A new tourist tax charged to visitors to the north-east of England could be set at £2 per night.
The government announced in November that North East mayor Kim McGuinness would be among local leaders being handed the power to introduce a new levy on overnight stays.
McGuinness had previously advocated for an additional £1 a night charge on visitors’ bills in her 2024 election manifesto, in order to raise funds to invest back into improving cultural attractions.
But she has now said that her office is currently drawing up plans based on a £2 a night tourist tax, which the Labour mayor said would generate about £20m per year.
Such a charge would apply to tourists booking hotels, holiday lets, bed and breakfasts and guesthouses across the region.
The government is currently running a consultation on its proposals to give England’s mayors to power to levy the tax, running until 18 February.
Local leaders are hoping to double the number of tourists coming to the North East over the next decade, with the region attracting the lowest number of international visitors in England.
McGuinness told the Local Democracy Reporting Service her office was “still working” on the plans but the charge would have to be £2 a night to raise £20m a year, based on current visitor levels.
“That is much lower than you see in most places across Europe,” she said.
A city visitor charge in Manchester, set at £1 per night raised £2.8m in its first year after launching in 2023.
Northumberland County Council Conservative leader Glen Sanderson warned recently that a tourist tax risked becoming “another burden” for struggling hospitality businesses, while Tory Tees Valley Mayor Ben Houchen has vowed not impose such a levy in his area.
But McGuinness said the charge would be critical to bolstering the region’s reputation.
“I cannot stress enough that every single penny of it will be spent on boosting the tourist economy and culture in our region, bring in those major events that have made a difference to everyone right across our region from rural areas to our towns and cities,” McGuinness said.
“This is not about propping up other services, this is 100% about having a positive impact on that industry and on attracting people to visit this great place.”
