Hotels and music venues have hit out a mayor’s plans to introduce a tourism tax.
In September, the government confirmed plans to allow local leaders to introduce a levy targeted at tourists staying in hotels, bed and breakfasts and other types of accommodation in their regions.
North East Mayor Kim McGuinness has said she will bring in the fee and it would boost jobs, while Tees Valley Mayor Ben Houchen has said he will not. Local authorities within McGuinness’s jurisdiction have also attacked plans for the levy.
Newcastle music venue owner Kate Hodgkinson said McGuinness’s tax plans were ill-thought out, while Rothbury landlord Debbie Noble said they would put visitors off.
Variations of the tourism tax already exist in parts of the UK.
In Scotland local authorities can charge a visitor levy on overnight accommodation.
For example, in Edinburgh the rate is 5% for those staying overnight in hotels, bed and breakfasts and self-catering facilities – capped at five nights.
Whereas in Liverpool, visitors to some hotels must pay a £2-per room overnight charge as part of a business-led scheme.
In March it was revealed the levy had so far raised about £10m.
The body behind the scheme pointed to the fund’s success in helping to bring events such as the Labour Party Conference and the World Chess Championships to the city.
Hodgkinson, who owns Cobalt Studios in Ouseburn, said Newcastle was too quiet in the summer without its students and more needed to be done to encourage people to visit at the height of the tourist season.
She said the tax plans were “counterintuitive” and instead called for the mayor to put up taxes on empty buildings in the city to fund a boost of local tourism.