From 1 April 2023, Manchester became the first city in the United Kingdom to introduce a ‘Tourist Tax.’
In this article, we’ll be explaining exactly what the Tourist Tax is, how much tourists will have to pay and what the funds will be used for.
What is the Manchester Tourist Tax?
The Manchester City Visitor Charge is a new tax introduced on visitors to Manchester staying in hotels and other types of hospitality accommodations. As of April 2023, visitors will be charged an additional £1 per room, per night.
What Will the Money From the Manchester Tourist Tax Be Used For?
The funds collected from the tourist tax are intended to be used to help finance large events, conferences, festivals, marketing campaigns, and street cleanliness in Manchester.
It is expected to generate around £3 million per year, which will be directly invested in enhancing the visitor experience in the city.
How Was the Manchester Tourist Tax Decided?
The Manchester Accommodation Business Improvement District (ABID) initiated the introduction of the tourist tax. This is a group of 73 hotels and serviced apartments in the city who voted in favour of the levy scheme.
The ABID aims to create a more sustainable and thriving sector by bringing more visitors to the city, with almost 6,000 new rooms to be created over the next few years.
While the Manchester City Visitor Charge is seen by many as an innovative initiative to generate additional funding for the local tourism industry, it has also attracted concerns.
The UK Hospitality Chief Executive, Kate Nicholls, has warned that it is essential that funds raised from the charge are ring fenced for spending within the sector, rather than being used to cover general taxation matters.
Despite the concerns, the introduction of the tourist tax has been welcomed by the local authorities and the tourism industry in Manchester. The funds generated are expected to benefit the local economy as a whole and create new events and activities for visitors to enjoy.
Fresh thinking, smart support.
How can our experts helpEnforcing the Manchester City Visitor Charge
If you’re a business owner in Manchester’s tourism industry, it’s important to stay informed about the implications of the new tourist tax. Working with a qualified and experienced chartered accountant can help you to navigate the complex tax regulations and ensure that your business is compliant with the new levy.
At Ryans Chartered Accountants, we have extensive experience working with businesses in the hospitality and tourism sector. We can help you to manage your finances, reduce your tax burden, and grow your business.
Contact us today to learn more about our services and how we can support your business.