Oxford Tourism Tax and Congestion Charge: Business Leaders Weigh In

Strategic Insights -

Oxford, a popular tourist destination, is considering introducing a tourist tax, also known as an Accommodation Business Improvement District (Abid), and a congestion charge to manage the city's growing tourism and traffic. The initiative has sparked concerns among business leaders, who fear it could be another burden on top of the proposed congestion charge. While some support the idea, others argue that it should apply to all types of accommodation providers, including university colleges, Airbnb, and serviced apartments.

Key Takeaways:

  • Oxford City Council is considering introducing an Accommodation Business Improvement District (Abid) to raise funds for tourism-related initiatives, which could raise £2.5 million per year based on a £2 room charge.
  • Abids have been successfully implemented in Manchester and Liverpool, raising £2.8 million and £2 million, respectively, in their first year.
  • Business leader Jeremy Mogford of the Old Bank Hotel, the Old Parsonage, and Quod Restaurant warns that the proposed congestion charge is a "massive threat" to business and that adding a tourist tax could be "another burden."
  • Mogford suggests that the money should be spent on promoting Oxford as a tourist destination rather than subsidising services that local councils should be providing.
  • Graham Jones, a member of Rescue Oxford (ROX) backing Oxford business, believes that the city is lacking facilities such as public toilets and that the cost of parking in the city is higher than in other tourist cities.
  • The city council estimates that hotels would raise £1.3 million per year and Oxford colleges would raise £1.2 million from the Abid initiative.
  • A city council spokesperson emphasizes that any decision to implement the Abid scheme rests with the accommodation businesses themselves, not the city council.

Statistics:

  • The estimated annual revenue from the Abid initiative: £2.5 million
  • The amount of money raised by the Abid scheme in its first year in Manchester: £2.8 million
  • The estimated revenue from hotels: £1.3 million per year
  • The estimated revenue from Oxford colleges: £1.2 million per year
  • The proposed temporary congestion charge: £5
  • The number of rooms in Oxford hotels: 2,300
  • The number of rooms in Oxford university colleges: 8,000

Sources:

  • Oxford Mail - The city hotelier who's raised concerns about Oxford's tourism tax
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