What is a Business Improvement District (BID)?
A Business Improvement District or (BID) is an arrangement whereby businesses collaborate to decide what additional services (in addition to those already provided by Business Rates) that eligible businesses are prepared to pay for. These additional services are voted upon by eligible businesses (Levy Payers). If the majority of Levy Payers vote yes by both number and rateable value, a BID can be created, aligning to the Business Improvement District (England) Regulations 2004. A BID exists for a maximum of 5 years before it can be renewed and must spend the money collected within the BID area and in accordance with the agreed and voted for additional services. The payment of the annual Levy is mandatory.
There are currently over 300 BID’s in the UK including a number of Tourism BID’s, one of them being the English Riviera Business Improvement District (ERBID). The additional services requested by Torbay’s Tourism & Hospitality eligible businesses was for the need for continued, professionally coordinated Destination Marketing activities to promote the English Riviera as one of the UK’s Premier Resorts. In the wake of massive funding reductions for tourism promotion by Local Authorities across the country no funding for this purpose would have been available and this was the driving force for the proposal for the establishment of the ERBID.
The Isle of Wight, Great Yarmouth, Bournemouth and Yorkshire Coast have also chosen to set up Tourism BIDS (TBIDs), which are in affect a private sector management model to provide secure and sustainable funding for 5 years at a time for additional services valued by their tourism businesses/Levy Payers.
ERBID1
ERBID1 (2017-2021) was launched in January 2017 at the same time as the English Riviera BID (ERBID) Company Ltd. The ERBID Company is managed by a Board of Directors elected from Levy Payers and supported by co-opted directors offering specific skills to support the running of the company. ERBID1 raised nearly £3m over 5 years to invest in professionally coordinated Destination Marketing to promote the English Riviera, the key additional service requested by eligible businesses. The Levy collected annually (via Torbay Council) can only be spent on the marketing projects agreed in the Business Plan.
ERBID2
Following the success of ERBID1 a second ballot was staged in the summer of 2021 resulting in an increased majority vote and ERBID 2 (2022 – 2026) was launched in January 2022. The English Riviera BID Company is now totally focused on delivering the various marketing projects outlined in the ERBID2 Business Plan. ERBID2 represents over 1300 eligible Tourism and Hospitality Businesses operating within the Torbay boundary with a rateable value of £3k+.
Over the 5 year operating period of ERBID2 (2022-2026) a further £3m will be raised to invest in professionally coordinated marketing of the English Riviera, as one of the UK’s premier Resorts.
THE ERBID COMPANY
Launched in January 2017 the English Riviera BID Company is a private sector led, not-for-profit limited company that is governed by a board comprising of ERBID Levy Payers or equivalent voluntary financial contributors. All ERBID Levy Payers and voluntary financial contributors are eligible to apply to become Company Members and stand for election and vote on Company matters at the Annual General Meeting when the Company’s Annual Reports and Accounts are presented. Applications to become Company Members is encouraged, please contact us for more information.
The Board meet monthly to strictly monitor the Company budget, Levy funds and report on progress regarding the delivery of the specific Destination Marketing activities included in the ERBID2 Business Plan. Minutes are taken of every meeting are posted here on the ERBID website.
Seven of the Board positions (over 50% of the Board) are elected. A recent election has taken place to support the delivery of ERBID2 and a new Board will be in place from January 2023 when a new chair is to be elected. Elected and co-opted Board Director positions are unpaid and voluntary.
These positions are supported by the Chief Executive and Council Officer responsible for tourism which are fixed positions on the Board. All Directors are required to sign a Code of Conduct and have the necessary skills and knowledge to successfully drive the operational side of the Company, with co-opted director skills including legal and finance.
In addition to supporting over 1300 Levy Payers the English Riviera BID Company works proactively in partnership with many strategic partners including: Torbay Council, Torbay Development Agency, English Riviera Destination Management Group, English Riviera Global Geopark, Visit Devon, Greater South West Tourism Partnership, VisitEngland and our Local MP’s to share knowledge and maximise resources and impact of the ERBID.
All ERBID Levy Payers and voluntary financial contributors are eligible to apply to become Company Members, stand for election, and vote on Company matters at the Annual General Meeting when the Company’s Annual Reports and Accounts are presented. While all BID-eligible businesses are subject to pay the BID levy, becoming a Company Member is not automatic and must be applied for. Applications to become Company Members is encouraged, please contact us for more information.
ALEX FOLEY, OWNER OF GUARDHOUSE CAFÉ, BERRY HEAD, BRIXHAM
‘’The ERBID Company has a proven track record. Visitors are essential to our local economy and we all need to be investing in Destination Marketing so that our region can compete with our UK and international destinations. No business alone can deliver this – we need an experienced team and a good budget to invest strategically, year after year. I believe absolutely in the need for the continuation of the ERBID.’’