There could be a ‘tourist tax’ imposed on holiday-makers visiting Whitby and the surrounding area under new legislation, which the region’s leaders believe could raise £26m.
A £1 a night visitor levy in York and North Yorkshire has been proposed in a new lab report commissioned by David Skaith, the Mayor of York and North Yorkshire.
The report has looked at the region’s visitor economy, as well as the risks, challenges and opportunities of a visitor levy – which it says will be reinvested back into York and North Yorkshire’s hospitality and tourism industry, while making improvements to infrastructure both tourists and residents rely on.
The Visitor Levy Policy Report also sets out different models, including flat and percentage rates, and makes a series of recommendations for the region.
The Mayor’s office says it has found levies do not deter visitors to destinations which already have a high appeal. Visitor numbers and growth in destinations such as Edinburgh, Manchester, Paris and Barcelona remain steady following implementation of similar schemes, it added.
Potential exemptions for low-cost stays in a bid to reduce the burden on small operators and campsites have been recognised by the report, which suggests the time-scale for a levy being effective is 2027-28.
Mr 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 report comes as results of the national consultation into visitor levies are expected in the coming weeks. Combined Authorities are set to receive powers to implement them later this year under the English Devolution and Community Empowerment Bill.
However, in order for the levy to be effective, it needs to be invested back into the places it was generated.
Prof Brendan Paddison, is the Dean of York Business School at York St John University, Professor of Tourism Geographies and the academic lead for the Policy Lab. He says a levy in the area is viable, but needs attention to detail.
He 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.”
