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11
Feb
'Tourist tax': Could it be introduced in Harrogate?
A tourism-based BID with the power to levy a visitor charge could be set up in Harrogate amid continued debate nationally over ‘tourist tax’.
Matthew Chapman, chief executive of Harrogate Business Improvement District, told the Stray Ferret that the BID and other accommodation providers are “exploring the process and benefits” of setting up such an organisation.
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.
The move comes as David Skaith, Labour Mayor of York and North Yorkshire, said last week that he would back the power to impose a visitor levy which could also be used to help pay for the upkeep of tourist hotspots.
Matthew Chapman, manager of Harrogate BID
Mr Chapman told the Stray Ferret that work on an accommodation BID for Harrogate was at an early stage and the BID would consider its next steps once it had further findings.
He said:
Harrogate BID, alongside a group of experienced personnel from organisations in the town, most of which are from the accommodation sector, have been working together since the autumn on exploring the process and benefits of an Accommodation BID specific to and directly supporting Harrogate.
This work is at an early stage, with the group currently engaging with accommodation providers in Harrogate to which the results of the findings will be used to understand our next steps.
We have been researching experiences and monitoring processes in other towns and cities across the UK to identify potential options. One of the clear points highlighted so far, is this area should be led by and be a benefit to the accommodation sector and tourism in the town who would facilitate the potential visitor levy, and should not be used to fund statutory public services.
We also believe this could only currently be delivered through BID legislation.
The move could see Harrogate join Manchester and Liverpool in setting up an accommodation BID which collects a visitor levy from its members.
In Manchester, 78 hotels in a defined area pay a City Visitor Charge which amounts to £1 per room, per night.
The hotels which make up the Manchester Accommodation BID area.
In April 2024, the BID said the levy raised £2.8 million which was spent on street cleaning and marketing campaigns.
The move is seen as a legal workaround in the absence of any formal tourism tax in the UK.
‘Tourist tax’
It comes as politicians have called for the government to introduce a tourist tax to help areas raise funds for public services.
Labour mayor David Skaith has joined senior York councillors and York Central MP Rachael Maskell in calling for the levy amid debate about its effect on the local tourism industry.
The government has said it has no plans to give local authorities in England powers to introduce tourism taxes.
David Skaith, Mayor of York and North Yorkshire.
West Yorkshire Mayor Tracy Brabin told MPs a visitor levy had been floated in talks with Chancellor Rachael Reeves about more tax powers for regional authorities.
Labour’s Ms Brabin told the Housing, Communities and Local Government Committee tourist taxes could help mayoral combined authorities become more financially self-reliant.
Mr Skaith said mayors would need more powers to raise their own funds as they take on more responsibilities.
The mayor said:
York and North Yorkshire are amazing places to visit and welcome more than 25m visitors a year.
A modest visitor levy, like those in most European cities, would allow us to invest in the public services, helping us to keep our great places attractive for both residents and visitors, as well as improving services that residents rely on, such as transport.
However, organisations such as the Hospitality Association York and others have claimed the charges could put visitors off and strike a blow at already-struggling businesses.
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