East Riding Councillors Voice Concerns Over Proposed Tourism Tax

Two senior politicians in the East Riding have warned that a potential visitor levy could harm the local hospitality sector and are demanding more clarity from the government before any decisions are made.

The possibility of introducing a tourism tax across the region has sparked significant debate, with local representatives expressing deep reservations about the potential impact on the local hospitality sector.

Two senior East Riding councillors have publicly shared their apprehensions regarding the proposed visitor levy, highlighting a severe lack of concrete data and warning of potential job losses in an already strained industry.

The proposed levy, which would theoretically see overnight visitors charged an additional fee, has raised questions about how such a scheme would be implemented locally and whether it would ultimately deter tourists from visiting the area.

Reform councillor Denise Howard highlighted that current assumptions rely heavily on models from other regions rather than hard local facts. They pointed out that while a tax might work in a major global destination like the capital, the dynamics for Hull and the East Riding are vastly different.

They expressed concern that introducing extra costs for holidaymakers could lead to a decline in footfall and spending, ultimately harming the livelihoods of those working in the local visitor economy.

Councillor Howard said:

"Like most people, the mayor [Luke Campbell] thinks we're already being taxed enough, and he's right. He also wants to hear what businesses have to say. The problem of course is that we've got no evidence-based data to make a decision. All we have is modelling commissioned by Hospitality UK on areas with similar features to our own. That suggests and I personally believe that this would turn out to be the case, that a tourism levy would lead to a reduction in visitor numbers, a reduction in visitor spend and ultimately a loss of jobs in a sector that's already under massive pressure. We're not London, a levy on the amount of visitors there could constructively be used to support the tourism industry. But at this point, my personal view and the view of this group is that for Hull and the East Riding, the risks would outweigh the benefits."

The mechanics of how a potential tax would be collected and distributed remain a major point of contention among local leaders.

There are widespread questions regarding whether the charge would be a fixed amount per night or a percentage of the accommodation cost. Furthermore, there is uncertainty over whether local authorities would have the power to protect smaller, independent guest houses from the charge while applying it to larger, corporate hotel chains.

Another prominent issue is the destination of the generated revenue. Politicians are keen to know if the funds would be strictly reserved to boost the local tourism economy through marketing and grants, or if the money might be diverted to other municipal budgets, such as public transport infrastructure.

Councillor Nick Coultish said:

"Will it be a flat fee? will it be a percentage? will the mayor have the powers to exempt certain businesses, small B&Bs, will it have the power to to impose this on, you know, large businesses only like your Hiltons, your Premier Inns of this world? We don't know anything yet. We don't know whether it'll be ring fenced for for the local visitor economy we don't know if they'll be able to set up a grant system for small businesses to take part or whether it'll be siphoned up into transport and whether that will be good. We don't know whether it will encourage more visitors because we're able to invest in marketing we don't know whether visitors will be put off. I think what we're asking for is more time and more information from the government."

As the conversation continues, local leaders are urging central government officials to provide clearer guidelines and more comprehensive data before any further steps are taken toward implementing a visitor tax in the area.