Use of net proceeds
The Act stipulates that the net proceeds of a visitor levy must be spent on facilitating the achievement of the scheme’s objectives and on “developing, supporting and sustaining facilities and services which are substantially for or used by persons visiting [overnight] for leisure or business purposes (or both)”.
After administration costs, which includes the establishing and maintenance of a contingency fund, a fixed amount will be assigned to:
- Housing and tourism mitigation (£5m p.a.);
- Participatory budgeting (£2m over 3 years) with appropriate audit checks in place to ensure that these funds are spent on facilitating the achievement of the scheme’s objectives; and
- Reimbursement of 2% of remitted funds to Accommodation Providers, to off-set the administrative cost incurred from operating in accordance with the Scheme and collecting visitor data
The remaining funds will then be split into the following investment streams:
- City Operations and Infrastructure (55%);
- Culture, Heritage and Events (35%); and
- Destination and Visitor Management (10%).
The Council will make decisions on the use of funds after consultation with the Visitor Levy Forum (see details below), with these decisions delegated to the relevant executive Committees.
Reviewing and changing the scheme
The Council will review the scheme every three years to assess whether it is successfully achieving its objectives and to measure the impact of the scheme on businesses, visitors and communities. The review will be published along with a report detailing how the income has been spent and the benefits which the VL-funded projects have brought.
If the Council wishes to make changes to the scheme following the review, it will publicly consult on the change and publish a report detailing the decision and its justification. Significant changes to the scheme will require an 18-month implementation period.
Significant changes to the scheme include:
- Increasing the scheme area;
- Increasing the percentage rate; and/or
- Removing any exemptions