East Riding Councillors Push Back Against Proposed Tourism Tax Over Fears For Coastal Businesses

Local politicians are urging the regional combined authority mayor to abandon plans for an overnight visitor levy, warning it could severely damage the East Riding's fragile hospitality sector and undermine upcoming cultural bids.

Concerns are mounting across the East Riding over the potential introduction of a tourism tax, with local representatives warning that such a levy could leave the region at a significant competitive disadvantage.

Government proposals that would grant regional mayors the authority to implement an overnight accommodation charge are facing stiff resistance from politicians who fear the move could devastate coastal businesses.

East Riding Councillors passed a motion last month rejecting the concept of a visitor levy, the motion demands that the local authority writes directly to the Combined Authority Mayor to formally oppose any additional financial burdens on the hospitality trade.

Bridlington Councillor Mike Heslop-Mullens says not introducing an overnight visitor levy could give the area a competitive advantage over neighbouring counties.

"East Yorkshire and Hull is not a prime holiday destination. The levy would make our region less competitive in gaining tourist spending.

If neighbouring mayoral authorities introduce a levy, we would have the opportunity to position ourselves positively.

No tourism tax in the East Riding. This could attract visitors who may otherwise choose destinations such as North Yorkshire and the Dales."

Councillor Denis Healy has also strongly criticised the idea of a visitor levy, arguing that penalising holidaymakers financially is in direct opposition to the area's goal of attracting new visitors and showcasing its cultural offerings.

Councillor Healy says the nature of the region's tourist economy doesn't lend itself to a levy.

"Tourism here isn't like tourism in other cities like, you know, places like Cambridge, York, Stratford-upon-Avon. These cities have established visitor demand. There's an extra charge and it would barely affect footfall.

But here in the East Riding our visitor economy is more fragile, right? It's more seasonal. And it is more heavily dependent upon independent businesses.

So a levy here would not skim cream off a booming sector, which is what it would do in other places, it would depress the very activity that we're trying to stimulate."

Local leaders have pointed out that the region's tourism industry is heavily reliant on independent traders and operates on a highly seasonal basis, making it far more vulnerable than established global destinations.

Councillor Eliza Whitaker has suggested that even a seemingly modest overnight fee could tip the balance for families currently struggling with the cost of living. She cautioned that adding extra expenses could make the East Riding slightly less appealing than alternative holiday spots during a period of ongoing economic uncertainty.

The practicalities of enforcing the proposed tax have also drawn criticism. Bridlington Councillor Andy Walker has highlighted the anxiety among coastal businesses, including the Bridlington Tourism Association, regarding the administrative workload involved in collecting the charge and explaining it to guests.

He noted that the hospitality sector is already grappling with rising costs, including recent increases in national insurance contributions and business rates, and warned that a new tax could severely strain the relationship and goodwill between local enterprises and the authority.

Reform councillor Denise Howard has echoed these sentiments, pointing out a distinct lack of local data to support the policy. She argued that current assumptions are based on models from areas with entirely different economic landscapes, and expressed fears that a levy would inevitably lead to reduced visitor spending and job losses.

Questions remain regarding how the tax would be structured, with Councillor Nick Coultish asking whether it would be a flat rate or a percentage, and whether small independent guest houses would be exempt while applying it to corporate hotel chains. He also raised concerns about where the generated revenue would be directed, questioning whether it would be ring-fenced for the visitor economy or diverted into other municipal budgets such as public transport infrastructure.

As the debate intensifies, councillors are calling for more time and clearer information from the government, insisting that the East Riding must remain an inviting and competitive destination without imposing financial barriers on its guests.