The Manchester hotel tourist tax is a £1 per-room-per-night fee (£1.20 with VAT) added to bills at larger hotels and serviced apartments in central Manchester and parts of Salford. It has been in place since April 2023, making Manchester the first UK city to charge an overnight visitor fee.1The Guardian. Manchester’s 1-a-Night Tourist Tax Comes Into Force Officially it’s called the City Visitor Charge, and strictly speaking it isn’t a tax at all. It’s a levy collected by hotels on behalf of an industry-run Business Improvement District.
What You’ll Pay and Where
The headline figure is £1 per room per night. Add 20% VAT and the actual line on your bill is £1.20 per night. The fee is per room, not per guest, so two people sharing pay the same as one.2BBC. Manchester’s Tourist Tax Raises 2.8m After First Year
It applies inside the Manchester Accommodation Business Improvement District (ABID) zone, which covers Manchester city centre and parts of Salford. Only paid accommodation businesses with a rateable value of £75,000 or more are required to collect it, which in practice means larger hotels and serviced apartment buildings.3Manchester City Council. Manchester Accommodation Business Improvement District Smaller bed-and-breakfasts and guesthouses fall below the threshold and don’t charge the fee. As of November 2025, 79 accommodation businesses were in scope.4Manchester Accommodation Business Improvement District. Contributors
The charge appears as a separate line item on your final checkout invoice, not as part of the quoted room rate.
Do You Actually Have to Pay It?
Technically, no. The City Visitor Charge is not a statutory tax on travellers. The legal obligation sits with the hotel, which is required to participate in the ABID and collect the levy. For the guest, the BBC has described the fee as an “optional levy,” and Mayor Andy Burnham has acknowledged it is not compulsory for visitors.5BBC. Manchester Tourists Should Pay Proper City Tax, Mayor Andy Burnham Says
In practice almost everyone pays it. The charge is added by default, the amount is small, and most guests don’t notice or query it at checkout. If you did push back and ask for it to be removed, you’d be relying on the voluntary status that the mayor himself has acknowledged. That gap between the formal rule and the practical experience is one reason the scheme has become politically contested.
Where the Money Goes
Revenue is managed by the ABID, which is run by the city’s hotel and serviced apartment operators rather than the council.6Manchester Accommodation Business Improvement District. Manchester Accommodation Business Improvement District The money is ringfenced for the visitor economy and spent on:
- Marketing campaigns aimed at driving overnight bookings and raising Manchester’s international profile.
- Bidding for major conferences, sporting events, and cultural festivals that fill hotel rooms.
- Cleaning and maintenance in hotel districts.
- Counter-terrorism and safety training for accommodation operators.
In its first full year the charge raised approximately £2.8 million, somewhat below the initial £3 million target.2BBC. Manchester’s Tourist Tax Raises 2.8m After First Year Manchester City Council has told Parliament that the ABID “provides a locally controlled and sustainable funding stream that supports both the bidding and delivery of major events.”7UK Parliament. Written Evidence Submitted by the Manchester City Council
How Manchester Compares
By international standards the charge is small. Barcelona charges up to €12 per person per night, Rome charges €10, Paris charges up to roughly €11 for five-star hotels, and Amsterdam adds 12.5 percent to the room rate. Berlin applies a 7.5 percent surcharge. Manchester’s flat £1 sits well below all of them.
It’s also small compared to US hotel taxes. In many American cities, combined state and local occupancy taxes run 15 to 19 percent of the room rate. A $200 night in New York City carries roughly $30 in hotel taxes and fees; the same stay in Manchester adds about $1.50.
Why the Charge Is Contested
Critics argue that the UK already stacks Air Passenger Duty, 20 percent VAT on accommodation, and other travel costs on international visitors, and that adding anything else, however small, dents competitiveness. There’s also a structural objection: because the money flows through a BID rather than a tax, it stays under hotel industry control, and some argue a proper tax directed by elected officials would better serve wider public priorities like transport or housing near tourist areas.
Supporters say £1 is negligible against typical Manchester room rates of £80 to £200, and that European cities charging far more still attract record visitor numbers. They also argue the BID model aligns payers and decision-makers, with operators choosing where their contributions go rather than handing money to the council.
What’s Changing Next
Mayor Andy Burnham has publicly called for the voluntary City Visitor Charge to be replaced with a statutory, compulsory tourist tax, which he has described as “a proper levy.” His proposal would exempt Greater Manchester residents staying in local hotels and apply only to out-of-area visitors.5BBC. Manchester Tourists Should Pay Proper City Tax, Mayor Andy Burnham Says
In late 2025 the UK government opened a formal consultation on giving Mayoral Strategic Authorities in England the power to create local overnight visitor levies. The consultation closed on 18 February 2026.8UK Government. Overnight Visitor Levy Consultation Under the proposals a future levy would be set as a percentage of the room price rather than a flat fee, with a possible national cap on consecutive nights charged and local flexibility for mayors to set exemptions. Any resulting legislation would likely be introduced through amendments to the English Devolution and Community Empowerment Bill.9House of Commons Library. A Visitor Levy for English Mayors
Elsewhere in the UK, Edinburgh has approved a visitor levy set at 5 percent of the accommodation price, going live on 24 July 2026 and applying to stays booked on or after 1 October 2025.10City of Edinburgh Council. Visitor Levy for Edinburgh At that rate a £150 room would carry a £7.50 nightly charge, several times what Manchester adds today. Wales has also legislated, with the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 allowing councils there to introduce their own levies if they choose.11The National Archives. Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 If English mayors gain the same powers, a percentage-based levy in Manchester would almost certainly cost more than the current £1.20.
For US Travellers
If you’re visiting Manchester from the US, the charge will appear on your hotel bill at checkout. For business travellers, lodging costs incurred while travelling away from home for work are generally deductible as ordinary and necessary travel expenses under IRS rules, and taxes or fees added to the hotel bill typically fall within that category.12Internal Revenue Service. Topic No. 511, Business Travel Expenses Keep the itemised checkout invoice, which will show the City Visitor Charge as a separate line within your total lodging cost. For leisure travellers, it’s a minor addition, roughly the price of a bottle of water from the minibar.