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15
Feb
Harrogate hotels hope for economic boost as tourist tax decision looms
“Sometimes there is the perception that Harrogate will look after itself because it’s famous for being a great leisure destination," says Gemma Rio. "But if it is ignored then it risks decline."
Ms Rio is talking days before the outcome of a ballot among the 15 largest hotels in Harrogate on whether to set up an Accommodation Business Improvement District.
The ABID would introduce a £2 per room, per night levy — otherwise known as a tourist tax — on visitors to the following hotels:
- Cedar Court Hotel
- Crown Hotel
- Crowne Plaza
- The Old Swan Hotel
- The Cairn Hotel
- The Yorkshire Hotel
- The White Hart Hotel
- Hotel Du Vin
- West Park Hotel
- The Harrogate Inn
- Premier Inn (town centre)
- Travelodge (West Park)
- Travelodge (town centre)
- The Studley Hotel
- Majestic Hotel
The Majestic Hotel
The levy is expected to raise £679,000 a year, which would be used for marketing Harrogate and promoting business and leisure events that increase overnight stays.
As interim chief executive of Harrogate Business Improvement District, and former head of tourism for North Yorkshire Council, Ms Rio has a deep understanding of the visitor economy and has been closely involved with the ABID proposal.
She feels the widely expected ‘yes’ vote on February 18 would provide a boost to the local economy from January 1 next year, when the new charge would come into existence.
She says:
The visitor economy is a huge driver of Harrogate’s economy — it’s second only to real estate — so it’s massive. It’s a tough economic environment so we need some investment sooner rather than later.
She says Harrogate “no longer receives heavy public sector investment into the visitor economy” and the town has felt the loss of Visit Harrogate, which was absorbed into Visit North Yorkshire following the local government shake-up in 2023 that saw Harrogate Borough Council replaced by North Yorkshire Council.
An ABID, says Ms Rio, could fill the gap in local tourism marketing left by Visit Harrogate. She adds:
We benefit from the work of Visit North Yorkshire. They do some great work on a countywide level, but Harrogate is a destination in its own right and the destinations within North Yorkshire are all quite different. We do feel Harrogate needs its own individual representation on a town level and that’s what an ABID would be able to do if it had these funds.
This is our chance for Harrogate to take charge of its own destiny and continue to survive and thrive as a visitor destination.
Mayor David Skaith (centre), alongside Gemma Rio and hoteliers and business leaders at this month's meeting.
Mayor plans separate tourist tax
Hoteliers have spent two years planning the ABID. They were, therefore, less than impressed when David Skaith, the Labour mayor of York and North Yorkshire, announced plans for a separate regional tourist tax in the same week that they asked North Yorkshire Council to run a ballot on whether to create an ABID in Harrogate.
Mr Skaith says his proposed £2-a-night visitor levy, which would apply to all overnight accommodation including bed and breakfasts and yurts, would generate £52 million a year and be a “game-changer” for the region. However, a survey by North Yorkshire Council revealed 71% of businesses oppose it.
By contrast, Ms Rio says there is “a lot of local positivity” about a Harrogate ABID because the charge would only apply to the 15 largest hotels, and the funds would be ringfenced for the town and managed by a local “business-led board so there’s no risk of funds leaking out in directions they don’t want them going”.
Nevertheless, the mayor’s curveball made the hoteliers pause to consider for thought before resolving to push ahead. Mr Rio says:
“Harrogate has been on this journey for the best part of two years and is so close to finishing the finish line. The appetite is to continue.”
Talks with the mayor this month also convinced them his proposal remains distant, while theirs could be implemented in 10 months.
The ABID ballot closes on February 17, and the result is expected to be announced the following day. If approved, a 10-month set-up period will see a board and staff appointed and policies implemented.
Not everyone supports a tourist tax, but Ms Rio has little doubt it will succeed:
I’m not overly concerned about pushback from visitors because we’ve been closely watching Manchester and Liverpool who already implement this and the pushback they have had has been minimal. The funds we would generate and therefore the positive promotion we would be able to do for Harrogate would outweigh the one or two people who might have an issue with the £2 charge.
Ms Rio, who has been involved with the ABID since she became interim chief executive of Harrogate BID following Matthew Chapman’s sudden departure in June last year, expects to return to her role as a consultant next month.
A new chief executive of Harrogate BID is expected to be announced imminently. Whoever it is could soon be in charge of one of two sister BIDs in Harrogate, each run by separate boards.
The town should know in days whether it will happen. Whether it has the desired impact on tourism will take years to ascertain.
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