‘Tourist tax’ put on hold amid hotel opposition

The first so-called coastal tourist tax in the UK, set to be introduced in parts of Dorset, has been put on hold following opposition from hotels.

A ballot of hoteliers in Bournemouth, Christchurch and Poole approved the levy in May, which would require guests staying in larger hotels to pay an extra £2 per room, per night.

More than 40 hotels have lodged an appeal with the government over how the ballot was conducted.

The Accommodation Business Improvement District (Abid) said it would postpone its introduction until the autumn, pending the appeal.

The levy, originally due to be introduced on Monday, was approved in May following a consultation.

Emma Russell of Leisureplex Hotels said it could cost her hotel – The Norfolk Royale – up to £60,000 per year.

She backed the appeal to the Department for Levelling Up and said the scheme’s introduction had been “rushed”.

“Customers were already saying ‘we’ll go elsewhere’ – it really won’t do any favours for Bournemouth’s visitor numbers,” Ms Russell said.

“Let’s get round the table and come up with something more commercially practical.”

She said the levy was “disproportional” as it is only paid by the 75 largest hotels.

Bournemouth, Christchurch and Poole (BCP) Council previously announced cost-cutting measures including an end to subsidies for the annual air festival after 2024.

Although English councils have no powers to impose tourist taxes, several, such as Manchester and Liverpool, have effectively done so via a legal workaround, according to a House of Commons briefing paper.

When it was approved in May, Abid said the levy would “strengthen and grow tourism” by generating £12m over five years to attract more visitors.

It said the visitor charge concept was commonplace in many international destinations.

Chair, Rosie Radwell, said she remained “confident in the integrity of the ballot”.

“This process has been challenging due to the diverse range of hotels in the area and finding a ‘one size fits all’ solution has been complex.

“We are actively listening to accommodation providers and considering their feedback all the time.”

BCP Council chief executive, Graham Farrant, said: “We are confident the ballot process has been carried out fairly and in line with legal regulations.”