Manchester has announced plans to introduce a tax on people visiting the city for overnight stays.

Guests staying overnight will pay an extra £1 per room per night on their accommodation from April 2023, with 74 hotels and short-stay serviced apartments already signed up to the scheme.

The tax will be introduced in April 2023 and be used to fund the new Manchester Accommodation Business Improvement District (ABID), which aims to “improve the visitor experience” and “support future growth of the visitor economy” over the next five years.

The levy is applicable within the ABID area, which comprises establishments in Manchester regional centre with a rateable value of £75,000 or more.

The ABID has been set up to aid with the recovery of the accommodation sector following the pandemic and the impact of Brexit on the hospitality sector.

More establishments are expected to be added to the ‘tourist tax’ scheme in the coming years, as the city-region is set to see an additional 6,000 new rooms by 2024.

The ABID says that the funds will be used to amplify marketing campaigns that drive overnight stays; help secure large-scale events, conferences and festivals in low-season months; improve guest welcome and street cleanliness; and provide opportunities to future-proof the city’s growing accommodation sector and wider visitor economy.

Adrian Ellis, General Manager of the Lowry Hotel, Chair of the Manchester Hoteliers’ Association, and Interim Spokesperson for the Manchester ABID, said:

“The Manchester Hoteliers’ Association has been in discussion for several years to develop options to create new, additional funding that will support continued high performance and future growth of the visitor economy for accommodation providers across the city.

“The result of these discussions is the Manchester Accommodation Business Improvement District proposal, and I am delighted that hoteliers’ have voted in favour of creating an innovative, business-led solution to some of the problems we have been facing as a sector.

“A supplementary fee for guests, added to the final accommodation bill, is now an established norm within the travel sector across the world, and the Manchester ABID will now bring our accommodation sector in line with European and global counterparts and competitors.”

Bev Craig, Leader of Manchester City Council, added:

“These are exciting times for Manchester city centre with an unprecedented number of new hotel rooms being added and major new visitor attractions such as Factory International and Co-op Live due to open in the months ahead.

“Seizing that opportunity means ensuring as many rooms as possible are full all year round. We believe that targeted investment through the Manchester ABID will help support the accommodation sector – which plays such a vital role in supporting jobs in our city and adding to its overall vibrancy – to thrive.”

Edinburgh unveiled plans for a similar initiative last year:

Plans announced for Edinburgh tourist tax