Visit Isle of Wight (VIOW) is proposing a new stepped levy as part of Wight BID 3, creating a fairer and more sustainable funding model to support the Island’s visitor economy and to protect smaller businesses while increasing investment in promoting the Island.
The proposal follows the Isle of Wight Council’s decision on 14 August to progress the legal processes required for the ballot, allowing VIOW to move forward with the next stage of the process.
The Wight BID 3 Business Plan will be published at the end of August, with the Notice of Ballot expected in mid-September and the ballot taking place in October.
The proposed stepped levy represents a significant change from the existing funding model, which has remained largely unchanged for a number of years.
During this time, businesses have faced rising costs and very different economic pressures, while the cost of delivering destination marketing, business support and other BID activity has increased.
The new approach is designed to recognise that businesses vary significantly in size, sector and rateable value, rather than applying the same percentage burden across all eligible businesses.
It will also help protect smaller businesses while generating the additional investment needed for the Isle of Wight to compete with other destinations and deliver a more ambitious programme of activity.
The current BID levy is 1.75%. As this has not been adjusted for inflation, the real-terms value of BID income has reduced over time. The equivalent rate today would be approximately 2.42% – and even this would not provide sufficient income to deliver the ambitions of Wight BID 3.
The stepped levy is therefore designed around three principles:
- Fairness – contributions that better reflect the size and potential benefit to different businesses.
- Sufficiency – generating the investment needed to promote the Island and compete effectively as a destination.
- Sustainability – protecting smaller businesses while ensuring the BID has the resources to deliver over the long term.
The proposed BID levy percentage is categorised into the below sectors:
| Transport (ferries & other) | 6% |
| Car Parks | 6% |
| Attractions | 5% |
| Marinas | 2.25% |
| All Accommodation | 2.25% |
| Entertainment & Leisure | 2% |
| Food & Drink (all sub-types) | 1.75% (frozen) |
Dominic Wray, Visit Isle of Wight CEO, said:
“We know businesses are facing significant pressures, and any change to the levy needs to recognise that. The proposed stepped model is about creating a fairer approach while ensuring we have the resources to be ambitious about the future of the Island’s visitor economy.
“The Isle of Wight has enormous potential, but we are competing with destinations across the UK and beyond. We need to be able to invest in promoting the Island, attracting visitors and supporting the businesses that make our visitor economy so important.
“This is a new direction for VIOW and an important opportunity to create a stronger and more sustainable foundation for the next five years.”
The full Wight BID 3 Business Plan will be published at the end of August, setting out the proposed investment programme, levy structure and ambitions for the Island’s visitor economy.
Businesses will then have the opportunity to consider the proposals ahead of the October ballot.
