Why it would be crazy to introduce tourism tax into Blackpool, say hoteliers

A huge debate about tourism tax and its impact on holiday areas has brought Blackpool into the discussion – and hoteliers have not pulled any punches.

Members of the town’s holiday trade say any attempt to introduce a tourism tax into the resort would be “bonkers” – and would not help the town.

Members of the holiday trade discussed the issue after it became a hot topic of national debate – and it has come to light that Blackpool could be eligible for the tax because of changes to local authorities.

Hotelier Ian White,  a member of StayBlackpool, says it would be unthinkable to introduce the tax to the town, because it would be almost impossible to make it work.

He said: “It would be practically unworkable in a place like Blackpool because there are so many unregulated operators in the holiday sector.

“How would the council collect it? It would end up coming down to a small number of people playing by the rules and a lot of them dodging it.

“It brings us back to the question of dealing with these unregulated operators in Blackpool/ We need the Government to bring in a scheme to make hotels more accountable, which would help everyone.”

Chris Rinder, of the award-winning Fossil Tree Hotel, said: “I can understand why they would want a tourism tax in a large city which just happens pull in a lot of tourists, like Barcelona or even Manchester.

“Lots of tourists can get in the way a bit and it’s way to maybe keep the numbers back, for the benefit of people who live there.

“But I think it would be totally bonkers to introduce it to a place like Blackpool, which is specifically geared towards tourism and relies on it so much

“You’d effectively be penalising people for staying overnight – and that is bound to put people off coming. It would be detrimental to this town.”

What is tourism tax?

A tourism tax is a small, mandatory fee added to accommodation bills or charged to visitors entering popular destinations, aimed at funding local services, infrastructure repairs, and sustainable tourism initiatives. Often charged per person per night, it helps communities manage the environmental, social, and economic impacts of high visitor numbers

It comes as concerns were raised in Devon and Cornwall about the possibility of a tourism levy following in footsteps of Manchester and Liverpool. West Country hoteliers are worried about is potential impact.

There is so much concern that it could hurt the tourist trade that hundreds of businesses, including Butlins, have written to Chancellor Rachel Reeves urging her not to introduce it.

Lancashire is the only other place that can introduce the tourism levy because of the new status of the combined authority.

Blackpool Council, Lancashire County Council, and Blackburn with Darwen Council formally launched the Lancashire Combined County Authority (CCA) on February 5, 2025. This body brings together the three upper-tier councils to control new devolved powers and funding from the government for transport, economic growth, and skills, with a focus on delivering a better economy.

Areas with city mayors are currently able  follow the Continental trend of cities like Venice, Paris and Barcelona.

In Liverpool, people are charged £2 per room per overnight visit, while Manchester’s voluntary scheme is set at £1 a night.

But although these sums appear small, organisations such as UK Hospitality say it could add £100 to a two-week family stay based on £2 per person per night.

Blackpool Council said they were unable to comment as the jurisdiction fell under Lancashire County Council, while Lancashire County Council were approached for comment.