Support has been shown for a potential ‘tourist tax’ for Cumbria, as it is believed it could address the ‘strain on local services’.

Community organisation Penrith Futures Partnership said such a tax would be positive for the whole county.

Dave Knaggs, a member of the group and member of Penrith Town Council, said: “A tourism levy could be a vital tool in addressing the strain on our local services.

“The influx of large-scale tourism imposes significant demands on our infrastructure, yet tourists currently do not directly contribute to alleviating the financial burden arising from their extensive usage. 

 

“A tourism levy could be instrumental in funding the maintenance of public spaces, including parks and footpaths, cycling routes, environmental protection projects, road repairs, and the upkeep of public toilets —services that tourists depend on and expect while visiting Cumbria.” 

 

In response to concerns that such a tax might deter tourists, Cllr Knagg said: “It could amount to a modest nightly fee, roughly equivalent to the cost of a McDonald's chocolate milkshake, or buttered croissant in Costa, or a half pint of beer.”

“It could bolster the industry by enhancing tourism infrastructure, expanding advertising and marketing efforts and enhancing the tourist experience.”

Such a tax has been criticised elsewhere, however, for several reasons.

There are general concerns that it would deter tourists who contribute greatly to Cumbria’s rural economy, and they will instead holiday elsewhere.

A lot of tourists in Cumbria are local as well, and there are concerns that increasing the cost of visiting tourist attractions would affect local wallets, and local economies as a result.

Some also suspect that tourism taxes will simply disappear into wider local authority budgets, with one of the largest challenges associated with tourism taxes is ensuring transparency in how it’s used, as it may just be seen as a way to get money off people who do not pay tax, which may then just become part of a local authority’s simple spending pool.

The partnership released a document supporting the idea and said that research by organisation ‘Responsible Travel’ found 90 per cent of respondents would willingly pay a tax of £2 or more a night when visiting the Lakes, which could generate £17.5million based on 3.5million overnight stays.

The group also said that several major UK cities, including Bath, Liverpool, Hull, Edinburgh, Birmingham, and London, are considering introducing tourism taxes, while Manchester’s scheme is already operational with the Business Improvement District (BID) managing the scheme.

The group said it believes that Cumbria, as a leading tourism county, could be ‘pioneering trailblazers in operating a gold standard scheme mutually beneficial for residents and visitors alike’.

Internationally, tourism levies are a common practice in renowned tourist destinations.

Supporters claim that they serve as a means to generate revenue, enabling local authorities to efficiently provide and maintain the services and infrastructure that underpin tourism's success.

The Partnership added that it hopes that its document, 'A Tourist Tax for Cumbria,' will be received as a contribution to the ongoing debate surrounding tourism taxes.

Its aim is to accelerate the debate so that, one way or another, Cumbria reaches an early decision that ‘benefits both its residents and the countless visitors who flock to our stunning landscapes and warm hospitality year after year’.

STR, an industry body for hotels, researched the impact of a potential tourism tax for Edinburgh.

They said that their research suggested that a tourist tax would see a reduction in spending for nine per cent of travellers who would choose cheaper accommodation to help deal with the cost of the tax.

They added that meanwhile, six per cent of tourists indicated they would have visited the city but stayed outside of it to avoid paying the tourism tax.

Combined with the two per cent who would not visit at all, they said this means that eight per cent of Edinburgh’s current overnight visitors would not be contributing to the proposed tax.

Managing director of Cumbria Tourism, Gill Haigh, said: “This is a complex area. 

“Voluntary visitor giving already raises huge sums for charities like Mountain Rescue, Fix the Fells and Cumbria Community Foundation. 

“Some suggest car taxes are possible, while others argue car parking is already a tax, raising monies for local government and national parks.

“Manchester accommodation providers recently voted for a levy, as opposed to a tax.

“Monies raised are ringfenced to support investment in marketing and events and further increase their occupancy.

“People often cite European destination tourism “taxes” but the difference is the VAT rate for accommodation is around half ours, meaning our government already benefits more than elsewhere.

“Cumbria is one of the top UK visitor destinations, home to two UNESCO World Heritage Sites – the Lake District and Hadrian’s Wall - and a place of international appeal. 

“Our county’s visitor economy, made up of hundreds of SMEs, is critical.

“26 per cent of jobs are linked to it and it, bringing in billions of pounds annually.

“It supports business suppliers from bankers and lawyers to builders, plumbers and food producers, and it contributes hugely to our place to live, work, study and invest.

“Our schools, public transport, retail and food and drink, cultural, arts and leisure offer would be very different without it.

“We must ensure our visitor economy continues to flourish.

“Our first call would be for a collective Cumbria discussion with the government, seeking changes to rules for allocation of central government funding to local authorities, currently based on its resident population.

“Cumbria Tourism has recently been accredited as one of the first Local Visitor Economy Partnerships in the country, with strong support from public and private sector partners.

“A key requirement is for Cumbria Tourism to work with a wide range of partners to prepare a Destination Management Plan (DMP) for the county, by December 2023.

“Through this plan partners, public and private sector are seeking to ensure a joined-up approach to support a successful visitor economy for the whole of the county, supporting economic growth, the natural environment and delivering social benefits for our host communities.”