Salford And Greater Manchester Pave The Way For UK’s New Tourism Tax, Aiming To Propel Economic Growth And Local Transport Innovation

Published on December 5, 2025

Salford, in collaboration with Greater Manchester, is set to implement a new tourist tax, aiming to drive economic growth and improve local infrastructure. This bold move is designed to generate vital funds that will be reinvested into the region’s transportation systems and the broader visitor economy, which contributes significantly to the local GDP. By introducing this levy, Salford is positioning itself as a progressive force in UK tourism, seeking to enhance the visitor experience while ensuring sustainable growth and infrastructure development for years to come.

Salford, along with the wider Greater Manchester area, is preparing to implement a tourist tax on overnight stays at hotels, B&Bs, and holiday rentals. This development comes after Greater Manchester Mayor, Andy Burnham, successfully campaigned for the introduction of this new levy. With the government’s recent move to give mayors of major cities the authority to introduce such taxes, Salford could soon be joining the ranks of cities worldwide that have adopted similar measures.

The tax, described as a “modest charge,” will apply to visitors staying overnight within the region. The revenue generated from this levy will be earmarked for local transport projects, with the aim of boosting the visitor economy. In Salford, the tourism sector contributes a significant £1bn annually, and the levy is expected to help support further growth within this industry.

While the government has allowed city mayors the freedom to impose this tax, businesses in Salford’s tourism sector remain uncertain about its potential impact on bookings. Tourist hotspots such as MediaCity UK, the Lowry Theatre, and Salford Quays may face challenges in maintaining their appeal to both domestic and international visitors.

Some local businesses have voiced concerns about the levy’s effects on their bottom lines. Travelodge, for instance, has issued a statement expressing that the impact of such visitor levies is unclear. The company also pointed out the lack of consistency in how the charges will be applied, as the decision to implement the tax and set the rate will be determined locally. The statement further noted the lack of transparency surrounding the levy and its potential to raise accommodation costs.

There are also questions surrounding the details of the government’s plan, particularly in terms of how it will be enforced. Though the idea is to provide mayors with the power to introduce a nightly tourism tax, the specifics of its implementation remain uncertain. This has left some businesses and industry leaders grappling with a degree of uncertainty.

The introduction of such a tax is not a new concept. Several top tourist destinations around the world, including cities like Venice and New York, already impose a similar charge. These destinations have used the funds generated by the tax to support local infrastructure, tourism promotion, and environmental initiatives. However, the idea of introducing such taxes in cities across the UK has raised mixed reactions, with some arguing that it could deter tourists from visiting smaller cities or less well-known destinations.

In Salford, the introduction of the tourism tax is expected to have mixed effects. While the funding generated could help improve local transport networks and further enhance the visitor experience, businesses in the tourism sector remain wary of how it will influence their customer base. Tourism experts suggest that more clarity around the implementation of the tax, including its rate and exact purpose, is necessary to gauge the full impact.

As the plan moves forward, it will be important for both local authorities and businesses to work together to ensure the visitor tax is implemented in a way that benefits both the city’s economy and its vibrant tourism sector. For now, the industry is keeping a close eye on developments to see how other cities that have adopted similar measures fare and to understand the long-term effects of such a levy on the broader tourism market.

The outcome of the tourist tax implementation in Greater Manchester, and Salford in particular, will likely set a precedent for other cities across the UK. While the potential benefits in terms of local infrastructure investment and economic growth are clear, balancing this with the needs of the tourism industry will be key to its success. As more details emerge, businesses in Salford and beyond will need to prepare for the changes ahead and consider how they can adjust to this new landscape.