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01
Feb
Harrogate hoteliers set for crunch tourist tax talks with mayor
Harrogate hoteliers are to hold crunch talks with Labour mayor David Skaith on Tuesday (February 3) about proposed new tourist taxes.
A group of hoteliers want to set up an Accommodation Business Improvement District, which would enable them to introduce a charge for overnight visitors to the town’s 15 largest venues.
The funds would be reinvested in initiatives that encourage more people to stay in the area.
The result of a ballot on whether to set up ABID is expected around February 17.
But some hoteliers are angry that David Skaith, the Labour mayor for York and North Yorkshire, is separately lobbying for the introduction of an overnight visitor levy on all overnight stays in the region.
It means the town could go from having zero tourist taxes to two.
Local fears
Mr Skaith has said an overnight levy would be a “total game changer” that could generate more than £50 million a year.
But a source told the Stray Ferret some hoteliers, who had carefully planned their ABID for years, weren’t impressed by the mayor’s rival proposal and were eagerly awaiting the opportunity to put their concerns to him.
The source added some people were riled by Mr Skaith’s plans to raise £50 million from a tax on tourists at a time when the Labour government had reduced North Yorkshire Council’s budget by about £30 million by axing the rural services delivery grant and adopting a new fair funding formula.
They added feelings were exacerbated by fears that money generated by visitors to Harrogate could be spent elsewhere in the region by the York-based mayor.
By contrast, funds generated by the Harrogate Accommodation BID would be ringfenced locally.
Tuesday’s meeting has been organised by Harrogate Business Improvement District, which has worked with Harrogate Hospitality and Tourism Association on setting up an ABID.
It has not invited the Stray Ferret to the event and has declined to our requests for comment.
The source said people were nervous about commenting ahead of such a delicate meeting, and with the ballot result looming.
The Yorkshire Hotel in Harrogate.
A key month
The situation on tourist taxes should be clearer by the end of this month (February).
Chancellor Rachel Reeves’s 12-week consultation on plans to give regional mayors powers to introduce an overnight visitor levy ends on February 18.
If adopted by Mr Skaith in York and North Yorkshire, it would see a £1-per-room, per-night charge introduced on all overnight accommodation, including yurts and bed and breakfasts.
Mr Skaith previously said:
I know many of you are concerned, and I appreciate that. The sector has been under sustained pressure for a prolonged period. I firmly believe that the potential significant income from an overnight visitor levy will be fundamentally game changing for our region.
The Harrogate Accommodation BID’s proposed £2-per-room, per-night charge would only apply to people staying at the town’s 15 largest hotels with a rateable value of £55,000 and above.
It would raise an estimated £679,000 a year, which would be spent on projects that boost overnight stays and attract new visitors and events in the Harrogate area.
Martin Mann
Dan Siddle, general manager at the Crown Hotel, was appointed co-chair of a steering group to develop the ABID proposal last year.
Mr Siddle said previously:
I think an ABID could be transformative for Harrogate, creating a dedicated approach to raising the profile of Harrogate and boosting overnight stays.
Martin Mann, chief executive of Harrogate District Chamber of Commerce, is also in favour. He said:
The ABID will give Harrogate a fighting fund that can be used by the town to promote our fantastic town and the wider visitor attractions now that Visit Harrogate is no longer operational.
There has been no substantive investment in hospitality and the visitor economy since 2010, and with a fifth of all income coming into North Yorkshire being from visitor and hospitality, it is very important that we retain our unique identity.
Tuesday's meeting may be tetchy, but it could go a long way to finding a way forward.
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