“A total rip-off stealth tax on hard-working businesses for little or no benefit” – they are the words of one Isle of Wight business who will be voting ‘no’ in the ballot on whether the Destination Business Improvement District (D-BID) should be renewed for another 5 years.
Local businesses have just 2 days left to make their voice heard on whether they want to continue paying the tourism levy imposed on them – or whether they want to see Visit Isle of Wight given the boot as the Island’s Destination Management Organisation (DMO). Ballot papers have been distributed and voting closes on 29th October.
Visit Isle of Wight will be hoping that Island businesses will vote in favour of extending the D-BID for another 5-years, after all it pays their handsome salaries, but there is a growing number who have expressed their disgruntlement at the prospect.
The D-BID works by imposing a forced levy on qualifying businesses, based on their rateable value. If the levy isn’t paid then business owners are summonsed to court, with dozens of businesses ending up before Magistrates in recent years – around 6% of levy payers. The money is used for a range of activities – including employee costs of around £250,000 a year – but in particular marketing the Isle of Wight to potential mainland tourists.
Many say that the levy is unfair as they do not see a benefit, with Visit Isle of Wight’s marketing pushing visitors to the large attractions – who also sit on the board of directors for Visit Isle of Wight. Island Echo has raised concerns with Visit Isle of Wight in the past about how the marketing appears to be West Wight centric, targeting A and B occupational groups (those with the most money) – leaving seaside towns like Ryde, Sandown and Shanklin behind.
One of the main controversies of the original D-BID is that large retail businesses such as supermarkets were excluded from compulsory payments at the 11th hour. According to some, this was over fears retail would vote no and scupper the entire plan.
Questions have been raised by concerned businesses as to why significant amounts of money are being paid to a consultant to drive a ‘yes’ vote, why Council car parks qualify for 40 votes and why money is being spent with mainland companies for things such as the official tourism website.
Analysis of Visit Isle of Wight’s accounts shows the company had administrative expenses of nearly £700,000 in the year ending August 2020, with £922,312 of expenses in 2019. This exceeds the turnover of £613,929 (2020) and £893,082 (2019), but the company ended the year with retained earnings of £130,131 thanks to ‘grant income’. Just 2 years ago the company made a loss of £15,513.
Visit Isle of Wight was previously thrown into disrepute when one of its own employees – and the wife of the former CEO – ended up in court after stealing more than £30,000 from the organisation’s funds, as previously reported by Island Echo.
A Facebook page – NO bid – has been set up by those concerned.
Give it the boot, with the internet, most holiday makers find such places themselves without the aid of a few defaced posters in a windswept staion.
Once Europe opens up fully, then the Islands popularity will wain, as with the massive building, congested roads, rip off prices of food, and the dire weather we often have during the school summer breaks, WHY come here, when Europe who don’t have the state funding which the UK familes gain, will be desperate for our cash, and will cut prices to the bone to attract us, whereas here, just the opposite, prices are hiked to make up for losses in a ONCE only captive audience.
Perhaps we’ll get our Island back then and the DFL’ers can sell their second homes to give our first time buyers a fighting chance again
This Stealth Tax should never have been forced upon businesses in the first place.
WHY do Council Car Parks get ‘individual’ votes?!
The Council don’t pay anything based on THEIR rateable value!!
No-one should be working for Visit Isle of Wight if they are a business owner- OBVIOUS conflict of interest!
Their books should be made public so that ALL expenditure can be scrutinised!
The majority of businesses are more than capable of promoting themselves. Close VVIoW down!
Why does ouncil car parks have any vote,what they do for tourism is put them off due to extortionate parking fees,on top of expensive ferries why come here . How can another brown envelope business impose a mandatory charge on another for own personal gain – seems bullying and intimidating to me. Already we pay business rates and council tax
As a mainlander with family ties, both present and historical with the Island, this is the first I have learned of the D-BID set-up, my first impressions being a thumbs down. From the comments I have seen, it appears that the whole thing is somewhat rigged. So were I to have a vote, then it would be NO!