Accommodation providers in south west London could be landed with a £2 nightly levy per room to boost tourism.

Richmond Council is investigating the proposed scheme, which could bring in an extra £600,000 a year to fund projects and services that attract more visitors to the borough.

The council would collect the charge through a new Accommodation Business Improvement District (ABID), which is a model of raising funds for the tourism sector that has been established in Manchester and Liverpool.

Local accommodation providers, including hotels and short-stay serviced apartments, would vote on whether to set up the ABID, which would require them to pay a small nightly levy per room.

A London-wide 'tourist tax' is also being considered by City Hall and is supported by some London boroughs, which would also introduce a £2 per night levy.

It's unclear if Richmond's proposal would operate independently just in the borough or aim to link up with those London-wide plans if they came to fruition.

A report by council officers said the authority wanted to convert more day visits into overnight stays, spread demand across Richmond and generate more spending in town centres.

The borough contains many tourist attractions, including Kew Gardens, Hampton Court Palace and Twickenham's Allianz Stadium.

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Between 2023 and 2024, some 2.45 million visitors attended Kew Gardens (credit: Cesar Medina).

Officers have estimated that an overnight levy of £2 per room would bring in roughly £600,000 extra per year. This figure could increase by up to £90,000 if visitor attractions were also charged.

The report described how this cash would be a "transformative increase in the resources available to support the sector and the borough as a destination".

It added: "Like their town centre equivalents, ABIDs are business-led initiatives where accommodation providers within a defined area collectively invest in projects and services that enhance the overall visitor experience, benefitting their businesses through increased overnight stays.

"This is funded through a modest, supplementary charge per room/unit per night for qualifying businesses."

The council's Finance Committee agreed to work with businesses to put together proposals for a new ABID on 25 September.

The authority will then decide whether to proceed to a ballot, where the majority of businesses would have to vote in favour to formally set up the ABID.

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