Coastal Businesses Face Potential Impact As Preparations Begin For Tourism Tax

Preparations are under way to manage the potential economic fallout for coastal businesses if a proposed overnight visitor levy is introduced in North Yorkshire.

Preparations are under way to manage the potential economic fallout for coastal businesses if a proposed overnight visitor levy is introduced in North Yorkshire.

Fresh concerns have been raised about the economic impacts of a potential tourism tax on the local hospitality industry. Bosses at North Yorkshire Council have warned that problems could arise from the possible introduction of an overnight visitor levy, with businesses on the coast particularly vulnerable to any negative effects.

A modest levy on the region's 41 million annual visitors could raise £50 million to turbocharge investment, according to David Skaith, the elected mayor of York and North Yorkshire. However, hoteliers have expressed deep concern about the potential impact on their businesses.

Hotel occupancy in the county is currently down a few points on last year, although a report presented at a council meeting on Tuesday, August 18, found that it had remained stable. Council officers highlighted cost of living pressures on households and an early Easter holiday with poor weather as potential reasons that may have deterred people from travelling.

The hotel revenue and occupancy data was raised at the meeting by Conservative councillor David Staveley. He highlighted the cost of living impact felt across the economy, as well as the potential impacts of a possible tourism tax, and queried whether any mapping had been done regarding a decline in visitor numbers.

Executive member for open to business, Councillor Mark Crane, confirmed that North Yorkshire Council is already making preparations and working on an updated suite of measures for tourism which he believed councillors would find helpful.

Councillor Mark Crane said:

"I think this council's been fairly clear that we think it could be a problem for North Yorkshire and particularly businesses on the coast.

Looks like now we have a new prime minister is ever more likely there will be a tourism tax coming in. And if that is going to be the case, then we would want to work with the mayor to see where that money is spent, to best help the tourism industry.

We are hoping that it doesn't make a big impact on tourism in the council."

Despite the concerns, there are positive signs for the local visitor economy, and efforts are ongoing to mitigate any adverse effects of a new levy.

Councillor Mark Crane added:

"This year we have seen improvements in some places in the number of visitors. So we will continue to monitor that, and we are doing a piece of work in the background about whether or not, if visitor numbers fall, what we might do to alleviate that and to encourage more people to come to North Yorkshire and indeed, people to stay in North Yorkshire for their holiday.

So, it's a moving picture at the moment, but work is being done on it and we are very aware of the potential problems."

During the meeting, Councillor Crane also noted that the region has received visits from national bodies who have been impressed by the council's ongoing work, leading to an increase in visitors to the county.

He said:

"Let’s hope that continues even if the mayor decided to start charging them more."

In addition to trying to increase the overall number of visitors, the council is working towards encouraging tourists to stay for longer periods of time.

Mayor Skaith has emphasised his commitment to collaborating with the industry on any future charges.

Mayor David Skaith said he intends to:

"work with local authorities, businesses, and the tourism sector as a whole, to really bring them all on the journey together and actually work out what we want to see from such a levy, how it’d work, how it’d be collected".