Cambridge considers tourist tax on hotels

Cambridge is considering a tourist tax on its hotels, which would be charged £2 per night.

The city may charge local fees to tourists staying at hotels, a common practice in Europe, according to a new report Cambridge City Council.

Following the launch of similar plans Manchester Last April.

Under the new proposals, visitors to hotels with 10 or more rooms could pay £2 per room per night, rising to £3 from the third year of the scheme.

Money raised from the scheme being considered by councilors could help fund investment in the historic university town.

The Manchester scheme currently charges £1 plus VAT per room per night.

The new proposals will see Cambridge raise between £1.5m and £2.6m a year over the five-year business plan, it is claimed.

The plan will be implemented through the creation of lodging business improvement districts (ABIDs), which will impose fees on overnight hotel stays.

The hotel will collect this data and pass it on based on the average occupancy set by the business plan.

However, services such as Airbnb and self-catering accommodation will not be affected by the tax.

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Neither will businesses where accommodation is a secondary function, such as pubs.

The report said some university colleges offer commercial bed and breakfast services outside term time but cannot charge a fee.

But the document said “a voluntary agreement is being explored with the relevant universities to cover the time of year when rooms are let on a commercial basis”.

Cambridge City Council economic development manager Gemma Little said initial discussions with hoteliers had been “positive”.

She added: “In order to establish the ABID, a vote would need to be taken on hotels within the catchment (in Greater Cambridge). This is not something that the council can decide on.”

The committee voted unanimously to continue exploring the proposals and move to a hotelier vote.

If the proposal is approved, the new ABID could launch as early as 2025.