East Midlands mayor Claire Ward says a tax on overnight stays across Nottinghamshire and Derbyshire would be “no more than five per cent” and emphasised it would bring in millions for investment opportunities.
Visitors staying overnight at hotels, B&Bs, holiday lets and camp-sites across the East Midlands could soon be charged a levy, commonly known as a tourist tax, under new government plans.
Prime Minister Andy Burnham announced in September his government would give regional mayors the power to impose the levy in their areas.
Ms Ward, who heads the East Midlands Combined County Authority (EMCCA), says it is anticipated any tax would be no more than five per cent.
It is hoped the levy would improve the region’s offering to visitors, thus encouraging them to stay longer.
“We are at the start of this process,” she said, speaking at an event to launch Visit East Midlands.
“The Government has come back from its consultation and set out some terms before it brings through some legislation which will allow mayors and mayoral strategic authorities to make a decision about whether to implement an overnight visitor levy.
“I’ve said very clearly that I am so ambitious for this region, that if we want to deliver what’s in our visitor economy strategy, if we want to get that additional £1bn into our economy, then we need to invest into our visitor attractions and into that economy to help people to stay.
“I think the way of doing that is the overnight visitor levy.”
Ms Ward says more consultation and engagement will take place before any decision is made, including talking to businesses across the region to address any concerns.
Owners of independent, family-run hotels in Nottinghamshire previously said a levy would place an “additional burden” on an already-stretched and struggling hospitality sector.
In Lincolnshire, mayor Andrea Jenkyns has ruled out a levy, citing the hospitality industry as having been “hammered” and saying she did not want to drive people away from the region.
Ms Ward said it was clear from the government’s perspective the levy should be a percentage rather than a flat rate, and that it should be based on the room, not per person.
“Labour mayors, who are very much in favour of investing into their visitor economy and using these funds to do so, have said they would look at rates that were no more than five per cent,” she added.
“That doesn’t mean we will have a five per cent levy; it means they will certainly not go above that.”
By Joe Locker Local Democracy Reporter
- Lincolnshire mayor rules out ‘holiday tax’ across the region
- Derbyshire council criticises ‘tourist tax’ plans backed by East Midlands mayor
