'Tourist tax' described as "sensible first step" by South Yorkshire's mayor as Government lays out new powers
"A visitor levy in South Yorkshire would simply bring us into line with many other comparable European Cities including our friends over in Manchester”
South Yorkshire’s mayor has suggested a ‘tourist tax’ may be on the cards as the Government hands out new powers to regional authorities.
Mayor Oliver Coppard described a visitor levy as a “sensible first step” to fiscal devolution after Andy Burnham’s Government approved plans that would give local authorities greater freedom in how they choose to tax the tourism industry.
The changes mean that regional mayors can institute fees on overnight trips that would equate to a percentage of the cost of accommodation and feed back into public services.
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Mayor Coppard said: “We have a huge amount to show off in South Yorkshire, from the World Snooker Championships to the St Leger. That’s why tourism now brings in £4 billion to our economy every year, with that number only set to grow.
"A visitor levy in South Yorkshire would simply bring us into line with many other comparable European Cities including our friends over in Manchester, meaning visitors to South Yorkshire will make a small contribution to the services they use.
“I’m pleased the Government are giving us that power and allowing mayors to decide what’s best for their own places. A tourism levy seems like a sensible first step on the road to more fiscal devolution.”
At this stage there are no concrete plans to introduce a levy in South Yorkshire, with Mayor Coppard clarifying on the social media site LinkedIn that he has made “no final decision”.
During an interview with LBC he also suggested he would be speaking to the hotel industry and councils before anything is introduced.
“Local overnight visitor charges are a common feature of stays in other British and European cities, including Manchester, where they provide much needed revenue to support local services,” he went on to say.
“In my view, that money should always go to services that benefit the local community and help support the visitor economy, for instance night buses or improvements to the public realm.”
The new plans come after a consultation which took place between November 26 last year and February 18.
Mayors will be given the power to introduce exemptions, such as for campsites, however can not simply identify whole localities to avoid the tax.
Andrew Carter, chief executive of Centre for Cities, said: “The overnight visitor levy is a great step forward for fiscal devolution. This marks the first time that mayors in England have gained more autonomy over funding.
“The overnight visitor levy means places will get rewarded for doing what they need to attract more visitors and grow their local economies.
“It’s good that the decision is left up to mayors because they know their areas best. Rightly, some will choose to introduce it, and some will decide it doesn’t suit their place.
“This shows the importance of mayors to the economic agenda. It will now be up to them to ensure their visitor levy is set at the right rate and that they do what they need to fulfil the potential for growth in their local hospitality industry, alongside their new powers.”