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08
Nov
Explained: What is Harrogate’s planned tourism body and why does it need one?
It was revealed this week that a group of hoteliers in Harrogate have put forward plans to set up an organisation aimed at increasing overnight stays in the town.
Called an Accommodation Business Improvement District — sometimes referred to as ABID — the body could be set up as soon as next year.
But what is it and why does Harrogate need one? The Stray Ferret has looked in detail at the proposal in our Explainer below.
What is an accommodation BID?
Accommodation BIDs are tourism-based Business Improvement Districts (BID) which collect additional business rates payments, known as a visitor levy, from firms operating in a specified area.
Much like ordinary Business Improvement Districts are designed to increase footfall on behalf of levy payers, the accommodation BID would aim to increase overnight stays and length of stay.
Major cities such as Manchester and Liverpool already have an organisation aimed at improving stays for hoteliers.
The hotels which make up the Manchester Accommodation BID area.
In Manchester, 78 hotels in a defined area pay a city visitor vharge which amounts to £1 per room, per night.
The move is also seen as a legal workaround in the absence of any formal tourism tax in the UK.
Who is behind the Harrogate proposal?
A group of hoteliers in Harrogate have submitted the proposal to set up an ABID to North Yorkshire Council.
The proposals were first revealed in February this year, when former Harrogate Business Improvement District chief executive Matthew Chapman confirmed to the Stray Ferret that an accommodation BID was on the cards.
The hoteliers and Harrogate BID set up a steering group to draw up the proposal, which was co-chaired by Dan Siddle, general manager at The Crown Hotel.
Dan Siddle, general manager at The Crown Hotel in Harrogate.
According to a council report published this week, a total of 17 hotels were invited to engage in the proposal in January this year.
Why does Harrogate need an accommodation BID?
Hoteliers say the need to increase overnight stays is one of the main reasons for setting up an ABID.
The Stray Ferret approached Mr Siddle, who is also chair of the Harrogate Hotels and Tourism Association, to ask what an accommodation BID would bring to the town.
Mr Siddle said:
I think an ABID could be transformative for Harrogate, creating a dedicated approach to raising the profile of Harrogate and boosting overnight stays.
It’s an exciting opportunity for hoteliers to collaborate and achieve shared goals, strengthening the town’s appeal as a destination and ensuring the growth and success of the local hospitality sector.
Meanwhile, Martin Mann, chief executive of Harrogate District Chamber of Commerce, said the body would be able to pick up where Visit Harrogate — the former tourist body — left off.
The scrapping of Harrogate Borough Council led to the loss of Visit Harrogate, meaning a lack of marketing to promote the town.
Mr Mann 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 in to North Yorkshire being from visitor and hospitality, it is very important that we retain our unique identity
Visit North Yorkshire run by North Yorkshire Council is planning some fantastic projects across the county to promote tourism both from within and from outside the county, but this ABID will really help Harrogate to stand above the rest, and, we hope, encourage events to be held in Harrogate that will benefit the whole town.
How would an ABID work in Harrogate?
According to the council report, a ballot would be held where a majority of businesses affected by the ABID would need to vote in favour of the proposal.
Those who would fall under the ABID would include hotels or short-stay serviced apartments which have a rateable value of £55,000 or more and fall within the specified accommodation BID area.
It would then levy a £2 per room, per-night visitor levy on those hotels to raise funds to spend on destination marketing and attracting events.
According to Harrogate BID, the levy is estimated to raise around £679,000 a year.
However, Mr Mann pointed out that the levy would mostly fall on larger hoteliers.
Should the ballot be successful, an ABID board would be set up and would operate for a five-year term.
What happens now?
North Yorkshire Council, which would act as ballot holder for the ABID process, is currently considering the proposal.
Should it approve the proposal, a ballot will be held.
According to a council report, a provisional date for a ballot has been set for January 27, 2026 — though this is subject to change.
It means an accommodation BID could be set up in town by April 1 next year.
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