Dear Member,
As we move towards the Wight BID 3 ballot in October, we wanted to share more information about an important change being proposed to the way the BID levy is calculated.
Wight BID 3 is proposing a new stepped levy, designed to create a fairer and more sustainable funding model for the Island’s visitor economy.
The current 1.75% levy has remained largely unchanged for a number of years. During that time, businesses have faced significant increases in operating costs, while the cost of delivering destination marketing, business support and other BID activity has also risen.
The proposed stepped approach recognises that businesses differ significantly in size, sector and rateable value, rather than applying the same percentage across all eligible businesses.
It is built around three key principles:
Fairness – contributions that better reflect the size and potential benefit to different businesses.
Sufficiency – generating the additional investment needed to promote the Island, attract visitors and compete with other destinations.
Sustainability – protecting smaller businesses while creating a stronger financial foundation for the BID over the next five years.
The proposed levy rates would vary by sector, with Food & Drink remaining frozen at 1.75%, while other sectors would have different rates reflecting their size, structure and relationship with the visitor economy.
The proposed rates are:
- Transport (ferries & other): 6%
- Car Parks: 6%
- Attractions: 5%
- Marinas: 2.25%
- All Accommodation: 2.25%
- Entertainment & Leisure: 2%
- Food & Drink: 1.75% (frozen)
We recognise that any change to the levy is important to businesses, particularly at a time when many are facing continued financial pressures. The intention of the new model is to create a more balanced approach while ensuring Visit Isle of Wight has the resources needed to invest in the Island’s future.
Hear more from CEO Dominic Wray in this short video, where he explains the thinking behind the proposed new approach and what it means for businesses.
The full Wight BID 3 Business Plan will be published in the coming week, setting out the proposed investment programme, levy structure and ambitions for the Island’s visitor economy.
The Notice of Ballot is expected in mid-September, with the ballot taking place in October.
We encourage all eligible businesses to take the time to read the Business Plan when it is published and consider the proposals ahead of the ballot.
Best wishes,
Dominic Wray
Interim CEO, Visit Isle of Wight