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Chamber responds to proposed Biosphere/tourism levy

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20 August 2025

Tynwald has passed a motion to explore the introduction of a Biosphere or tourism levy on overnight visitors. The motion, supported by several ministers, aims to align with the Island’s UNESCO Biosphere status and create sustainable funding for environmental protection and tourism infrastructure.

Isle of Man Chamber of Commerce 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’s essential that any additional costs to tourists are brought in at a level that doesn’t harm the visitor economy. With this context in mind, while we recognise the potential benefits of the proposal – particularly if it helps deliver real, visible improvements for residents and visitors alike – our members also have some concerns.

Key risks and concerns:

  • 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.

We also note that recent public statements have suggested that accommodation on the Island is fully booked throughout the season. However, published occupancy data indicates a more varied picture, with demand fluctuating across the year. This highlights the need for any policy decision – especially one linked to pricing – to be based on accurate, comprehensive data.

Opportunities and potential benefits:

  • 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.

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.

We are committed to working constructively with Government to ensure that any future proposal is practical, fair, and sector-sensitive. A full, open consultation will be vital to ensuring the levy, if pursued, is shaped by those working on the ground.