North East Tourism Tax Plan Draws Pushback From Venues
North East Mayor Kim McGuinness plans to introduce a levy on overnight visitors, saying it would fund major events and create jobs. But venue operators, a…
North East Mayor Kim McGuinness says she will introduce a north east tourism tax on overnight visitors, drawing objections from venue operators and four councils who warn the levy could make the region less attractive. The UK government confirmed in September that local leaders would be allowed to charge tourists staying in hotels, bed and breakfasts and other accommodation.
The dispute puts rural and city businesses on different sides of a central question: whether charging overnight visitors can bring in enough money to promote tourism without discouraging the people local firms rely on. McGuinness says the fee would fund major events and create jobs. Some business owners say the region needs to give visitors more reason to come before asking them to pay extra.
Why are businesses opposing the North East tourism tax?
Kate Hodgkinson, owner of Newcastle music venue Cobalt Studios in Ouseburn, called the plans “counterintuitive.” She said Newcastle was too quiet in summer without its students and argued that the region should do more to attract visitors during the peak tourist season.
Hodgkinson proposed raising taxes on empty buildings in the city to pay for a boost to local tourism instead. Her concern is that the levy could target visitors without addressing the broader need to make the area more appealing.
Debbie Noble, who runs The Turks Head Inn in Rothbury, said a charge could send visitors elsewhere. “Edinburgh is not Rothbury,” she said, pointing to the village’s limited tourist numbers during the week. Charging those who do visit more, she argued, could push them to choose another destination.
Noble said a levy aimed at boosting tourism in cities such as Newcastle and Sunderland should be paid by visitors to those cities, rather than rural visitors. The distinction matters for accommodation businesses outside the region’s urban centres, where visitor patterns can differ.
Andrew Golding, who runs the Point venue in Sunderland, said tourists needed more reason to visit before facing an extra charge. He welcomed efforts to attract large events but said they would not necessarily translate into spending at local businesses.
“A major event attracting thousands of people doesn't automatically mean those visitors spend money in local pubs, restaurants or grassroots music venues,” Golding said.
How would the levy affect local tourism?
The argument is not only about attracting visitors; it is also about where any revenue goes. Sam Booth of Newcastle music venue Lubber Fiend said he was not necessarily opposed to taxing tourists if the money were spent properly.
“A fraction of the money they [the mayor and local authorities] spent on the Mercury Prize would guarantee our survival for 10 years,” Booth said. He argued that support for grassroots venues could have a more direct effect on local music and the economy.
That concern points to the practical test for the policy: whether money raised from overnight stays reaches the businesses and attractions expected to benefit from increased tourism. The venue operators’ comments show that the levy’s acceptance may depend as much on how revenue is used as on the charge itself.
Four Reform UK-led councils in north-east England—Durham, Gateshead, South Tyneside and Sunderland—wrote to McGuinness in September to oppose the proposal. They warned: “Making the North East more expensive at the checkout risks driving visitors, spending and jobs to neighbouring regions.”
How do tourism charges elsewhere compare?
Tourism levies already operate in parts of the UK, but the arrangements vary. Edinburgh charges 5% for overnight stays in hotels, bed and breakfasts and self-catering accommodation, capped at five nights.
In Liverpool, visitors to some hotels pay a £2-per-room overnight charge through a business-led scheme. The body behind that scheme said in March that it had raised about £10m so far and pointed to support for events including the Labour Party Conference and the World Chess Championships.
The examples offer different models: a percentage-based charge in Edinburgh and a per-room payment in Liverpool. The North East debate now centres on whether a regional levy can deliver comparable tourism benefits without adding to the concerns raised by rural accommodation providers and local venues.
McGuinness has defended the plan as a way to compete with other areas and bring more activity to the region. “I guarantee this will create jobs and bring in thousands of tourists,” she said. She also said the fee would fund major events and that she was “not prepared to let the North East slip behind while others take our visitors.”
