Report recommends £1 per night tourist tax

A new report has recommended imposing a £1 per night tourist tax across York and North Yorkshire.

Commissioned by the mayor of York and North Yorkshire, David Skaith, the Policy Lab review said the levy could raise £26m for the region each year, which could be ring-fenced for tourism-related purposes.

According to the report, potential exemptions could be made for low-cost stays in a bid to reduce the burden on small operators and campsites.

Skaith said he believed introducing the visitor levy "could be a total game changer for us".

Evidence reviewed in the report found growth remained steady when a visitor levy was introduced in high appeal destinations, such as Edinburgh, Manchester, Paris and Barcelona.

It said substantial revenue could be generated from the scheme, with different models raising millions of pounds.

However, the report said the policy involved "clear trade-offs", particularly between fairness, simplicity and administrative complexity.

The flat rate model of £1 was preferred to a percentage-based model due to its simplicity and predictable revenue but it had a higher impact on budget accommodation.

The report recommended the model also have a built-in review mechanism.

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."

Professor Brendan Paddison, who is the academic lead for the Policy Lab, explained the report was not about making the case for or against the visitor levy but it provided evidence for an informed discussion.

"Our findings suggest that a visitor levy is a viable option worth exploring further, but the detail matters," he said.

"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."

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.

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