Yorkshire Coast Awaits Next Steps as National Visitor Levy Consultation Concludes

As a 12-week national government consultation on the proposed "Overnight Visitor Levy" reaches its conclusion, the future of the Yorkshire Coast's tourism landscape hangs in the balance.

The proposal, which would grant regional mayors the power to introduce a modest charge on overnight stays, has sparked a vigorous debate between those seeking a "game-changing" investment and those fearing for a sector already under immense economic strain.

The Mayor’s Vision for Investment

David Skaith, the Mayor of York and North Yorkshire, has been a vocal proponent of the levy, describing it as a "total game changer" and a "turbocharge" for the region. Over the past month, the Mayor has met with more than 100 hospitality and tourism business owners, including those in Scarborough, to discuss research suggesting a £2 per person, per night charge could generate up to £52 million annually.

Mayor Skaith emphasised his focus on residents and local services that "feel the most pressure" from millions of annual visitors. He stated that the levy represents an "opportunity to drive investment into our communities" and support the hospitality sector with funding that is currently unavailable. "Everything is on the table, no decisions have been made at all yet," Mayor Skaith told the Local Democracy Reporting Service, adding that the revenue could "not only drive investment into the sector itself, but also to support our communities who often feel like that the impact of tourism can sometimes be a negative".

Alison Hume Calls for Extreme Caution

The MP for Scarborough and Whitby, Alison Hume, has voiced her perspective on the proposal, balancing the potential for infrastructure investment against the specific needs of coastal towns. Highlighting the differences between urban centres and coastal villages, she stressed that any funds raised on the coast must remain there.

"If we go on holiday abroad, we get hit with the tourism levies and it's quite a useful way of investing in the infrastructure.

What worries me about the coast is obviously we're not a city, towns and villages. Very different to the situation in say York.

I've already made it really clear that we've got to be very careful with this tourism levy. I'm not against it in principle, but the mayor, if he applies it, has to really convince me that the money money will be used to improve infrastructure in Scarborough Whitby and the villages because obviously we are the jewels in the tourism crown and I want money that's raised here to be spent here".

Ms Hume also noted that the implementation of such a levy could provide a secondary benefit regarding the regulation of the local housing market. She further stated:

"In a way, I want it to happen because it will mean that the short-term lets will have to be registered because otherwise, how do they get hit with the tourism levy? So, there could be a lot that comes out in the wash. So, not against it in principle, but I'd need really need to see the detail of it".

Coastal Representatives Demand Safeguards

Local leaders along the coast have expressed deep-seated concerns regarding the economic impact on businesses. In Scarborough, town councillors have sounded a note of caution, with some demanding legal "ring-fencing" to ensure that funds raised locally stay within the community. Town Councillor Sarah Mason highlighted the "perfect storm" of rising costs facing accommodation providers, including higher national insurance and business rates. She argued that "without legal ring fencing and local control, we risk raising money here only to see it spent elsewhere".

This sentiment was echoed by Councillor Rich Maw, who suggested that destinations like Scarborough would likely bring in the "lion's share" of the revenue, which must be reflected in how the funds are distributed. Meanwhile, in Whitby, the conversation is similarly divided. Councillor Neil Swannick cautiously welcomed the proposal, provided the money is spent on "other things than tourism," such as transport infrastructure. However, fellow Whitby representative Phil Trumper expressed opposition, stating, "I do have concerns that it will be spent in [other areas] where the money is being collected. I think it'll be spent in York".

Perspectives from Filey, Pickering, and the East Riding

The debate extends further along the coast and inland. Kevin Hollinrake, the MP for Filey and Pickering, has hit out at the plans, according to the sources, arguing they will "hit the tourism industry" and the "rural economy" at a time when many families are struggling with the cost of living.

In the East Riding, covering towns like Bridlington, Hornsea, and Driffield, Mayor Luke Campbell has adopted a more tentative approach. Suggesting a mandatory levy might not be appropriate for a region where businesses are already struggling, he has tasked officers with assessing whether a "voluntary contribution" might be a more suitable alternative for those communities.

Next Steps for the Region

The potential levy, which could apply to hotels, bed and breakfasts, and short-term lets, remains a proposal at this stage. A North Yorkshire Council survey revealed that 71 per cent of 277 respondents were opposed to the idea, citing fears of declining visitor numbers and the administrative burden on small businesses.

If the government gives the "green light" following the national consultation, Mayor David Skaith has promised to hold a further region-wide consultation before any levy is formally introduced. He said:

“York and North Yorkshire is beautiful, with something for everyone. That’s why millions of people come spend time here every year, it’s a success story for our region, with over 54,000 jobs, but it also adds a lot of pressure to local services. 

“I’m focussed on the people who live and work here and who feel the impact of millions of visitors. I’ll make sure that we prioritise the places and public services that feel the most pressure, without costing residents an extra penny. 

“A visitor levy could 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 we need, but nobody has the money for right now. We must get this right for our region and that’s what I’m focussed on as we go through this process.” 

Mayor David Skaith says he will continue to meet with the region’s tourism and hospitality groups as he develops plans for an overnight visitor levy over the coming months. 

The consultation which closes on Wednesday 18th February can be found at https://www.gov.uk/government/consultations/overnight-visitor-levy-in-england

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