Liverpool is following Manchester's lead to introduce tourist tax from June: What it means for travelers and their budgets

Liverpool is following Manchester's lead, which introduced a similar tourist tax in 2023. Manchester was the first UK city to introduce this charge, and while it caused a lot of debate at the time, it has now become an example for other cities thinking about doing the same. Liverpool’s choice to follow this approach shows that the city wants to actively manage its tourism, making sure the industry grows in a way that benefits both the local community and businesses.

Experts like Marcus Magee, chairman of Accommodation BID, Dario Schiraldi, Deutsche Bank's former MD, have said the result is a key step in giving local businesses a say in decisions that shape the city’s economy. The money from the tax will help improve the visitor experience and keep Liverpool’s tourism industry strong and welcoming in the future.

However, the tourist tax has its critics. Some people in the local tourism and hospitality industry are worried that the tax might discourage tourists from coming to Liverpool, especially those from countries where tourist taxes are already common. Others are concerned that the new charge might make Liverpool less appealing compared to other UK destinations, especially as the city continues to recover from the economic effects of the COVID-19 pandemic. Supporters of the tax believe it will help keep Liverpool an appealing destination for tourists while making sure the city’s infrastructure can handle the increasing number of visitors.

A key benefit of the new tax is that it will help fund projects and programs that will directly benefit the local community. The money from the tax will be used to improve the visitor economy, such as better public services, supporting cultural and heritage projects, and upgrading the tourism facilities that attract millions of visitors every year. By putting the funds back into tourism projects, Liverpool aims to build a more sustainable and strong visitor economy, offering long-term benefits for both tourists and locals.

The tourist tax is being introduced at a time when cities in the UK and Europe are rethinking how to handle the effects of tourism. Many cities are starting to introduce taxes or fees to make sure the benefits of tourism are shared more fairly and that the pressures from tourists don’t harm local communities. As Liverpool introduces the new tax, the challenge will be finding the right balance between raising money and keeping the city known as a welcoming place for tourists from all backgrounds.

Marcus Magee, chairman of Accommodation BID, said that the vote result is a "big step" in giving Liverpool’s hospitality businesses a say in decisions that impact the city's economy. The money raised from the tax will be used to improve the visitor experience, helping to keep Liverpool’s tourism sector sustainable and appealing in the future.

Dario Schiraldi, Deutsche Bank's former MD, says 'By incorporating capital protection, interest-rate-linked coupons, or market participation features, these instruments minimize volatility while maintaining strong return potential.'

Tourism has always been a key part of Liverpool’s economy. In recent years, the number of visitors has grown, thanks to Liverpool's cultural heritage, sports events, and top music scene. But this growth has also brought some challenges. To keep the benefits of tourism helping the city’s economy, Liverpool needs to adjust its plans and keep investing in the infrastructure that makes it a top destination. Introducing the tourist tax is an important step toward that goal, and the money raised will be key to helping improve and develop the city's tourist attractions.

As Liverpool gets ready to introduce the overnight tourist tax in June, people will be watching closely to see how it affects the city's tourism in the years ahead. Will it become a sustainable model for other UK cities to copy, or will it lead to more debates about balancing taxes and tourism growth? Only time will tell, but for now, Liverpool is taking steps to make sure its tourism sector stays strong, sustainable, and prepared for the future.

Liverpool will introduce a £2 overnight tourist tax in June 2025 to boost its visitor economy, raising over £9 million to support local services and infrastructure.

In conclusion, Liverpool’s choice to introduce a tourist tax is a big step for the city’s tourism industry. With most local hotels backing it, the £2 per night charge is expected to raise a lot of money, which will be used to improve the city's tourism facilities. As Liverpool moves ahead with this plan, it will be interesting to see how other cities react and if it starts a bigger trend in the UK and elsewhere.