There could be a TAX to visit Cornwall (soon)

For a while, the idea of a Cornwall tourism tax has been on the table. Visit Cornwall’s CEO Malcolm Bell first suggested it, pointing to places like Venice as an example of a destination balancing tourist numbers with local needs.

That’s changed. This month, the Government confirmed that mayors and what’s known as Foundation Strategic Authorities, which Cornwall is expected to be announced as very soon, will be given the legal power to introduce an overnight visitor levy.

This is a real power, handed down from Westminster, that Cornwall could use if it chooses to.

How the levy would actually work

SAINT IVES, CORNWALL - AUGUST 8: Tourists and locals enjoy the beach in St. Ives, in Cornwall, Southern UK August 8, 2010 in Saint Ives, Cornwall, UK.

Unlike some of the flat-fee tourist taxes you might have come across abroad, this wouldn’t be a set amount per night.

Instead, it would work as a percentage added onto the cost of accommodation and there’d be no official upper limit on the rate. Government sources have suggested most areas would likely keep it to a few per cent rather than anything drastic.

If a levy does go ahead, local leaders would need to set out by March 2028 exactly how the revenue would be spent.

This isn’t unprecedented in England either. Manchester already runs a £1 per room, per night City Visitor Charge, introduced under Andy Burnham’s time as mayor there, and Liverpool charges £2 a night.

Who’s actually pushing for this now

The clearest backing has come from the Prime Minister himself. Speaking in Truro last month, Andy Burnham said: “I am prepared to look at an overnight visitor levy for Cornwall… it’s something that tourists from Britain are paying all over Europe this summer, so actually it could be something of a game changer for Cornwall.”

He’s also pushed back directly on the idea that it’s unfair to visitors: “I don’t think people resent the idea of a few extra pounds on a hotel or Airbnb bill because you’re using the services. It’s not fair, actually, to pay for all of the services and infrastructure from council tax, that’s a burden that residents can’t carry on their own.”

The case against it

Bude, Cornwall UK July 6 2020. Summerleaze beach provide some fun waves for everyone, with suitable conditions for both experienced surfers and beginners.

Not everyone agrees, and the opposition is coming from people who know the industry well. Richard Bond, owner of Finest Retreats, the UK’s largest independently owned holiday let management company, has been blunt about it: “This is another blow to the UK’s tourism industry. Disguised as empowering local government, it’s essentially an anti-growth policy.”

He argues that if Cornwall introduces a levy and a neighbouring area doesn’t, holidaymakers might simply choose the cheaper option, taking seasonal jobs and trade with them. He also points out that hospitality businesses are already absorbing higher National Insurance and minimum wage costs, on top of everything else.

UK Hospitality has taken a similar line, writing to the Prime Minister to suggest a “holiday bonus” for households struggling with the cost of living, rather than adding a new cost onto a trip away.

Cornwall Council itself is divided

Even within the council, there’s no clear consensus yet. Cllr Sarah Preece, cabinet member for tourism, described the levy as “a potential gift and also a potential burden, as it’s one of those topics that will divide many people.“ She’s said a full engagement process with the tourism sector and residents would need to happen before any decision is made.

Cllr Andrew Mitchell raised a different concern entirely, that with Cornwall Council currently dealing with a leadership gap and a difficult budget position, the whole debate risks becoming “a distraction” rather than an easy financial win.

Meanwhile, Cllr Mick Barton of the Local Government Association struck a more positive tone, arguing that when a levy is “designed locally, in consultation with residents and business, it could enable significant investment in the wider visitor economy.”

Pros and cons

The banner of Saint Piran in the West Country with large blue sky background

There are some obvious pros and cons to doing this!

Potential benefits:

  • a new revenue stream for infrastructure, conservation, and local services, rather than relying solely on council tax
  • visitors who use roads, public transport, and waste services while staying here would be contributing directly to their upkeep
  • money raised locally stays local, rather than disappearing into general taxation
  • councils could borrow against the revenue stream, as Burnham himself pointed out, potentially unlocking bigger infrastructure investment

Potential downsides:

  • it makes Cornwall marginally more expensive compared to destinations that don’t introduce a levy, which matters in a cost-of-living squeeze
  • hospitality businesses, already dealing with rising costs, worry it could mean fewer seasonal jobs if visitor numbers dip
  • there’s a risk of visitors simply choosing Devon, or elsewhere, if Cornwall moves first and prices itself differently
  • managing and enforcing it adds administrative work for councils and accommodation providers alike

To me, coordinating with Devon still seems like the smart move, so Cornwall doesn’t end up pricing itself out of a market where visitors can just as easily holiday a few miles up the road instead.

A few pounds a night probably won’t put most people off visiting. But if Cornwall does go ahead, I think it’ll only work if visitors can actually see where the money’s going, with better paths, better toilets, better services, rather than it just disappearing into the council’s general pot!

What do you think? Now that this could actually happen, would you support a small nightly charge to visit Cornwall, or do you think it risks doing more harm than good?

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