support its growth and development. It would also go towards improving the public realm, including street cleaning. This would relieve pressure on the public purse and would ensure that the hotel sector would get a say on how the funds were spent, helping to drive a more sustainable and viable visitor economy in the future. 

Accommodation BIDs are currently the only mechanism for the introduction of Visitor Charges. This allows for a clear purpose in the investment of the funding, ensuring a clear management and transparency for its use for key aims. 

The City Visitor Charge would see a £2 levy* added onto each overnight stay in the city. The levy generated would be administered by the Accommodation BID, a business improvement district governed by hotels and serviced apartment providers in the city. It would support  business conferences and destination marketing and make a significant impact in bringing major events to the city that generate overnight stays, alongside other BID services including street cleaning, improving the public realm and targeted marketing campaigns. 

The Accommodation BID, which began operating in January 2023, was voted for by 85% of Liverpool’s hotels and serviced apartments. Currently, a levy is paid on venues with a rateable value above £45,000. Part of that levy goes towards supporting a subvention fund, aimed at attracting major events to Liverpool that encourage overnight stays, for example the Labour Party Conference, business forums, exhibitions and health events. The ABID has invested £2.2m into the city economy, seeing a return of £77m economic impact. 

Hotels and serviced apartments are being asked to vote on a shift towards a change in levy calculation. This would use a figure based on the “Liverpool Average” calculating the levy using monthly occupancy rates. An independent audit would calculate the occupancy rate each month using STR data, This would be used as the basis for a supplementary charge, the City Visitor Charge, per room/unit per night for guests, added to accommodation costs. 

Instead of seeing a levy generating £900k per annum , a £2 City Visitor Charge could bring £6.7 million, over 2 years. towards supporting the city’s visitor economy. 

Members of Liverpool’s Accommodation BID, which includes hotels and serviced apartments within the city, are to be asked to vote in an alteration ballot, which could see the City Visitor Charge introduced in June 2025. 

The Accommodation BID is overseen by an operating board made up of key hoteliers and accommodation providers and an executive board. It is managed by Liverpool BID Company. 

Bill Addy is CEO of Liverpool BID Company,

“The purpose of the ABID is very clear in that it is designed to create a fund that is used primarily to attract major events, business, cultural and sporting, to the city. We know that overnight guests spend more money in the city than day trippers so encouraging more overnight stays, through conferences or major events spanning several days, generates a greater income for the city, be that through hospitality, retail cultural venues. Criteria is in place to specifically support business events that will attract business and inward investment to the city, highlighting its knowledge economy and commercial expertise. 

We have been talking with the sector very closely and a City Visitor Charge is something we want them to decide. It is hotels and serviced accommodation providers who would be administering it so therefore they should have the final say. The  method we are proposing reflects similar models across European cities  which work successfully and, if replicated in Liverpool, will translate overnight stays into major investment in attracting world leading and world beating events to the city.” 
Marcus Magee is Chair of Liverpool’s Accommodation BID. 

“This is an alteration ballot, which will ask the hotel industry to change the way we bring in funds. The change in the model is neccessary to help the city bring in more events, andLiverpool to compete with neighbouring cities. We are in a competitive visitor economy and it is vital that Liverpool holds its own. 

When we established the Accommodation BID we were clear that the private sector through our accommodation industry must have a say and this alteration gives them the same level of authority over decision making”. 
The majority of funds generated would be spent on a combination of a subvention fund (65%) and destination marketing (21%). £2.2m has been invested into attracting major events to Liverpool, by the city’s Accommodation BID. Ranging from the Labour Party Conference to exhibitions, festivals and health forums, the investment is designed to attract visitors to the city via a thriving events programme, converting into hotel stays. To date 36 events will be supported up to 2027, with 9 already delivered. 

Measuring twelve events across its first 18 months, Liverpool’s Accommodation BID has helped to bring £77m of economic impact into the city. Four of the major events brought to the city generated over 90% occupancy for hotels within the ABID.