Report of the Strategic Director (Growth and Development) and the Deputy Chief Executive and City Treasurer attached

The Executive considered a report of the Strategic Director (Growth and Development) and Deputy Chief Executive and City Treasurer, which outlined proposals for an Accommodation Business Improvement District (ABID) covering Manchester city centre and an area of Salford in the regional centre.  The report also sought confirmation that the proposals did not conflict with Council policy and that the Council put in place arrangements for the Chief Executive (as Ballot Holder) to hold the ABID ballot.

In recent years the city centre as the region’s economic hub has undergone transformational regeneration and benefitted from significant inward investment.  The visitor economy across Greater Manchester was worth £9.5billion and supported over 102,000 jobs, accounting for 8% of the people working in Greater Manchester, with most of this tourism activity clustered within the city centre.

Over the next five years, the tourism sector across Greater Manchester was set for a radical step change, powered by major investment in new attractions, accommodation, and visitor facilities. The proposed BID levy would support the development of the tourism and hospitality sector by providing additional funds for high profile, tactical marketing campaigns, by attracting more national and international business conferences and major sporting events to the city, by developing and attracting new consumer events to the city, and by improving the city’s welcome: helping to keep the entry points to the city centre cleaner, providing hosts at the railway stations and supporting hotels in ensuring secure environments for guests.

Following collaborative discussion, Manchester Hoteliers’ Association (MHA), supported by Marketing Manchester and CityCo, had stated that their preferred approach was the development of a private sector-led Manchester Accommodation Business Improvement District (ABID).  The ABID approach focussed on a proposal developed by and voted on by potential levy-payers. All relevant businesses would contribute, but within a structure where the businesses would control the levy raised.

Membership of the ABID would be limited to hereditaments that were identifiable by the relevant billing authority as hotels or short stay serviced apartments which had a rateable value of £75,000 or more and where within the ABID area.  The formula for the levy would take into account the numbers of rooms/units available per night, the number of nights per month and the STR Published ‘Manchester Average’ Occupancy rate for each month LESS 5%. All of this information would be collated by the City Council.

The ABID Proposal and Business Plan had been formally submitted to the Council, along with a formal notice requesting that the Council (as lead authority) instruct the Ballot Holder (i.e. Manchester’s Returning Officer) to hold a BID Ballot.

Decisions

The Executive:-

(1)      Note the receipt of the Manchester Accommodation Business Improvement District 2023 – 2028 proposal from the BID Proposer, Manchester Hoteliers’ Association.

(2)      Confirm that the proposals do not conflict with any policy formally adopted by, and contained in a document published by, the Council.

(3)      Delegate to the Deputy Chief Executive and City Treasurer the authority to instruct the Ballot Holder to hold a BID ballot.

(4)      Note that if the ABID is approved, the Deputy Chief Executive and City Treasurer will be responsible for collecting the BID levy in accordance with the BID arrangements.