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Greater Cambridge Accommodation BID and Visitor Levy

Meeting: 25/03/2024 - Strategy and Resources Scrutiny Committee (Item 22)

22 Greater Cambridge Accommodation BID and Visitor Levy pdf icon PDF 223 KB

Minutes:

Matter for Decision

This report explains the context and outlines the recommended roles for the Council in the work being led by the Cambridge Business Improvement District (BID), to set up a new Accommodation BID (ABID), funded by a visitor levy, to provide the investment needed for improved management of the visitor economy in Greater Cambridge. 1.2 The levy has the potential to generate between £1.5m - £2.6m per annum over a 5-year business plan. This offers the opportunity to achieve a step change in the way the visitor economy is managed and has the potential to achieve significant benefits. 1.3 The Council is already a partner in the Cambridge BID and if the ABID goes ahead, would play a key role in the governance of the proposed ABID and would also be responsible for the ballot and levy collection, with all costs covered by the ABID.

 

Decision of the Executive Councillor for Community Wealth Building and Community Safety

To approve the recommended roles for the Council in the work led by the Cambridge BID, to establish the feasibility of an Accommodation BID (ABID) for the Greater Cambridge area which are as follows:

a) To support the approach being taken by the BID to secure investment for improved management of the visitor economy

b) To work as members of the BID and the Welcome to Cambridge Boards on the development of the ABID business plan to ensure alignment with the council’s priorities

c) To manage the ABID Ballot with council costs to be covered

If the ballot is successful

a) To work with the BID and Welcome to Cambridge Board on the development of the governance structure for the ABID

b) To manage levy collection from hoteliers on behalf of the ABID – with council’s costs covered

c) Continued partnership working with the ABID and Cambridge BID in the delivery of Council objectives for the benefit of the City.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

The Economic Development Manager and the Chief Executive Cambridge BID said the following in response to Members questions:

 

      i.         As to why just hotels are being levied and not Air BnB, current legislation was regarding business rates.

    ii.         Levy was for businesses that primary business was as a hotel.

   iii.         Coach parking had been an ongoing problem. Would require work with additional stakeholders.

  iv.         Business plan would not be about short stays but longer stays.

    v.         Want to spread benefit throughout the city.

  vi.         Would need training/info points, to have the ability to advise guests.

 vii.         Regarding homelessness, businesses would want to only invest in longer term solutions.

viii.         There were currently 12 Members on the board. The City Council would not be the decision makers however would have a place on the board.

  ix.         Issues around accessible tourism had been raised, were aware of the issue of getting people from A to B outside the city centre. Did not think that it could be worked on in years 1 and 2, however would work on after that.

    x.         Apartment Hotels would be included if there were more that 10 rooms.

The Committee unanimously endorsed the recommendations.

 

The Executive Councillor approved the recommendations.