Dorset Accommodation BID delays tourist levy billing following appeal

The Bournemouth, Christchurch and Poole Accommodation BID has delayed collection of its tourist levy until the appeal against it has been resolved.

In May, it was reported that the vote to form a Bournemouth, Christchurch and Poole Accommodation BID (ABID) had passed, which would lead to the introduction of a tourist levy.

Dubbed by some a 'tourist tax', the initiative would see 75 hotels in the region paying £2 per room, per night, with the proceeds raised being used to market and promote the region.

Earlier this week, it was reported that a number of Bournemouth hoteliers have launched an appeal against the introduction of the levy.

The appeal, which will now be considered by the Secretary of State, has been supported by 42 local hotels.

In a statement announcing the delay, Rosie Radwell, Chair of Bournemouth Christchurch and Poole Accommodation BID, said: "As with any new and innovative project, questions and anomalies arise that need to be addressed to achieve the Accommodations BID's goal: ensuring Bournemouth, Christchurch, and Poole remains a top visitor destination in the UK.

"We recognise the diversity of accommodation providers within our area, each with unique business models and clientele.

"While an Appeal has been submitted and it is inappropriate to comment in detail here, we remain confident in the integrity of the ballot and its adherence to the Regulations.

"The Bournemouth, Christchurch and Poole ABID, the first Coastal Accommodation BID in the country, is pioneering the way for destinations like ours.

"This process has been challenging due to the diverse range of hotels in the area and finding a 'one size fits all' solution has been complex. We are actively listening to Accommodation Providers and considering their feedback all the time.

"Many Accommodation Providers, regardless of their stance on the Accommodation BID would prefer to delay the levy collection arrangements until the appeal result is determined.

"Taking this feedback into consideration, the ABID Board met today and voted to delay levy collection until the outcome of the appeal, expected by the end of September 2024.

"We have written to all ABID Accommodation Providers informing them of the decision, detailing exactly how this will work, and would like to take this opportunity to highlight that it is only the levy collection arrangements and the Visitor Charge that are being paused whilst the appeal is determined.

"This does not affect the validity of the ABID or the need for the important work that it will carry out.

"This decision reflects our commitment to flexibility and our responsiveness to the voices of Accommodation Providers in the area. Once resolved, we will ensure all relevant processes are in place to make the Accommodation BID a driving force for positive change in our area.

"Our goal is to foster a thriving business environment in Bournemouth, Christchurch, and Poole, and we believe that through collaborative efforts, we can achieve this."

Part of the case made by the appeal centres around the fact that the ABID plans were only passed by one vote, with a number of hotels involved in the appeal claiming they were unaware a vote was being held, and would have voted against.

Before the statement was made, Dorset Biz News spoke to Paul Harper, the Commercial Director of Daish's Holidays, which is one of the businesses backing the appeal.

He explained: "Effectively, the levy that's passed makes 75 hotels, which probably make up less than around 50 per cent of the accommodation in Bournemouth, responsible for the entire destination and tourism marketing budget.

"We simply feel that the burden of financial responsibility is completely unfair and out of kilter when the other 50 per cent of providers - which number in the hundreds - will not be contributing anything."

He also raised concerns about the implementation of the levy, with comparisons drawn to other similar models in Europe.

"The European model is very different,  a lot of them will change depending on the seasonality and star rating. It's a much more nuanced model and it is something that has been widely accepted for many years," Paul said.

"We have a charge which is the same right the way through the summer as it is right away through the winter when demand is substantially less.

"Not only is it competitively unfair for those 75 hotels that are in the scheme compared to the rest, actually there is a huge variation in financial burden of the hotels that are within the scheme.

"When you look at the BIDs that have been done previously in terms of the Coastal BID and the Town Centre BID, they're always done as a percentage of your rateable value."

"Two pounds per night on a coaching holiday in January charged at £99 for four nights is not the same as it is on a room costing £200 per night."

Paul also raised concerns about the process of election the board.

In conclusion he said: "I'm sure this was done with the best of intentions, but what's actually transpired is something that is definitely not being supported by those people to whom it applies."

Several hoteliers say they have contacted BCP Council after the ballot was announced, ‘highlighting issues with the ballot’ and asking the council to declare the ballot void. They said BCP Council declined these requests.