Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: January 28, 2026

Purpose:

Content: This Council notes:   ·        Greenwich welcomes on average about 20 million visitors annually who generate £1.87 billion in tourism revenue and support 16,000 jobs, representing a 25% year-on-year growth in visitor spending and demonstrating the vital importance of tourism to our local economy. ·        The O2 Arena alone attracts high volumes of visitors due to its status as one of the world's busiest live entertainment venues, while Royal Museums Greenwich welcomes large numbers of visitors yearly to our UNESCO World Heritage Site. ·        Due to previous Conservative governments cutting local government funding, Greenwich’s finances were slashed by 53% between 2010-2024, the equivalent of losing out on £150 million pounds that could have been invested in frontline services for residents. ·        It’s support for the government’s announcement in the November budget that a devolved tourism levy would be available for Mayors in England to raise funds without needing approval from central government. That this money could then be re-invested in transport, infrastructure, and the local economy. ·        Money raised could then help fund local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors – without needing approval from central government. ·        That while Greenwich has maintained a record of responsible financial governance and balanced budgets, additional devolved revenue mechanisms are needed to help ensure we can deliver frontline services in response to changing demographics and surging demand. ·        It has been estimated that London contributes £32.5 billion more in taxes than it receives back, with only 7% of tax revenues returned through locally elected authorities - the lowest proportion of any major international city (31% in New York, 25% in Berlin, and 17% in Paris). ·        Manchester's pioneering £1 per night accommodation charge generated £2.8 million in its first year with no measurable impact on hotel performance, while Liverpool's new £2 per night visitor charge projects £9.2 million over two years, demonstrating successful UK precedents. ·        European cities successfully operate tourism levies including Amsterdam's 12.5% accommodation tax generating €240 million annually, Barcelona's charge producing €106.5million yearly, and Prague's €2 per night levy raising €36.5 million, all without deterring visitors. ·        The University of Manchester's rigorous study found "no significant effect on hotel performance" across five key metrics following tourism tax introduction, while academic research consistently shows tourism taxes have negligible effects on visitor numbers.   This Council believes:   ·        Greenwich and other local councils should be empowered by central government with revenue raising powers to introduce a visitor levy on hotel and short-stay accommodation, following the successful models established in Manchester and Liverpool through Business Improvement District mechanisms. ·        That a revenue sharing mechanism be included in the new visitor levy powers for English Mayors to ensure that local authorities such as The Royal Borough of Greenwich receive a majority share of revenues raised locally to re-invest back into the local community. That these funds can then be invested into improving and maintaining local services that support the local tourism economy including jet washing, street cleaning, bin collection and community safety enforcement. ·        That it is more important than ever for Greenwich Council to have these devolved financial powers given the financial pressures that local authorities face from increased demand and surging costs.  ·        A modest tourism levy of £3 per night could generate millions annually in critical revenue to help reduce our budget shortfall. ·        Revenue generated could be re-invested in additional tourism infrastructure development: bin collection, jet washing and street cleaning, additional community safety enforcement officers and assisting local businesses to grow and support the local economy. ·        This levy represents economic fairness, ensuring that those visitors who benefit from Greenwich's unique attractions - including maritime history and world-class entertainment venues - contribute fairly to their preservation and enhancement while council services face severe financial pressure. ·        The burden of maintaining infrastructure and services that support £1.87 billion in tourism activity should not fall solely on overstretched local residents struggling to make ends meet during the cost-of-living crisis when visitors could make a modest contribution without being deterred from visiting.   This Council resolves to:   (1)  For the Leadership of the Council to write to the Secretary of State urgently calling for London boroughs, including Greenwich, to be granted revenue sharing powers under any new visitor levy powers that introduce a visitor levy on overnight stays, highlighting our budget shortfall and the successful UK precedents in Manchester and Liverpool.   (2)   Work with London Councils, the GLA, the Mayor of London, the LGA and the government to ensure that local authorities receive a fair share of any potential revenue raised by visitor levys.