Controversial plans for tourist tax that divided UK seaside town rejected

A controversial tourist tax that would have been implemented in a popular UK seaside town has been rejected after an investigation.

The tax could have cost families staying in Bournemouth, Christchurch and Poole (BCP) an extra £34 a week.

But the Secretary of State for Housing, Communities and Local Government has now rejected the plans after it investigated the planned tourist tax and identified an administrative error.

It discovered that multiple businesses were not allowed to vote on the tax reform after being accidentally left off the list created by BCP Council, the Bournemouth Echo reports.

Rosie Radwell, a local hotelier and chair of the Accommodation Business Improvement District (ABID), voiced her disappointment at the outcome after the tourist tax was appealed last year.

She said: “We are deeply disappointed by the outcome, as the ABID initiative was developed to address the challenges facing our tourism industry and secure a prosperous future for Bournemouth, Christchurch, and Poole as a leading UK destination.

“While this is disappointing, we respect the ministry’s findings and will work to address the challenges ahead. We will take time to reflect on the next steps.”

The ABID is a collective focused on improving the area by collecting funding for initiatives that help BCP’s residents and businesses.

Hotels were expected to start charging the tax in July 2024, but it was postponed just 48 hours after, as “many hotels have no confidence in the ABID Board”, an opposition spokesperson said at the time. 

The tax would’ve charged guests staying in larger hotels an extra £2.40 per room, per night. This would’ve meant an extra £33.60 for a family of four staying in two rooms for a week.

Last year’s vote, which has now been exposed for its administrative error, saw 16 hotels vote in favour of the tourist tax, and 15 vote against it. It supposedly would’ve generated an extra £2.6 million a year for the area.

Now there are no plans to introduce the tax in the near future, the ABID’s future is uncertain and the collective is trying to look for a way forward.

Radwell added: “We are grateful to all the businesses and stakeholders who supported the ABID and provided valuable insights throughout this process.

“Tourism is essential to our local economy, and we remain committed to exploring new ways to protect and grow this important sector. The ABID board will now reflect on the outcome and engage with stakeholders to determine the best way forward.”