Following the announcement that Bath and North East Somerset Council is considering implementing a “tourist bed tax”, the ALMR has warned against introducing additional costs for hospitality businesses.
Conservative Councillor Charles Gerrish has indicated that the local authority is considering the tax as a way of generating additional revenue.
ALMR Chief Executive Kate Nicholls said: “At a time when businesses are facing tightening margins and increased property and wage costs, and when pubs already pay a third of turnover in taxes, any additional costs burdens could have a hugely detrimental effect on revenue streams for retailers and undermine Bath’s economy.
“Businesses in Bath already contribute enormously through business taxes and engage in voluntary partnership work to promote the city’s fantastic hospitality sector.
“The Council may view the tax as a good way to increase revenue, but the effects on tourism spend in the city are far from certain. The Government’s own response to the Lyons inquiry states that local tourist or bed taxes could make the UK’s tourism and hospitality industries less competitive. With this in mind, we are urging local authorities to avoid increasing cost burdens for businesses in their areas and introducing taxes which may have an unfavourable effect on their own tourism offering.”