Report identifies visitor levy as ‘viable option’

A £1-a-night charge on overnight stays could raise up to £26 million to support tourism and infrastructure across York and North Yorkshire.

A new report commissioned by mayor David Skaith has recommended introducing a flat-rate visitor levy, with money generated reinvested into the region’s hospitality and tourism sector and infrastructure used by visitors and residents.

Produced by York and North Yorkshire’s Policy Lab, the report examines different approaches to visitor levies, including flat and percentage-based charges, as well as the potential risks and opportunities.

It recommends a simple digital system built around a £1 nightly charge, with potential exemptions for lower-cost accommodation to reduce the impact on smaller operators and campsites.

The research also found that modest levies have not deterred tourists from established destinations, pointing to continued visitor growth in cities including Edinburgh, Manchester, Paris and Barcelona following their introduction.

Mayor 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 ahead of the results of a national consultation into visitor levies, with combined authorities expected to receive powers to introduce charges through the English Devolution and Community Empowerment Bill.

Mayor Skaith will continue discussions with tourism and hospitality businesses as proposals are developed alongside York St John University and the Policy Lab.

Professor Brendan Paddison, dean of York Business School at York St John University, Professor of Tourism Geographies and the academic lead for the Policy Lab, added: “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.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.