Proposed Visitor Levy Won't Cause Unemployment, Mayor Says

A proposed overnight visitor levy could fund vital coastal regeneration projects and transport improvements across Scarborough, Whitby, and Filey, despite concerns it could burden hospitality businesses.

Vital regeneration projects and transport networks across the Yorkshire Coast could receive a major funding boost through a proposed overnight visitor levy.

York and North Yorkshire Mayor David Skaith believes the scheme will unlock significant investment for towns including Scarborough, Whitby, and Filey, providing money that has been unavailable for years.

The government recently published its response to a national consultation on the levy, paving the way for regional mayors to introduce the charge.

York and North Yorkshire Mayor David Skaith explained the background to the proposals:

"In the last couple of weeks that government have published its response to the national consultation on the overnight visitor levy. In summary, they will pass legislation to enable mayors to implement an overnight visitor levy in their area. It will be done as a percentage of the accommodation cost, not a flat fee, which I personally feel it is a much fairer way of doing it.

All Labour mayors have subsequently committed they will set out the rate between 0 and 5% and won't go above 5%.

Following the initial announcement, I've already engaged with hundreds of businesses and from the hospitality sector as well, and we now have greater clarity of what the parameters are, and we're still waiting on national legislation to see what what government set out as well. But I'm keen to carry on those conversations with the sector across the region."

The funds raised would be directed towards extending the tourist season, addressing workforce shortages, and improving local infrastructure.

David Skaith outlined his vision for the revenue:

"What we'd like to do is to support the sector and to grow it and to elongate the season. We'd also like to invest in more skills in the sector because we speak to many hospitality businesses in particular, who say they're struggling to find skilled workforce, so we can invest in further skills.

But what we can also do is invest in place and actually to make our regions a more attractive place as well, to come and actually visit the region and to promote places like Scarborough, Whitby and the such.

Our high streets across the patch, particularly our coastal areas, need investment to keep them as beautiful as they are, and that costs a lot of money, that costs a lot of money to to local authorities.

Plus, what we'd love to do is invest more into our public transport, because again for our people who live here all year around, we want to improve the bus network and our transport network, so people can move around more sustainably. But also, when our visitors come into the region, they can move around the region more sustainably as well using better public transport."

However, the proposal has faced criticism from some local representatives who fear the financial impact on the hospitality sector will be too severe.

Whitby Councillor Phil Trumper warned about the potential consequences for businesses:

"A lot of people from the hospitality industry have been in touch with me. They are already overburdened with the national insurance and the other the taxes that have been imposed on them in the last few years.

Some businesses now are closing over the winter period because of the extra burden on them from taxes introduced over the last couple of years and the levy is going to make that even harsher on them.

I think we just need to stop this happening because it is going to overburden businesses. And it will create unemployment in towns like Whitby."

The Mayor rejected these claims, arguing that without a new revenue stream, long-awaited improvements simply cannot happen.

David Skaith responded directly to the concerns over unemployment:

"I don't agree. I think we have an opportunity to actually invest in our place and actually really improve it and not just for the visitor economy but for our people who live all year round.

We all want to see improved transport. We all want to see regened high streets and all these kind of things. That does cost money.

We want to see Whitley Cliff lift, we want to see all these projects being supported. I do as much as anyone else does, but it costs money and it hasn't been there for a number of years."

He added that the levy offers a practical solution to funding shortfalls for much-needed local assets.

David Skaith said:

"Many residents will sit in the area, saying we want to see investment in things like the Whitby Cliff lift. We want to see improved transport. We want to see our high streets regenerated. We want to see these projects. Absolutely, I do too. But it costs money. And I haven't seen the local authority, North Yorkshire local authority coming forward with that money to do this work.

So we've got an opportunity to collect a very small amount of money per night to have a large amount of money that we can put into these and invest in place like Scarborough, Whitby and Filey."

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