'A tourist tax would put off visitors'

The owners of hospitality businesses that depend on visitors have voiced their concerns about a proposed "tourist tax" in North Yorkshire.

The region's mayor, David Skaith, has long called for a levy on overnight stays, saying it would be a "game changer" and could bring in millions of pounds in revenue.

A national government consultation on the new mayoral power to impose visitor levies is due to end this week.

But North Yorkshire Council said 71% of more than 200 businesses it surveyed were opposed to the idea and feared tourism could decline.

Rebecca Layton owns Galtres Lodge, a small independent hotel in the centre of York, and is "dead against" the proposals.

She said: "This has been floated in York for several years and we have yet to be convinced this would be a good thing for anybody."

The hotelier has concerns that the tax may not be limited to £1 per night and would only be imposed on the 20% of visitors who stay in the region overnight.

"So we're not taxing tourists, we're taxing hotels," she said.

"When you think of it from a hotel's perspective, people who come and stay at a hotel compared to daytrippers use the hotel's car parks, use the hotel's bins, use the hotel's toilets.

"They aren't putting the strain on town and city resources to the same extent as daytrippers, yet they're the ones being penalised."

Layton added that with 20% VAT rates on hospitality in the UK, compared to lower rates in Europe, a tourism tax added on top could be devastating.

"You're suddenly making York and North Yorkshire as a destination a less appealing option," she said.

Simon Cotton runs hotels, restaurants and pubs across York and North Yorkshire, including the Fat Badger in Harrogate.

He said he was for the tax in principle and it was "nothing new".

"If you're a seasoned traveller and you've gone around the world, tourism taxes whether locally or regionally have been around for decades, especially in the big cities of the world," he said.

"I think it's a great way to raise money to plough back into tourism locally and improve our offering.

"For the North Yorkshire one, I'm slightly still on the fence in terms of how the money is going to be spent just yet."

Brendan Paddison, who is the chair of the York Tourism Advisory Board, said that in 2024, about 41 million people visited York and North Yorkshire and charging them a levy could generate a substantial amount.

"For some people, that extra pound is quite a significant cost," he said.

"For a holiday over a course of a week, that does add up for some families and therefore might put them off going to a particular place in the region.

"For other tourists, it might not be a problem at all and as we know, if you travel in parts of Europe, paying that pound a night is something that you'd expect."

Paddison said he was "not surprised" that almost three quarters of businesses in North Yorkshire opposed the tax on visitors.

"Lots of tourism businesses and hospitality businesses are really struggling at the moment," he added.

"The rising costs and business rates are significant, so this additional cost is something else they're having to factor into managing their business and trying to survive."

Deputy mayor of York and North Yorkshire Peter Kilbane believes a tourist tax would benefit the region.

He explained York had some of the best heritage assets in the world, which residents were funding the upkeep of through their council tax.

"Bringing in a tourist levy will help pay for that upkeep, which will in turn attract more people," Kilbane said.

He added the revenue would also be spent on sustainable transport to move visitors into the city but it would be subject to consultation with all stakeholders.

North Yorkshire Council had a different view, however, and in a letter to the government, councillor Mark Crane raised concerns.

He explained that "staycationers" made up most of the North Yorkshire visitor trade and a tourism tax could drive up costs for domestic holidays.

"Across the York and North Yorkshire Combined Authority, business sentiment is divided," Crane said in a consultation response letter, which has been approved by the council.

"In York, views appear to be split, reflecting moderate support in an urban context.

"In rural North Yorkshire, opposition is strong and widespread among accommodation providers, who are particularly concerned about price sensitivity in our domestic led market.

"This disparity must be addressed through inclusive decision making that safeguards rural economies and does not allow urban priorities to dominate."

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