The Mayor of York and North Yorkshire has welcomed plans for a new overnight visitor levy, despite ongoing concerns from the hospitality industry that the charges could deter tourists.
The Mayor of York and North Yorkshire has described proposed powers to levy charges on overnight stays as a total game-changer for the region.
David Skaith, the Labour Mayor for York and North Yorkshire, was speaking to businesses at the Crown Hotel in Harrogate following a national announcement regarding the implementation of a visitor levy.
The proposed legislation, often referred to as a tourist tax, was unveiled as part of the King’s Speech on Wednesday, May 13. The Government's legislative agenda includes the tabling of an Overnight Visitor Levy Bill during the coming Parliament.
Under the plans, which follow a national consultation that closed in February, mayors would be given the power to choose whether or not to introduce the charges. The levy would see guests charged a nightly fee on top of their accommodation bill.
Mr Skaith stated that the plans would drive investment into local communities and raise much-needed funds to support tourism and hospitality businesses.
The mayor added that he would continue to press the Government to ensure that decisions about these levies are made at a local level.
Speaking after the plans for legislation were unveiled, David Skaith said:
"A visitor levy would be a total game changer for our region. It’s an opportunity to drive investment into our communities, and back businesses in our tourism and hospitality sectors with the support we all know they need, but nobody has the money for right now."
Backers of the scheme argue that the generated funds could be invested in areas popular with holidaymakers and help manage the pressures associated with mass tourism.
The York and North Yorkshire Combined Authority, alongside York St John University, estimate that a charge of £2 per night could raise up to £52.2 million a year for the region.
City of York Council’s Labour leaders and its Liberal Democrat opposition have previously voiced support for the charges, alongside the mayor, since late 2024.
However, businesses within the hospitality and tourism sectors remain concerned that the additional charges could harm their trade at a time when they are already struggling.
Hotels, attractions, and industry bodies have warned that the charges could put tourists off visiting amid a difficult economic climate, potentially costing jobs.
Rain Newton-Smith, the chief executive of the Confederation of Business and Industry, expressed concern over the effects of the move.
Rain Newton-Smith said:
"Hard-pressed hospitality businesses are calling for local authorities to avoid introducing a tourist tax that could make holidays more expensive for domestic and international visitors."
The Hospitality Association York stated in November that it was disappointed that Mr Skaith had lobbied the Government to acquire these levy powers.
The Hospitality Association York said:
"York has seen a significant reduction in average daily rates across the city year on year, which identifies a highly price conscious overnight customer, meaning that any increase in costs will see a decline in visitors."
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