• Swindon & Wiltshire Economy
• Friday March 7 2025
• Author Name: Peter Davison

Bristol hoteliers concerned by ‘tourist tax’ plans

Bristol hoteliers have hit out at plans floated by Bristol City Council to introduce a ‘tourist tax’ in the city.

The council last week approved an amendment to carry out a feasibility study into introducing a visitor charge.

At its recent budget-setting meeting, the council agreed to raise council tax by 4.99 per cent, and set about a cost-cutting programme that would save the city £77 million a year until 2030.

The Lib Dem group on the council called for a feasibility study into a visitor charge, which would see hotel guests paying £2 extra to stay each night.

While councils in England do not currently have the power to introduce a tourist tax – which requires legislation from central government – Manchester and Liverpool, among others, have been able to generate income by imposing taxes on accommodation through business improvement districts.

However, hoteliers say the tourist tax proposals could have an adverse effect on the city’s hospitality sector.

Raphael Herzog, chair of the Bristol Hoteliers Association, said: “Many European cities have tourist taxes, but this is where hospitality is taxed at five per cent VAT rather than the 20 per cent here.

“We have repeatedly called for a lower rate of VAT to be applied to our sector but our pleas have fallen on deaf ears.

“With increases in the minimum wage and the raising of employer National Insurance contributions, the last thing we want to see is yet another challenge to our businesses.

“It feels like, once again, we are being hit for no sound reason.

“Why would a guest pick Bristol, and pay a tourist tax, when there are plenty of other cities they can visit which do not impose additional charges?

“It would surely impact on the number of people wanting to visit Bristol compared to other cities.”

The association is also angry that businesses operating in the so-called sharing economy, like Airbnb, are unregulated and not subject to similar taxation.

“We believe AirBnB properties should be limited to being let for no more than 100 days per year,” said Raphael.

““Without action being taken, AirBnBs affect the availability of housing for those for badly need it as well as taking a significant share of occupancy from hotels and B&B businesses.

“Introducing an annual licence fee for short-term lets will create more of a level playing field among accommodation providers, whereas businesses like ours are only like to suffer more if a visitor charge is imposed.

“Bristol as a whole should be doing everything it can to encourage people to visit the city, not impose additional charges which might deter them from coming.”

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