North East mayor calls for powers to introduce tourism tax 

North East mayor Kim McGuinness has called for powers to introduce a tourism tax to support the regional economy.

 

The Labour mayor had first announced plans for a £1-a-night tax on tourists during her election campaign.

 

Speaking to the Business and Trade Select Committee this week, McGuinness said regional mayors “need fiscal devolution powers”.

 

She added: “We’ve suggested a tourism tax and the ability to levy hotel rooms and overnight stays so we can then recycle that money into our regional economies.”

 

Only Manchester currently has a levy in place in the UK. But, cities including Edinburgh and Liverpool are set to bring in their own versions of the fee, while the Welsh government is looking to allow councils to introduce their own visitor taxes in the next few years.

 

Currently regional mayors do not have the power to introduce a tourist tax.

 

Depending on the location, there are two types of visitor charges cities and towns can consider: a tax imposed by a council, or a levy imposed by a consortium of local businesses – as is used in Manchester.

 

There has been considerable debate within the industry as to the impact of such schemes on tourism figures.

 

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