An update on proposals to introduce a Tourism Levy in the Isle of Man will be laid before this month’s Tynwald sitting.

Visit Isle of Man believes the scheme may represent a significant opportunity for the island - with funds raised used to protect heritage attractions, develop culture and art schemes and maintain the coastal footpath.

But businesses in the hospitality sector have warned they are already struggling and the new tax could lead to some closing down.

Welbeck Hotel general manager Lucy George accused the Manx government of being ‘out of touch and tone deaf’ to the industry’s problems.

She posted on Facebook: ‘If we are to see a Tourist Tax on the Isle of Man - which I think is an absolutely insane idea - I don’t want to hear that government are shocked that businesses are closing, specifically hospitality businesses like ours.

‘[We] have been here for almost 50 years as a family. We’re already struggling and it’s no secret it’s hard to fill the hotels - even during summer.

‘The Isle of Man is a wonderful place to live and visit - but it already costs a fortune to get here.’

Visit Isle of Man in its update says it believes the levy need not be a ‘tourism tax’, but rather a partnership between stakeholders, islanders, and visitors.

Any levy introduced in the Isle of Man should be a ‘collaborative, not punitive’, it recommends.

Tynwald voted in July last year for the Department for Enterprise to investigate a Tourism Levy pilot, with funds raised being used for developing, supporting or promoting the visitor economy and the island as a visitor destination.

Following that motion, Visit Isle of Man organised workshops and carried out an online survey to gather industry feedback.

It acknowledged the sector’s concerns around the potential impact on competitiveness, any administrative burden and a clear message that the benefits should be proportionate.

Visit Isle of Man has not so far carried out a pilot, but its report cites an Island Escapes scheme where a £3 voluntary donation per booking since 2018 has raised £25,000 for Manx Wildlife Trust and £5,000 for Culture Vannin.

It also carried out research into the operation of levies in other jurisdictions including, curiously, destinations such as Amsterdam and the Balearic Islands which have introduced a tourism tax as a way of tackling over-tourism - a situation certainly not faced in the Isle of Man.

The report, produced by Visit Isle of Man CEO Deborah Heather, says that globally the best examples of tourism levies provide invaluable resources through which to grow or manage tourism.

It adds: ‘In the case of the Isle of Man funds raised could be focused on driving visitor economy growth.

‘Additional funds generated through any levy could also be used to improve the product, for example, protecting and developing heritage railways and national heritage sites, developing cultural and art initiatives or funding the upkeep of the Raad ny Foillan coastal path.

‘A Tourism Levy may represent a significant opportunity for the island from both a social and economic perspective.’