Chamber Voices Concerns on Tourism Tax

The Isle of Man Chamber of Commerce has voiced its concerns over the potential introduction of a Biosphere or Tourism Levy on overnight visitors.

Chamber of Commerce says it “supports meaningful conversations about long-term investment in the island’s natural assets and visitor experience”.

However, bearing in mind the very tough trading conditions facing the island’s tourism and hospitality businesses, it says that “it’s essential that any additional costs to tourists are brought in at a level that doesn’t harm the visitor economy”.

Chamber Concerns

Chamber noted that its key concerns are:

• Introducing new costs may deter price-sensitive visitors at a time when the sector is still recovering.
• Smaller and seasonal operators may struggle with new collection and reporting requirements.
• Transparency is essential: members want clarity on how funds would be collected, governed, and reinvested.
• Timing matters – many in the industry are already under pressure from rising costs and labour shortages.

Potential Benefits

Chamber also noted the opportunities and potential benefits the tax could bring:

• A well-managed levy could improve the Island’s sustainability credentials and provide long-term investment in trails, heritage, and marketing.
• A dedicated fund, separate from general taxation, may ensure more targeted support for tourism-related initiatives.
• The scheme could follow international best practice, with pilot testing and flexible design to suit local conditions.
• Tourism taxes have proven successful elsewhere when ringfenced and used appropriately – particularly to support marketing and attract more visitors.

Not The Right Time

The Chamber added: “While tourism taxes can be effective when ringfenced and well-managed, particularly to support marketing and attract more visitors, this may not be the right time to introduce such a measure.

“Nonetheless, we welcome the opportunity for the sector to contribute to a consultation and agree that open debate on the issue is important.”

It is committed to working constructively with Government to ensure that any future proposal is practical, fair, and sector-sensitive.

However, it says a “full, open consultation will be vital to ensuring the levy, if pursued, is shaped by those working on the ground”.