North East Mayor Kim McGuinness says 'tourist tax' will help South Tyneside
South Tyneside Council ‘will consider the implications of the Government's proposals once further details are available’.
North East Mayor Kim McGuinness has welcomed the government’s move for regional mayors in England to be given the power to charge visitors a fee for overnight stays.
The amount charged in the North East is not yet known. But in Manchester there is now a £1 per room, per night City Visitor Charge and a £2 nightly charge in Liverpool. Hotels there choose to pool the money raised to support local tourism.
Labour’s mayors, including Ms McGuinness, have pledged to cap the fee at 5%. But the scheme is opposed by those who say it threatens trade and puts jobs at risk.
Ms McGuinness has suggested that what critics call the “tourist tax” would be beneficial to South Tyneside when annual Great North Run is being held.
She told the Gazette: “I want the North East to be known across the world as a place people want to visit, stay and keep coming back to.
“This weekend’s Great North Run shows the power of events to bring millions into the local economy and people from all over the world.
“A visitor levy could help us bring major international events to our region, back local businesses, improve visitor attractions, build on the 90,000 jobs already in this sector and unlock opportunities that come from a thriving visitor economy.
“Most importantly, the money raised here would stay here, helping us invest in the future of our region rather than waiting for Whitehall to do it for us.”
However, earlier this year Janet Bates, who owns the Forest Guest House in South Shields, said the charge would damage tourism.
She said: “Everyone in this town is struggling already with high fuel prices, high energy prices. Business energy isn’t capped and people forget that.
“I know they have it abroad but it won’t work here. Another tax is just another reason for people to stay away.”
Reform-run South Tyneside Council’s lead member for Culture, Leisure, Tourism and the Voluntary Sector, Cllr Elliott Curry, said: “Tourism is hugely important to South Tyneside and the wider North East, supporting local jobs, businesses and investment.
“We welcome opportunities to strengthen the visitor economy and will consider the implications of the Government's proposals once further details are available.”
However, party leader Nigel Farage opposes what he called a “holiday tax”.