Liverpool’s $13 Million Fund Turns Tourist Tax Into Hotel Demand Play

Liverpool has launched a new fund worth almost £10 million ($13 million) to help attract major events to the city, using money raised through its tourist tax.

The fund is backed by the £2 ($2.67) per room, per night levy introduced in June 2025 through the city’s Accommodation BID. Announced in March 2026, the initiative is designed to support events that bring more overnight visitors and increase local spending.

Most of the money is going to event attraction

Liverpool BID Company said nearly £7 million ($9 million) of the fund is expected to go toward supporting major events.

Another £1 million ($1million) will be used for destination marketing, while the rest will support the wider visitor economy. The focus is on conferences, exhibitions, and other events that can clearly show economic value for the city.

Liverpool wants to strengthen its overnight visitor economy

City business leaders say overnight guests are especially important because they bring more consistent value than day visitors. That is why the new fund is built around events that can generate bed nights and support year-round demand.

Liverpool wants a more stable visitor economy across the week and across the year. Business events can help achieve that because they often bring travelers during weekdays and outside peak leisure periods, when cities usually have more room to grow.

The city is building on recent event and hotel momentum

Liverpool says the levy has already contributed to events, such as the Labour Party Conference, the World Chess Championships, and the World Boxing Championships.

The city has also pointed to strong hotel performance, saying July 2025 delivered Liverpool’s highest monthly occupancy and that the city ranked among the top 20 globally for weekend occupancy in 2025.

The latest step is a formal application process

Liverpool has now published details of how the Conferences and Exhibitions Fund will work. The program will have two application rounds each year, with deadlines on May 29 and August 28. Organizers applying for support must show the economic benefit their event is expected to bring to the city.

Liverpool’s latest move also fits a broader shift in England, where overnight visitor levies are increasingly being seen as a tool to fund local tourism growth rather than simply raise extra revenue. That wider debate became more visible after the UK government moved toward giving regional mayors the power to introduce similar charges and use the proceeds for transport, cultural programs, large-scale events, and visitor services.

Photo by Atanas Paskalev on Unsplash