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27
Nov
Harrogate hotels to be balloted over tourism tax
Harrogate hotels will be balloted in the New Year over whether to introduce a tourism tax.
The ballot will go ahead despite a separate tourism tax being muted for North Yorkshire.
The Stray Ferret revealed this month that an Accommodation Business Improvement District (ABID) could be established in the town, which would aim to support the visitor economy and have the power to levy a £2 per room, per night visitor levy on hotels.
The proposals were devised by Harrogate Business Improvement District and Harrogate Hospitality & Tourism Association and submitted to North Yorkshire Council.
A ballot is due to be held on January 27 to decide whether or not to set up the body.
However, Chancellor Rachel Reeves' decision to give mayors the power to impose a tourist tax as part of the Budget has raised questions over how an accommodation BID levy would work alongside another tourism levy.
In a joint statement following the announcement, Harrogate BID, Harrogate Hospitality & Tourism Association and Harrogate ABID Steering Group said a ballot was still planned for the ABID in the New Year.
It added that it would “begin conversations” with the mayor’s office over the York and North Yorkshire-wide tourist tax.
The statement said:
For over 18 months, the Harrogate BID and the Harrogate Hospitality & Tourism Association have worked in collaboration to pursue an Accommodation BID for Harrogate. A ballot is planned for January/February 2026.
The ABID model provides the opportunity to generate funds for Harrogate that can be managed locally by a hotelier-led board and invested directly into activity that will generate overnight stays and grow the local economy.
As the consultation period commences on plans for a York & North Yorkshire-wide visitor levy, we look forward to beginning conversations with the mayor’s office to ensure the needs of Harrogate’s businesses are considered.
A spokesperson for the group told the Stray Ferret that it was unclear at this stage how the mayor’s visitor levy would affect the ABID plan, but a ballot would continue to be pursued for the New Year.
As previously reported, Harrogate BID estimates that the ABID levy could raise around £679,000 a year.
The move comes as David Skaith, Labour Mayor of York and North Yorkshire, welcomed the introduction of a tourist tax.
David Skaith hand delivers letter to Rachel Reeves, Chancellor of the Exchequer, over tourist levy.
Mr Skaith lobbied Chancellor Rachel Reeves over the introduction of the powers in-person earlier this month.
The move will give the Labour mayor the power to levy a charge on overnight stays in the region. York and North Yorkshire Combined Authority, which Mr Skaith chairs, has estimated the power could help to raise up to £52.2 million each year.
Mr Skaith said:
A visitor levy in York and North Yorkshire will be a total gamechanger for our region. We’re home to beautiful towns, villages and cities.
A small charge on overnight stays can revolutionise how we deliver transport, support businesses, invest in infrastructure and the visitor economy. Building the healthy and thriving communities for our residents and everyone that comes to visit them.
We'll make sure this is right for our region, I'm committed to working openly and transparently with the Government and local partners to make sure this works for York and North Yorkshire through a comprehensive consultation process.
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