Mayor David Skaith has welcomed a report which says up to £26 million could be generated to support infrastructure and grow the tourism economy across York and North Yorkshire through a proposed £1 overnight visitor levy.
The newly published report from York and North Yorkshire's Policy Lab outlines the potential for the flat fee, which includes a recommendation for a simple low-cost digital platform to collect the levy. Potential exemptions for low-cost stays could also be included in a bid to reduce the burden on small operators and campsites.
The review, commissioned by Mayor David Skaith, examines the region's visitor economy alongside both the risks and opportunities of introducing the charge.
Mayor David Skaith explained the purpose of the review:
"The purpose of the report was really to get a warts-and-all review of what a levy would look like in York and North Yorkshire.
We didn't just want to find out what the good parts would be, we wanted to find out what the impacts would be, negatively potentially as well.
We wanted to have an independent report done to really speak to the hospitality sector, to the wider businesses who will be impacted by the levy, and get their views and feelings from it as well.
Really, fundamentally what the positives are from what a levy could do in terms of the investment coming into the region to grow the sector, to grow the visitor economy, to attract more people into the region, and then to really drive that investment because we know our visitor economy is really strong, it's really powerful, it's really key for our region. But it does put a lot of strain on local resources and on the two local authorities in terms of the impact it has as well. So that needs to be paid for, so we need the funding to be able to support the local authorities and our towns and our places, but also funding to grow the visitor economy to make it even stronger than what it already is."
Modest levies in destinations with high appeal, such as Edinburgh, Manchester, Paris, and Barcelona, have not deterred visitors, according to the report's findings.
Mayor David Skaith highlighted the extensive engagement involved in the research:
"It was a really positive piece of work, a really thorough piece of work. It's been going on for a long period of time. There's been a huge amount of engagement in it. I've done a lot of engagement with the hospitality sector as well, outside of the report, to really get their understanding and thoughts from it as well.
The the key find really was to keep it as simple as possible and the real opportunities around what a levy could bring in, and that's obviously the wider piece of work now, which we'd love to continue to have those conversations with the tourism sector, with the visitor economy, to see actually what the opportunities are around and where the money could be best spent to actually really grow the economy and what the sector needs."
Millions of people visit the region every year, which puts pressure on the services and infrastructure that residents rely on.
Mayor David Skaith said:
"York and North Yorkshire has something for everyone. Millions visit every year, and that’s why a visitor levy could be a total game changer for us. Thriving communities and thriving destinations go hand in hand, but welcoming so many visitors puts pressure on the infrastructure and services our residents rely on. We must get this right for our county so we can invest in our communities, and our hospitality and tourism businesses. That's why I'm committed to keep talking with the sector as the details come together."
The evidence-based approach is designed to inform future conversations rather than make a definitive case for or against the charge.
Professor Brendan Paddison, Dean of York Business School at York St John University and academic lead for the Policy Lab, said:
"Good policy starts with good evidence. This report is not about making the case for or against a visitor levy, it is about giving the Mayor, businesses and communities the evidence they need to have an informed conversation about what could work for York and North Yorkshire.
Our findings suggest that a visitor levy is a viable option worth exploring further, but the detail matters. Any future levy would need to be simple and proportionate, underpinned by transparent governance and meaningful engagement with businesses and communities. Crucially, there must also be a clear commitment that any revenue raised is invested back into the places and visitor economy that generate it, with benefits that are visible to businesses, visitors and communities across York and North Yorkshire."
Results from a national consultation into visitor levies are expected in the coming weeks. Powers to implement these charges are set to be handed to Combined Authorities later this year under the English Devolution and Community Empowerment Bill.
Mayor David Skaith said officials want to be prepared for the upcoming national legislation:
"We wanted to have this done so we were ready for when the government announced their report, which is coming very soon.
So obviously, you know, we're still waiting on what the government are going to be saying in terms of if there's any caveats, if there's any limitations on on how it's going to be collected or what the money can be used for. But we set our store out to say, this is the work we've done. We've already done this groundwork. We want to be in a really good position that if we can implement the levy, we can implement it as quickly as possible.
Now it's looking after the the wider recommendations in the report such as actually bringing organizations together to actually understand how and where the best place the money will be used for. So we want to get that those people together to actually say, okay, if this levy comes in, this kind of money is what we could be looking at, what does the sector need? How do we drive the investment into the region to make sure it works for everyone? And that is the key. Make sure this works with everyone and doing it with people, not to them."
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