Want To Increase Cultural Investment? Use Tourism Taxes

The taxes levied on overnight stays could fund much more than convention centres and marketing campaigns. They can make places more vibrant, inclusive and worth visiting.

From Saturday, April 1, everyone staying in Manchester will have £1 GBP added to their hotel stay per night. The tourist tax is a first for the U.K. and is hoping to raise north of £3 million GBP per year to invest in the city’s visitor experience. This tax, often referred to as a hotel occupancy tax or ‘heads in beds’ tax, is nothing new. It is a common occurrence around the world, especially in the United States, Canada and continental Europe. £1 GBP is modest. In New York City, a $1.50 USD ‘Javitt’s Tax’ and $2.00 ‘room tax’ was added to my hotel bill each night, on top of a 14% state and city room fee. This is becoming the case not only to stay in hotels, but also to enter countries. Europeans and other nationalities will soon pay a $21 visitor promotion tax to enter the United States, as the ESTA is increasing its cost by 50%. Venice is charging upwards of €10 euros to enter depending on the size of the group. Canada’s electronic travel authorisation, or ETA, is $7 CAD. The United Kingdom, by and large, is late to the party. And this tax is for participating hotels and accommodation providers, in one city.