UK: Manchester will introduce a tax for overnight stays with guests paying £1 extra per night on their accommodation from April.
So far 74 hotels and short stay serviced apartments have signed up to the scheme although more accommodation providers are expected to sign up to the initiative.
The revenue from the new tax will be used to fund the new Manchester Accommodation Business Improvement District (ABID), which was set up to help the accommodation sector following the pandemic and the impact of Brexit, as well as the cost of living crisis.
ABID aims to encourage growth and visitors to the city for events and leisure breaks, as well as marketing the benefits of staying in Manchester for business.
A spokesperson said the scheme was a “direct response to significant challenges including recovery from the pandemic and the impact that Brexit has had on the hospitality sector.”
The UK hotel market has continued on its trajectory towards a strong recovery. Domestic leisure demand has been supported by a strong return to business travel and the trend of flexible working, which was born out of the pandemic, has generated new sources of demand – especially in the long stay sector.
The accommodation sector is dealing with challenging market conditions, including accelerating costs with food and beverage cost increases, as well as enormous hikes in energy, causing profit margins to decline. But according to the latest UK Hotel Trading Performance Review 2022 by global property adviser Knight Frank, in partnership with HotStats, Glasgow, Brighton, Manchester, Liverpool and Birmingham are the leading regional UK cities in terms of future hotel supply.
Of these cities, Glasgow and Manchester are set to record the highest annual supply growth. Glasgow is expected to see 5 per cent growth between 2022 and 2025, and Manchester is on track to see 4.7 per cent growth between 2022 and 2025, compared to a national average of 1.4 per cent growth forecast.
In November this year the City of Edinburgh Council approved plans for a £2 tax per person per night up to seven nights.
SAN recently reported about Adagio’s move into Manchester’s Northern Quarter and how room2 will be opening in the city in 2026.
