A Labour candidate for the 2024 mayor position has proposed a levy in order to kickstart a new era in the North East.
Kim McGuinness is running against former North East MEP Paul Brannen for the position after current North of Tyne mayor Jamie Driscoll was controversially omitted.
A £1.4bn devolution deal was announced in December 2022 and will see a new mayor appointed by May 2024.
Mrs McGuinness, who has been the police and crime commissioner for Northumbria since 2019, hopes to invest in culture, events and visitor attractions if she is successfully elected.
One way of funding these improvements in the North East would be to introduce a £1-a-night levy charge for hotel guests by working with businesses, in the hope that it would help to improve the cultural sector and boost income for businesses and residents alike.
The North East received around 90 million visitors per year before Covid but the region still receives the lowest number of domestic and international visitors and the smallest spend of any region in England – a figure McGuinness has vowed to change with the proceeds of the tourist levy.
She said: "The people in the North East are incredibly proud of all we have to offer, from arts to music to sport and more. Our cultural heritage defines us. Now it’s time to grow that.
"If we introduce a small tourist levy on hotel stays like they have in other European regions, we can fund a series of major visitor events that will create jobs and put our region back on the national stage.
"We only have to look at the positive economic impact of Sam Fender and Pink concerts in June which brought in more than £15m to the local economy. Our region can benefit from more of that impact."
The levy was first implemented in the UK in Manchester earlier this year, and is usually operated on a per-night, per-room basis.
McGuinness said she will first work with business and business improvement districts as mayor to introduce a voluntary scheme supported by the Combined Authority.
But for bigger success, she believes the overnight levy will need to be put on a statutory basis overseen by the mayor and council leaders at a regional level. Such a move would need new Government legislation.
The police and crime commissioner said: "I want the North East to be known as the home of real opportunity, where we tackle hardship and the unfair effects of austerity head-on.
"Arts and culture, sports and music, we’ve seen time and again these areas be a path to success and if we invest in culture and arts we can inspire a new generation.
"But not everyone gets the chance to succeed. We need to invest in young people and neighbourhood services in our hardest-hit areas to make sure everyone has that opportunity.
"And we need to create more well-paid, secure local jobs now so parents have the financial security to support children who might go on to be the musicians or sports stars of tomorrow.
"My plan for the North East brings together all these elements in a way that finally delivers the benefits of devolution to all our region."
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