Is Nottingham’s New Tourist Tax the Key to a Thriving Local Economy?

A leading hotel in Nottingham has expressed support for the city’s proposed tourist tax. On Monday, the Nottingham City Council backed plans for a £2 nightly room levy on short-term accommodations, aiming to generate significant revenue for local tourism initiatives.

Ellie Sherrocks from the Lace Market Hotel described the tax as a “real opportunity” to drive investment into the city. Sherrocks emphasized that the additional revenue could enhance tourism, attracting more visitors to Nottingham.

“We see this as a chance to increase tourism and showcase our city to more people,” Sherrocks said. “We believe the investment that will come back into Nottingham will boost tourism overall. We hope to see the funds used for new attractions and collaboration with other tourist bodies to attract more international visitors.”

It is estimated that about 3,160 rooms will be subject to the levy, potentially raising around £1.7 million annually. The funds could support various initiatives aimed at improving the city’s appeal to tourists.

Sherrocks highlighted the potential benefits for Nottingham’s event venues and sporting arenas. “With more investment, there’s a real opportunity to attract more events, further boosting tourism,” she added.

Tourist taxes are common in many European countries, including Spain, Germany, Belgium, and France. However, such charges are currently not permitted in the UK. Some UK cities, like Manchester, Liverpool, and Bournemouth, have introduced similar charges using a legal workaround involving the creation of an Accommodation Business Improvement District (BID).

BIDs are non-profit organizations, funded by businesses in sectors such as retail, hospitality, and leisure. These organizations aim to encourage local economic investment. Nottingham’s BID, known as It’s in Nottingham, has played a crucial role in advancing the levy plans.

Alex Flint, from Nottingham’s BID, underscored the importance of tourism to the city’s economy. “Tourism is hugely important to Nottingham,” Flint said. “Here in the Lace Market, we have notable attractions like the National Justice Museum and the Nottingham Contemporary. We also have a vibrant selection of bars, hotels, and restaurants, and a rich history to share. So, promoting these assets as widely as possible is essential.”

Flint explained that the extra revenue would not only support events but also improve the city’s environment. “The funds will help ensure clean streets, provide a warm welcome to visitors, assist them in navigating the city, and enhance transportation services,” he stated.

The proposed tourist tax will now be subject to a vote by accommodation providers, with a ballot planned for September. The outcome will determine whether the levy is implemented.

Flint expressed optimism about the potential positive impact of the tax on Nottingham’s tourism industry. “We need to make sure we are promoting all that Nottingham has to offer, from its cultural events to its historical sites,” he said. “The tourist tax is a step towards ensuring we can continue to attract visitors and provide them with an exceptional experience.”

If successful, Nottingham’s tourist tax could set a precedent for other UK cities considering similar measures. The additional revenue generated by such levies could significantly enhance local tourism infrastructure and services, making cities more attractive to visitors.

Tourist taxes in Europe have shown that such charges can be an effective tool for funding tourism-related projects and improving visitor experiences. Nottingham’s initiative could pave the way for a broader adoption of tourist taxes across the UK, benefiting the country’s tourism industry as a whole.

As Nottingham prepares for the ballot in September, the city’s stakeholders remain hopeful that the proposed tourist tax will gain the necessary support. If implemented, the levy could mark a significant milestone in Nottingham’s efforts to boost tourism and attract more visitors to the city.

The introduction of a tourist tax in Nottingham is seen as a potential game-changer for the city’s tourism sector. By investing in new attractions and improving infrastructure, the city hopes to enhance its appeal to both domestic and international visitors.

With the plans now moving forward, all eyes are on Nottingham as it seeks to become a leading example of how targeted levies can drive tourism growth and support local economies. As the city awaits the outcome of the vote, the potential benefits of the tourist tax continue to generate excitement and anticipation among stakeholders and residents alike.

As reported by the BBC in their recent article