A new tourist tax could be introduced across Liverpool from 2028.
The government has confirmed ahead of Wednesday’s budget that it will granted powers to Metro Mayors to impose an overnight accommodation levy.
Communities secretary Steve Reed announced that the Liverpool City Region is among those set to be afforded the option to add the charge to hotel stays.
A City Visitor Charge, which adds £2 plus VAT per night on hotels or serviced accommodation for visitors, is currently in effect until December 2027.
However the charge has faced opposition with Whitbread PLC, who own the Premier Inn chain of hotels, unsuccessfully challenging the ruling within days.
Under the new plans, there would be a two-tiered levy with one applying to the entire city region and another for Airbnb-style properties.
Metro Mayor Steve Rotheram believes that the new charge could generate up to £17 million for the local economy
He said: “This is something I’ve been calling for since I was first elected back in 2017.
“For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted.
“Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving. Until now, we’ve had no such option.
“So I’m pleased that the government has listened and acted – giving areas like ours the powers we need to support and grow our economies in a sustainable way.
“Our visitor economy is worth more than £6bn a year and supports over 55,000 local jobs.
“A modest levy could raise up to £17M annually – money that would stay local and be reinvested in the things that make our region stand out: our world-class culture, iconic events, vibrant public spaces and the infrastructure that ties it all together.
“It’s only fair that those who enjoy everything our region has to offer play a small part in helping to sustain it.”