Powers to levy charges on overnight stays would be a total game-changer, York and North Yorkshire’s mayor has said following a national announcement.

Mayor David Skaith said plans for a visitor levy, otherwise known as a tourist tax, would drive investment into local communities.

The Labour mayor added it would also raise funds to support tourism and hospitality businesses which are not currently available.

But businesses including those in hospitality and tourism remain concerned that the chargers could harm them at a time when they are already struggling.

Harrogate hoteliers voted against introducing their own tourist tax this year.

Mr Skaith’s comments come after plans to give mayors the power to introduce the charges were unveiled as part of the King’s Speech on Wednesday, May 13.

The government’s proposed legislative agenda includes the tabling of an Overnight Visitor Levy Bill during the coming Parliament.

£2-a-night charge

Visitor levies would see guests charged a nightly fee on top of their accommodation bill.

The Government previously announced it would give mayors the powers after a national consultation closed in February.

Mayors would choose whether or not to introduce the charges under current Government plans.

City of York Council’s Labour leaders and its Liberal Democrat opposition have previously voiced support for the charges, along with the mayor, since late 2024.

The York and North Yorkshire Combined Authority and York St John University estimate charges of £2-a-night could raise up to £52.2 million-a-year.

Backers have said the money could be invested in areas popular with holidaymakers and help manage the pressures of mass tourism.

But York hotels, attractions and the city’s Hospitality Association industry body have warned the charges could put tourists off amid a difficult time for businesses, costing jobs.

Mr Skaith said he would continue to press the government to make sure decisions about levies are made at a local level.

Speaking after plans for legislation were unveiled on Wednesday, Mr Skaith said: 

“A visitor levy would be a total game changer for our region.

“It’s an opportunity to drive investment into our communities, and back businesses in our tourism and hospitality sectors with the support we all know they need, but nobody has the money for right now.”

Hospitality fears

Rain Newton-Smith, chief executive of the Confederation of Business and Industry (CBI), said they were concerned about the effects of the move.

The chief executive said: “Hard-pressed hospitality businesses are calling for local authorities to avoid introducing a tourist tax that could make holidays more expensive for domestic and international visitors.”

The Hospitality Association York (HAY) said in November it was disappointed that Mr Skaith had lobbied the government to get levy powers.

The body said: 

“York has seen a significant reduction in average daily rates across the city year on year, which identifies a highly price conscious overnight customer, meaning that any increase in costs will see a decline in visitors.”