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19
Nov
New body drawing up plans for North Yorkshire visitor tax
Plans to charge visitors for overnight stays in York and North Yorkshire are being drawn up by a new combined authority body. It's thought the new tax - or levy as it is known - could raise up to £52.2 million annually.
Proposals setting out how a visitor levy could work and how much it could raise is the first project set to be undertaken by the newly established Policy Lab.
Professor Brendan Paddison, dean of York St John University’s York Business School, said a levy could fund infrastructure and environmental protection and ensure the benefits of tourism are shared fairly.
Labour York and North Yorkshire mayor David Skaith said the new Policy Lab, which is working on the proposals, aimed to turn great ideas into action.
The launch of the unit by the York and North Yorkshire Combined Authority and York St John University comes as estimates showed £2-a-night charges could raise up to £52.2 million each year.
A visitor levy, or tourist tax, could raise up to £26.1 million-a-year based on early findings.
More than 41.4 million people visited York and North Yorkshire in 2024 and 7.8 million stayed overnight, according to combined authority figures.
Data showed tourism contributed an estimated £6.2 billion to the region’s economy in 2024.
The government has said it currently has no plans to introduce a tourism tax nationally. But City of York Council councillors heard earlier this month that reforms currently making their way through Parliament would hand more powers to mayors and could pave the way for a visitor levy locally.
Councillors have previously backed a call to introduce charges in York, which supporters say could raise funds to help manage the pressures of mass tourism.
But critics including hoteliers, the Hospitality Association York industry body and others fear it could put visitors off.
Prof Paddison told a launch event for the Policy Lab on Tuesday (November 18) that visitor levies were the first proposals being researched by the new body.
It is also set to look at tackling coastal deprivation, explore the possibility of securing devolved powers for rural issues and investigate a more local approach to business rates.
York Business School dean Prof Paddison said:
We’re proud to be working in partnership on the new Policy Lab, which places robust, community-focused research at the heart of policy development.
By exploring the needs, priorities and lived experiences of local residents, we’re helping to shape evidence-led solutions.
With over 41 million visitors to York and North Yorkshire in 2024 and tourism contributing £6.2 billion to the local economy, there’s a clear opportunity to ensure that growth is sustainable and inclusive.
Mr Skaith said the new unit was about practical change that could improve the lives of everyone in York and North Yorkshire.
The mayor said:
York and North Yorkshire are full of brilliant people, world-class ideas and real ambition.
The Policy Lab brings communities, universities and businesses together to spark new thinking, solve problems.
The news comes after the Stray Ferret revealed North Yorkshire Council is set to consider proposals for a tourism-based BID in Harrogate.
The move would see an Accommodation Business Improvement District established in the town, which would aim to support the visitor economy.
The purpose of the organisation would be to increase overnight stays and length of stay.
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