Cambridge City Council is mulling a £2 per night hotel tax per room per night for properties with a minimum of 10 rooms.
It would then increase £3 nightly in the third year.
According to a feasibility study commissioned by the council, it could raise up to £2.6m per year.
The city would set up the Accommodation Business Improvement District which would manage the collection of the hotel tax.
It wouldn’t affect short-term rentals or colleges which rent out rooms outside of term times.
“In order for the ABID to be established, there needs to be a ballot of the hotels within that catchment area. It’s not something the council can decide,” said Jemma Little, economic development manager at Cambridge City Council.
If approved, it could start next year.
Manchester recently announced a £1 plus VAT per room, per night hotel tax.
Tags: The city of Cambridge, tourist tax at hotels, Accommodation
