Liverpool’s Tourist Tax Plans: How They Could Impact Visitors in the UK, Here’s All You Need to Know

Published on November 27, 2025

People in the Liverpool City Region (LCR) have not received a cut rate in the tourist tax because they have not made the changes necessary to be eligible. Uncertainty follows Rivera’s confirming to the LCR the right to govern a nightly charge for traveler accommodations. This has a caused a firestorm in the LCR’s tourism sector.

People and businesses in Liverpool and the surrounding areas want to know how the tax changes are going to help or hurt tourism. They are also asking if the local people are going to get something for the changes.

New Tourist Tax: What’s On the Horizon?

The concept of a tourist tax has been a topic of debate in the Liverpool City Region for several years. Mayor Steve Rotheram has long championed the introduction of such a levy, initially proposing the idea in 2017. As part of the government’s Budget, the decision was made to give regional mayors the power to implement a tourist tax on overnight stays, but details on its administration remain unclear.

The existing £2 City Visitor Charge in Liverpool, introduced in June, is a temporary measure. It currently applies to overnight stays in the city and will continue until the new levy scheme takes effect in 2027. While the current charge only applies to Liverpool, the new tax is expected to cover the entire Liverpool City Region (LCR), which includes Halton, Knowsley, Sefton, St Helens, and Wirral councils. This expansion would mean that tourists staying overnight across the entire region would be required to pay a levy, a move aimed at creating a more equitable distribution of tourism-related revenue.

Will Local Residents Receive a Discount?

One of the key issues under debate is whether residents of the Liverpool City Region will receive a discount on the new tourist tax when they stay overnight in the region. When asked by the BBC if someone from Liverpool would benefit from a discount when staying in a hotel in Southport or another part of the region, Mayor Steve Rotheram was cautious.

“We haven’t gone into the detail of how it would be administered yet,” Rotheram said, acknowledging that the mechanism for applying the levy is still under review. The issue is particularly complex because it will not be the local authorities that directly collect the tax; rather, it will be the responsibility of hoteliers, property owners, and operators of places like caravan parks. This raises questions about how to identify local residents and whether they should be exempt from the charge.

Rotheram also highlighted that identifying whether someone is a local tourist might involve passport checks, similar to practices in some European cities, where hotels take guests’ identification upon check-in to determine if they are residents. However, he cautioned that this process would likely be more complicated, given the range of accommodations, including those listed on platforms like Airbnb, which may not have the same guest check-in protocols as traditional hotels.

Economic Impact and Benefits for the Region

The introduction of a tourist tax, while still under development, is seen as a potential boon for the region’s economy. The Liverpool City Region’s visitor economy is already valued at more than £6 billion annually, and the tourism sector supports over 55,000 local jobs. Given the size of the local tourism industry, any revenue generated from the new tax could have significant benefits.

Mayor Rotheram has indicated that the new tax could raise up to £17 million per year, which would be reinvested into the region to support and promote its tourism sector. This funding could be used for various initiatives, from improving the visitor experience to maintaining and enhancing attractions that make the region unique.

As one of the most vibrant and culturally rich areas in the UK, Liverpool and its surrounding cities host millions of visitors each year. From the iconic Beatles attractions to world-class museums and art galleries, the region is a major tourism destination. By reinvesting revenue from the tax, authorities hope to further elevate the region’s appeal and support its long-term tourism infrastructure.

Potential Impact on Local Hotels and Accommodation Providers

Accommodation providers across the Liverpool City Region are likely to be directly affected by the implementation of the new tourist tax. The responsibility of collecting the tax will fall on hoteliers, Airbnb hosts, and operators of other accommodations, potentially leading to increased administrative burdens. For some smaller businesses, this could be a challenge, especially if they lack the systems in place to track and collect the levy.

However, many in the hospitality industry recognize the potential benefits. The revenue from the tourist tax could be used to fund projects that enhance the visitor experience, improve local amenities, and promote the region as a travel destination. With more funds available to improve infrastructure, hotels and other accommodation providers could see greater demand and potentially higher rates, especially if the city continues to invest in its tourism offerings.

Moreover, if part of the revenue is used to promote cultural events and festivals, accommodation providers might see a boost in bookings during peak seasons or for special events, such as concerts, football matches, or Liverpool’s popular International Music Festival.

A Closer Look at Regional Tourism Trends

The Liverpool City Region’s tourism is not limited to the city of Liverpool itself. In recent years, neighboring towns and cities such as Southport, Wirral, and St Helens have seen growing numbers of visitors. These areas offer unique attractions, such as beautiful coastlines, historic landmarks, and access to nature, making them appealing to tourists seeking a quieter alternative to city life.

Incorporating these regions into the new tourist tax scheme could encourage more balanced regional tourism. The revenue generated from visitors staying in less central locations could help boost local economies that depend heavily on tourism, providing a more equitable distribution of resources across the city region.

What’s Next for the Tourist Tax in Liverpool?

Possibly, all Liverpool City Region has left to do is implement a tourist tax and wait for all fully detailed processes around it to be completed. The tax system and structure need to be detailed, including the settlements of local constituents and the possible imposition of tax exemptions and/or discount schedules at the taxation base. Most hope skepticism around increases to the regional tourism sector funding for Liverpool is eliminated.

As municipal entities and other tourism providers finalize tax structure utilization, the Impact on the Visitor Economy as a whole will be substantial. As of now, the travel across the region will be constrained while all waiting for the details on the tax structure and the Impact on Travel are worked out.