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Cambridge Is Thinking About Introducing a Tourist Tax at Hotels

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Cambridge is considering imposing a tourist tax at its hotels, with a suggested fee of £2 per guest every night. The Cambridge City Council recently produced a report that suggests a municipal fee like to those found in European cities, which is what prompted this thinking. This action is in line with Manchester’s introduction of a comparable program in April of last year.

As per the planned concept, hotels that have 10 rooms or more may charge £2 per room per night; in the third year of the project, the fee would rise to £3. The historic university city would be the target of investments made with the tax’s proceeds.

Over the course of a five-year business plan, the initiative is expected to generate between £1.5 million and £2.6 million in yearly revenue. Establishing an Accommodation Business Improvement District (ABID) would be the mechanism by which the levy from overnight hotel stays would be collected.

Notably, establishments like pubs that include lodging as a secondary purpose as well as self-catering choices like Airbnb would not be subject to this levy. Furthermore, subject to a voluntary agreement, university colleges that provide commercial bed and breakfast services outside of term periods may be exempt.

After meeting with hotels, Cambridge City Council’s manager of economic development, Jemma Little, expressed optimism. She emphasized that the Greater Cambridge catchment area hotels must vote in order for the ABID to be established, and that the hoteliers, not the council, will make the final choice.

The committee has decided to investigate these ideas further in order to prepare a possible ballot for hoteliers. The new ABID might go into effect as early as 2025 if it is approved.

What do you think?

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