Portsmouth City Council leader Gerald Vernon-Jackson calls for the introduction of city tourist tax

He raised the issue in his role as chair of the Tourism Board for the Local Government Association (LGA) in response to what he described as ‘dwindling budgets’.

Cllr Jackson said: ‘Council budgets no longer have the money to invest in tourist attractions. In 2005, Portsmouth Council invested £19m in the Spinnaker Tower. The tower attracts a lot of tourists and generates a lot of money for the local economy but if a similar opportunity arose under current parameters we would really struggle to find the money.’

With Portsmouth currently attracting 9.3 million visitor days each year and with new hotels such as the Premier Inn due to open on February 27, money generated could then be spent on facilities for tourists.

Cllr Vernon-Jackson added: ‘Any money raised through this tax would be ring-fenced for tourism. While it wouldn’t generate huge amounts this money could then be invested in making Portsmouth a better location for people to visit.’

Under current LGA proposals a £1 a night surcharge would be added to tourists’ hotel bills.

‘This is something which is successfully in place across Europe and in the USA in cities such as Los Angeles and Las Vegas,’ said Cllr Vernon-Jackson.

In Venice, guests at a four-star hotel are charged 4.50 euros a night, while in Amsterdam visitors are charged a seven per cent tourist tax plus 3 euros a night.

While the idea has been welcomed as ‘having merit’ from fellow councillor, Donna Jones, she is concerned about the implementation of the proposal in Portsmouth.

‘A tax such as this is used across many European countries and in theory a small surcharge on hotel rooms could work,’ she said. ‘However, while Cllr Vernon-Jackson’s idea has merit the execution causes me serious concern in regard to how the money would be spent and administered.’

Cllr Jones, the Tory group leader on the council, has questioned the financial track record of the Lib Dems.

‘He doesn’t have a good track record of financial management or delivery. The Northern Quarter scheme was badly handled and he submitted a weak and inadequate bid for St James’ Hospital,’ she said.

The ‘tourist tax’ proposal is due to be trialled first in Edinburgh.