Tourism Business Improvement Districts Where the debate began and the questions we have been asking

Transcription

1 Tim Manso TBID

2 Tourism Business Improvement Districts Where the debate began and the questions we have been asking How can the public-sector and partnership funding and investment that underpins the development of tourism, be secured in the current financial climate? How can the growth targets shared by the industry, government, local and national lead bodies be achieved. Is the UK funding support model out-dated and increasingly irrelevant

3 Other visitor and travel taxes mask the true cost of being a tourist Road tolls common throughout Europe and America Bed taxes/tourist levies common throughout Europe and America Air passenger duty and fuel surcharges Departure taxes in Europe $14 ESTA fee to enter the USA Motorway user charges in Austria, Switzerland and Italy Schengen and other visa fees Variable exchange rates

4 What are TBID s and what makes them an attractive option? A BID is a Regulated Partn nership, where Businesses contribute a levy within a prescribed formula The levy and monitors calculated is set out in a prospectus which Business is balloted on The fundamental differencee between TBID s and Bed Tax is a Tax that is imposed where by a TBID is determined by the Business in the area and voted on by those Businesses

5 Model 1 A mandatory bed/visitor levy that is for general funds e.g. Rome charged by the local authority to raise finance Model 2 A mandatory bed/visitor tax that is collected on behalf of a public/private sector partnership and used to finance tourism related public services, event hosting and subvention, marketing, and major developments e.g. Tampa Bay Model 3 A mandatory National levy on visitors e.g. USA ESTA fee to finance national Promotion. Model 4 A sector-led business improvement district that raises funds on behalf of and controlled by stakeholders to finance destination-specific business-led tourism development programmes e.g. Napa Valley

6 Model 1 Rome On January 1 st 2011, Rome introduced a visitor levy of 1 3 Euros per night for every person over 10 years staying in lodgings and campsites generating 80 million Euros. These increases especially tax on accommodation will make it more difficult to compete with countries such as Spain and Greece, which have more competitive hotel prices. I don t think it will stop people coming to Rome but I think we will see groups choosing to go to other destinations instead, as we now have to add the charge when we sell tours Giorgio Sansa, a Rome- based tour operator, told The Scotsman. For the first time millions of visitors to Rome will leave behind a contribution to city services, which are for their use as well, Rome Deputy Major Mauro Cutrufo said Its a common practice around the world and will not damage tourism.

7 Model 2 Tampa Bay Bed Tax Hillsborough County (Tampa Bay) population over 1,195,317 in 1,000 square miles and 23,000 hotel rooms. Local occupancy tax is governed by Florida Statue Transparent and authorises counties to collect a tax on room rentals of 6 months or less with specific language on how the revenues can be utilised Enacted in 1978 in Hillsborough County Levy rate grown from 2% in 1978 to 5% in 2010 Bed tax in Hillsborough County is at 5%, which is the maximum allowed by state statute for the county Bed tax is collected on top of the county s 7% sales tax for a total 12% on purchased rooms. Receipts managed by the Tourism Development Council the DMO reports to the Tourism Development Council

8 BIDs and TBIDs in the UK TBIDs two key points TBIDs will operate under exactly the same legislative framework as conventiona BIDs so there will be many similarities. BID regulations are already flexible and they allow the development of projects tha fits local circumstances and meets locally defined needs

9 BIDs and TBIDs BIDs and TBIDs the common ground The role of billing authority Responsibilities of the TBID proposer The way the ballot works The rights of the levy payers The development of the business plan Need to demonstrate real addedd value

10 BIDs and TBIDs BIDs and TBIDs share identical processes Consultation Scoping Governance Planning Balloting Delivery and review

11 BIDs and TBIDs BIDs and TBIDs what they might deliver Sales and marketing campaigns Events Research Business Support Tourism services Capital investment

12 BIDs and TBIDs TBIDs what they are and what they are not TBIDs are business led projects that only happen with the support of levy payers All funds are 100% hypothecated and the project is managed by a business le partnership representing the interests of the levy payers. TBIDs are not tourist taxes. If businesses do not support of they have an alternative idea Business Support a TBID proposal because they feel it is not necessar to finance growth, it simply doesn t happen. TBIDs are built upon a shared understanding of the challenges and opportunities.

13 BIDs and TBIDs TBIDs and BIDs the likely differences The geography Defining the levy payer Setting the levy The process of evolution

14 BIDs and TBIDs TBIDs and BIDs the elephant in the room? How to deal with overlapping TBIDs and BIDs Night BIDs and BIDs Night BIDs and TBIDs Night time levy and everything else!!!!

15 BIDs and TBIDs TBIDs the next steps Early adopters group and England future funding group Feasible probably from 2014 Needs further discussion with industry partners Co-ordination with others active in BIDs Needs industry support clusterss to share best practice Requires political intervention to secure industry buy-in May need changes to legislation to facilitate cross-border TBIDs

16 Thank you Any questions