Scarborough Tourism Board Urges Mayor to Scrap Proposed Tourist Tax

The Scarborough Tourism Board has published an open letter opposing a proposed Overnight Visitor Levy, warning it would damage the local economy and push holidaymakers towards cheaper neighbouring towns like Bridlington.

The Scarborough Tourism Board has issued an open letter to the Mayor of York and North Yorkshire, expressing unequivocal opposition to a proposed tourist tax.

The board, supported by the Scarborough Business Partnership, warned that introducing an Overnight Visitor Levy would be economically damaging and strategically flawed, placing the town at a significant competitive disadvantage.

David Skaith, the Labour Mayor for York and North Yorkshire, recently welcomed proposed legislation that would grant regional mayors the power to add a nightly fee to accommodation bills. Estimating that a two-pound charge could raise up to £52.2 million a year for the region, he described the powers as a total game-changer.

Mr 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."

However, the Scarborough Tourism Board argued that the tax would deter visitors and divert tourism spending to neighbouring destinations.

The board pointed out that Bridlington, located less than twenty miles away and competing for the same family holiday market, is not proposing to introduce a tourist tax, as the East Riding of Yorkshire Council has not indicated any intention to pursue such a levy.

The board stated:

"A family comparing accommodation options online will see an additional charge attached to staying in Scarborough but not to staying in Bridlington. The result is obvious. Some visitors will choose the cheaper alternative. In a sector where occupancy levels, average room rates and visitor spend are already under pressure, even small pricing differences can influence booking decisions."

Tens of thousands of jobs across accommodation, hospitality, retail, entertainment, and transport depend directly or indirectly on visitors choosing Scarborough as their destination.

The board highlighted that Scarborough has long been regarded as one of Britain's most accessible and affordable seaside destinations, serving families who save throughout the year for a traditional holiday. They described the levy as a regressive tax that would disproportionately impact those with the least ability to pay.

The board noted:

"The consequence is that those most likely to reconsider or cancel trips are not affluent travelers but ordinary working families – the very visitors who have formed the backbone of Scarborough's tourism economy for generations."

Tourism businesses across North Yorkshire are already under severe pressure from escalating energy costs, increased National Living Wage obligations, and inflationary supply chain costs. Evidence of this strain is visible in Scarborough, where several established venues, including the Palm Court Hotel and the Park Manor Hotel, have recently been placed on the market.

The tourism board also dismissed comparisons with European tourist taxes, pointing out that hospitality businesses in the United Kingdom face a standard VAT rate of twenty per cent. This contrasts sharply with reduced rates of ten per cent in France, Spain, and Italy, and seven per cent in Germany.

The board added:

"The suggestion that visitors and tourism businesses are somehow not paying their fair share simply does not stand up to scrutiny."

The sector already contributes significantly through various taxes, business rates, and licensing fees, while North Yorkshire Council has also introduced a one hundred per cent council tax premium on many second homes and holiday properties.

The letter also referenced independent analysis by Oxford Economics for UKHospitality, which highlighted the potentially severe consequences a tourism levy could have on visitor numbers, spending, and economic growth.

The Scarborough Tourism Board urged the combined authority to reject the proposal and focus instead on policies that support growth and investment.

The board concluded:

"Scarborough's tourism industry has faced enough challenges in recent years. It should not now be asked to carry the burden of a new tax that risks damaging the very businesses and jobs upon which our local economy depends."

Here is their letter in full:

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