Political and business leaders gave differing views on whether a tourist tax could be introduced in North Yorkshire during a debate on Friday (July 11).

The tax, which generates revenue from tourists, is common in Europe.

The Scottish Parliament passed legislation that enables local authorities to introduce the charge in 2026/27 and the Welsh Government said last year it would introduce a draft bill on the subject. But no such legislation exists in England.

Tourism generates more than £4 billion each year in North Yorkshire, according to figures released by North Yorkshire Council this week. The council data revealed 32.2 million  people came to the county in 2024, including both day and overnight visitors, which is an increase of 3.8 per cent on 2023.

A panel of political leaders at an event organised by Harrogate District Chamber of Commerce at the Great Yorkshire Show was asked whether a tourist tax should be introduced in North Yorkshire.

Councillor Carl Les, the Conservative leader of North Yorkshire Council, said he believed all three Labour majors in North Yorkshire supported such a measure, adding:

But Dan Siddle, general manager of the Crown Hotel in Harrogate, told the panel it would be a mistake to go down the legislation route.

Mr Siddle also chairs a steering group set up by Harrogate Business Improvement District to consider whether the town should introduce an accommodation BID, which is an alternative form of a tourist tax that doesn’t require government legislation. Manchester and Liverpool both introduced accommodation BIDs two years ago, which charge levies on hotels and serviced apartments.

Mr Siddle told panel members they should allow local business leaders to take the initiative on the issue rather than push for government legislation. 

He said the town’s hoteliers were already doing this and wanted to work collaboratively with other groups on a scheme that benefited local businesses.