A proposed tourism tax on overnight stays will ‘hit the rural economy’, the Conservative MP for Filey has said.
Kevin Hollinrake MP has criticised new powers given to mayors to introduce a charge on overnight stays in their regions, stating that a levy would he harmful to the tourism industry.
Mr Hollinrake said:
“This will hit the tourism industry, hit the rural economy and once again shows that Labour have no understanding of the economy in this country.”
David Skaith, the elected Mayor of York and North Yorkshire, has said that the scheme, which is under consultation, could raise £50m a year locally and support investment and growth in the region, including improving transport links to the coast.
The Labour mayor has long campaigned for a visitor tax which he has described as a “game changer” for the region.
Mr Skaith said that he will be “very much about working with the local authorities, working with businesses, working with 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 would work, how it would be collected”.
However, Mr Hollinrake, who is also chairman of the Conservative Party, said he backed the Tees Valley Mayor’s opposition to the scheme.
He told the Local Democracy Reporting Service:
“In areas where we have Conservative mayors like Ben Houchen – who has opposed this and said he will not introduce it – you pay less but get better services as a result.”
Mr Houchen has said he will not be implementing the policy, stating: “Thanks, but no thanks.”
Some councillors in Scarborough and Whitby have said they are “cautiously optimistic” about the proposal.
Speaking at a meeting of the area committee on Friday, Labour councillor Neil Swannick, who represents Whitby Streonshalh, said:
“I think we’re all trying to digest the policy and we need to know where the money’s going to go before we support it, but I am cautiously in favour.
“Collecting the tax will be easy for hotels and not so easy for short-term lets.”
Alison Hume, the Labour MP for Scarborough and Whitby, has said that “local coastal communities absolutely should benefit from a simple tourist tax,” while calling for careful consultation on how a levy would be applied.
The Government has said that any fee would apply to visitors’ overnight trips, and it would be up to mayors and other local leaders to “introduce a modest charge if it’s right for their area”.
Businesses, communities, and other interested parties can provide input on how the measure should work during a 12-week consultation period.
The consultation is available on the gov.uk website and will close on February 18.
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