An iconic seaside town could introduce a tourist tax despite facing a decline in tourism over recent decades. It comes after volunteer litter pickers previously called for the tax to be introduced to keep the area clean.
Weston-super-Mare, one of the country’s most famous Victorian seaside resorts, has suffered over the last 50 years due to the rise of cheap international holidays. Steve Reed, the local government secretary, confirmed on Tuesday (November 25) that mayors would soon be able to introduce a charge on overnight stays. The money would then be reinvested in transport, infrastructure and the visitor economy.
As reported by Somerset Live, the idea has been discussed in Weston-super-Mare previously and, for the first time, local authorities now have the power to enforce the tax. Although North Somerset Council leader Mike Bell (Liberal Democrat) said last year that it was “not the right answer”, he is now set to review how a tourist tax would work.
Mr Bell said: “Our visitor economy is worth nearly £200m a year and employs a large number of local people and is an important sector for us. I have previously been sceptical about the benefit of a tourist tax.
“Thanks to high levels of VAT the UK tourism industry operates at a disadvantage compared to European towns and cities. Holidays here attract 20 per cent VAT but in most of Europe it is just five per cent. We have to be careful not to make that price disadvantage worse.
“However, we must also ensure that the tourism industry does not place an additional burden on our already stretched local government finances, and if a tourism tax enables us to reinvest the income in services that make the area better for both visitors and our residents then I look forward to reviewing the detailed proposals in due course.”
North Somerset Council currently has a gaping £25 million black hole in its budget for the next financial year. It is currently discussing “exceptional financial support” with the government, which could mean a council tax rise of over 5%.
The power to introduce a tourist tax will lie with metro mayors. Although North Somerset Council does not have a metro mayor, the authority is in the process of joining the West of England Combined Authority.
West of England Mayor Helen Godwin (Labour) said: “Residents and visitors alike know how special our part of the world is, from our people to our culture to our nature. Tourism is now worth a record £2.7 billion to the West’s economy, which is a key industry for our new Growth Strategy over the coming decade.
“These new powers are a real vote of confidence in our region taking more control of our future. Proceeds from an overnight visitor levy, that people from across the West are used to paying on holiday ourselves, have the potential to support and enhance the sector’s businesses and workers – including with better transport options.”
The council is currently working to bring the Birnbeck Pier back to life in Weston-super-Mare. The Victorian-era attraction remains one of the major drivers of tourism in the town.