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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.