Background

Under the guise of a 'tourist tax' to raise destination management funds, Cambridge City Council & South Cambridgeshire District Council are set on helping forcing in a new Business Improvement District (BID) tax on 35 Cambridge hotels, and the hotels are being asked to fund this new BID tax by raising their prices. The BID proposal is due to go to ballot soon, in June / July 2024

The Councils want to make the hotels directly liable for the new Accommodation BID (ABID) tax, which is just like any other BID levy except the amount payable by the hotels will be based on estimated room occupancy instead of a percentage of rateable value. The estimated amount only 35 hotels will be directly liable to pay is £1.5mn to £2.6mn per annum!

Putting aside the pro’s and con’s of a tourist tax using the BID structure, hoteliers are not happy with the lack of consultation and engagement about the scheme by the BID proposers, and the lies being told by the proposer and Councils in order to try and sweet talk hotels into the scheme.

If Cambridge hoteliers are to do this scheme it must be done properly, following in depth consultation and engagement with all 35 hotels, and a well run ballot process by the Council.

If you are a Cambridge hotelier unhappy with the scheme and would like to make contact with the local campaign team against the ABID proposal, then please contact us.

The Bournemouth, Christchurch & Poole ABID proposal 2024 has not gone down well, and an appeal against the result supported by 42 of the 75 hotels has been submitted to the Government! Click here to read more.

Here is an example of the mistruths being pushed by both the Council and BID proposer.

UK Government

‘Unlike a tourist tax, a BID levy falls on business rate-payers, not on visitors.’

Cambridge ABID Proposer

‘The main difference is with the ‘traditional’ BID the levy is paid by the business, whereas with an ABID the levy is paid by the visitor not the business.’

Cambridge City Council

‘The key difference between an ABID and our existing BID is that the levy charge is passed onto customers and is not a direct charge on businesses.’

Here are some of the many concerns about the ABID scheme.

- Where is the consultation and evidence that imposing a tourist tax via an Accommodation BID is the best option available and will work for Cambridgearea?

- If you pay into a BID already you will still have to pay that, and pay this new one, and having a new big BID overlaid on the other BID will lead to duplication of effort, wasting money.

- Most Cambridge accommodation providers will NOT take part in this tourist tax scheme and no not asked to increase their prices. Why aren't all accommodation businesses taking part, surely everyone should pay proportionally into the pot, big and small? Wouldn't it make sense to include all hotels, Guest Houses, Airbnb’s and University holiday letting etc, and then maybe charge less or raise more funds collectively?

- The accommodation pproviders not included will gain an unfair advantage by advertising that they don't charge the ‘tourist tax’.

- There is no legal basis upon which to charge visitors, it is chargeable on a voluntary basis as a supplementary charge by each hotel. So there's nothing to make every hotel in the new BID charge customers.

- The hotels will be at a financial loss implementing the scheme given staff costs to administrate it and card fees for the extra overnight supplements being charged.

- There's misinformation being published already, and consumers will be misled that the charge is an official tax, when it's not. It's a scheme whereby hotels are being forced to raise their prices by the Council in order to recoup their BID tax charges collected by the Council.

- Why is the burden for funding Cambridge destination management budgets falling on just 35 hotels? What about others that will benefit in the hospitality and tourism industry?

- The BID levy structure is unlikely to take into consideration actual occupancy. This means hotels may not recoup enough in visitor charges to cover it, or may make a profit under false pretences which would be fraud.

- A BID is not required for hotels to group together and charge an overnight supplement as a visitors charge, it can be done now without a BID. What a BID does is force the hotels that don't want to be part of the scheme to be in it, if a majority vote for it.

- This BID proposal is being rushed without proper voter due diligence, engagement and consultation.

- The money will go to a private company with no public accountability or transparency.

- The levy calculation reporting and appeal rules are likely cumbersome and not clear.

There’s a lot to consider isn’t there?

1. **Arundel House Hotels (Cambridge) Limited**

   - Arundel House Hotel, 53 Chesterton Road, Cambridge, CB4 3AN

2. **Dalata Hotel Group**

   - Clayton Hotel, 27-29 Station Road, Cambridge, CB1 2FB

3. **InterContinental Hotels Group (IHG)**

   - Express By Holiday Inn, 15/17 Norman Way, Cambridge, CB1 3LH

   - Holiday Inn Express Cambridge West Cambourne, Back Lane, Cambourne, Cambridge, CB23 6FY

   - Holiday Inn Express Cambridge, Station Road, Whittlesford, Cambridge, CB22 4NL

   - Holiday Inn, Bridge Road, Impington, Cambridge, CB24 9PH

4. **Hilton Worldwide**

   - Hilton Cambridge City Centre, Downing Street, Cambridge, CB2 3DS

   - The Fellows House Cambridge, 33a Milton Road, Cambridge, CB4 1UZ

5. **Frasers Hospitality**

   - Hotel du Vin, 15-19 Trumpington Street, Cambridge, CB2 1QA

6. **Hyatt Hotels Corporation**

   - Hyatt Centric Hotel, 37 Eddington Avenue, Cambridge, CB3 1SE

7. **AccorHotels**

   - ibis Cambridge Central Station, 2 Station Square, Station Road, Cambridge, CB1 2GA

   - Novotel Hotel Cambridge, Square 2 Milton Avenue, Milton, Cambridge, CB4 0AE

8. **Whitbread PLC**

   - Premier Inn Hotel, Ring Fort Road, Impington, Cambridge, CB4 2GW

   - Premier Inn, Coldhams Lane, Cambridge, CB1 3EP

9. **Best Western Hotels & Resorts**

   - Quy Mill Hotel, Newmarket Road, Stow-cum-quy, Cambridge, CB25 9AQ

   - Royal Cambridge Hotel, Trumpington Street, Cambridge, CB2 1PY

10. **Greene King**

    - Red Lion Hotel, Station Road, Whittlesford, Cambridge, CB22 4NL

11. **Choice Hotels**

    - The Sleep Inn Hotel, Cambridge Services A14, Boxworth, Cambridge, CB23 4WU

12. **Travelodge Hotels Limited**

    - Travelodge Hotel, Chieftain Way, Cambridge, CB4 2JX

    - Travelodge, 180-190 Newmarket Road, Cambridge, CB5 8HE

    - Travelodge, Cambridge Leisure Park, Clifton Way, Cambridge, CB1 7DY

    - Travelodge, Four Went Ways, Abington, Cambridge, CB21 6AP

    - Travelodge, Huntingdon Road, Swavesey, Cambridge, CB24 4RD

13. **Edyn Group**

    - Turing Locke Hotel, 47 Eddington Avenue, Cambridge, CB3 1SE

14. **International Hotel Group (IHR)**

    - University Arms, Regent Street, Cambridge, CB2 1AD

15. **Independent:**

   - Cambridge Bar Hotel, Bar Hill, Cambridge, CB23 8EU

   - Duxford Lodge Hotel, Ickleton Road, Duxford, Cambridge, CB22 4RT

   - Garden House Hotel, Granta Place, Cambridge, CB2 1RT

   - Gonville Hotel, Gonville Place, Cambridge, CB1 1LY

   - Hotel Felix, Whitehouse Lane, Cambridge, CB3 0LX

   - Lensfield Hotel, 53 Lensfield Road, Cambridge, CB2 1EN

   - The Belfry Hotel, Back Lane, Cambourne, Cambridge, CB23 6BW

   - The Centennial Hotel, 63-71 Hills Road, Cambridge, CB2 1PG

   - The Regent, 41 Regent Street, Cambridge, CB2 1AB

   - The Varsity Hotel, 24 Thompsons Lane, Cambridge, CB5 8AQ

If your hotel is listed above, how well have you (and/or your head office if applicable) been consulted about this new BID tax scheme?

The thing is, the BID proposers don’t seem to be engaging with all the hotels, ask yourself why not?

We’ll tell you why, it’s because the proposers and the Council will be aiming for a low turnout ballot whilst motivating their few yes supporters, because they are afraid of hoteliers seeing through their spin and mistruths!

If you are one of the above hotels and would like to make contact with the local campaign team against the ABID proposal, then please contact us.