Hospitality leaders have criticised the mayor’s bid to bring in a tourist tax in York and North Yorkshire.
The Policy Lab, launched by York and North Yorkshire Mayor David Skaith, has drawn up plans for a visitor levy, which it says could bring in £52 million a year.
It would charge people £2 a night to stay in the area.
The Hospitality Association York (HAY), which represents many tourist-dependent businesses in the city, has expressed its “deep concern” over the proposals.
HAY says it is “extremely disappointed to read that David Skaith, Mayor of York and North Yorkshire has lobbied the Chancellor, Rachel Reeves for a Mayoral visitor levy”.
“Hoteliers remain deeply concerned about the impact of further costs amidst what are already extremely difficult trading conditions, not least since the catastrophic budget last year,” a HAY spokesperson said. “To echo UK Hospitality’s campaign, hospitality is being #TaxedOut.
“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.
“Secondary spend in hotels’ outlets and restaurants has also seen a decline year on year. This trend is also prevalent across the country with very few exceptions, which reflects the price conscious consumer’s behaviour furthermore.
“Data highlights that of the 32 million tourists to York and North Yorkshire, only 6.1 million stay overnight, meaning that less than 20% of tourists are to be targeted for this ‘tourist tax’, further highlighting that hospitality is being unfairly penalised.”
HAY has commissioned research by York St John University into the impact of the tourist levy. This research is still at an early stage.
The spokesperson continued: “HAY members feel that there has been a disappointing lack of transparency.
“At no point has any contact has been made by the Mayor nor the combined authority to discuss this matter.
“HAY believes that it is irresponsible for the use of these un-qualified figures, and the emotive sum of £52 million, as a political lobbying tactic to garner public support for a campaign that has invited no consultation from any hospitality bodies within York & North Yorkshire.
“Tourism tax supporters often cite that similar tourism levies are commonplace in other destinations; however, this does not consider the fact that those countries pay an average of 10% VAT on hospitality compared to 20% in the UK, meaning that the comparison is not being made on a level playing field.
“We have yet to be assured that any raised funds are spent on things to benefit the tourism experience, rather than the likely scenario which is that they will simply plug the gaping holes in councils’ budgets.”
