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Mayors in Yorkshire have responded positively to the government’s recent decision to grant them the authority to implement a tourist tax on overnight stays. This new policy allows regional mayors to impose a modest fee on visitors if deemed suitable for their locations. David Skaith, Mayor of York and North Yorkshire, has been a long-time proponent of this levy, describing it as a potential “game changer” for his area. Similarly, Tracy Brabin, Mayor of West Yorkshire, expressed her delight at the announcement. Despite this support, representatives from the hospitality sector voiced serious concerns that the additional charge could negatively affect business conditions.
The Local Government Secretary, Steve Reed, framed the new powers as putting UK mayors on par with counterparts in major cities worldwide, including New York, Paris, and Milan, where levies on short-term visitors are already established. Reed highlighted that funds generated from such charges could be reinvested in local community initiatives and improvements to the tourism experience, potentially attracting more visitors without requiring central government approval. He also pointed to research suggesting that reasonable fees tend to have little effect on overall visitor numbers.
David Skaith emphasized the significance of the tourist tax for York and North Yorkshire, which annually welcome around 41 million visitors. He argued that even a small fee could dramatically transform how the region supports transport infrastructure, businesses, and the broader visitor economy. Academic research conducted by York St John University in partnership with the mayoral combined authority found that a £1 nightly charge could yield over £26 million annually, with the revenue potentially doubling to more than £52 million if the fee were set at £2.
While some regional leaders endorse the visitor levy, others in the hospitality industry remain apprehensive. The Hospitality Association York expressed disappointment at Skaith’s advocacy for the tax, warning that additional costs could exacerbate already difficult trading conditions. They noted a decline in average daily room rates and secondary spending in hotel outlets, indicating that visitors are highly price-sensitive. The group also highlighted that only about 20% of tourists in North Yorkshire stay overnight, and questioned whether the funds collected would genuinely enhance the tourism experience or simply compensate for budget shortfalls in local councils. Similarly, Craig Dowie, owner of the Crown Hotel in Bawtry, described the tax as another financial burden passed on directly to customers, an added strain on hospitality businesses already facing challenges. Conversely, the Sheffield Chamber of Commerce welcomed the initiative, with executive manager Tracy Viner expressing optimism that a reasonably set levy could stimulate the local economy and generate opportunities benefiting the wider region
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