PLANS to charge visitors staying overnight in York and North Yorkshire are not a quick fix and the consequences could be grave, a hotel manager has warned.
Lionel Chatard, general manager of York's Middlethorpe Hall & Spa, said a visitor levy risked penalising people for longer stays, crushing small operators, deterring domestic tourists and money raised going elsewhere.
The hotelier added costs for tourists could be cut by slashing VAT on accommodation instead of increasing the burden on visitors who support around 4.5 million jobs across the UK.
A spokesperson for York and North Yorkshire Mayor David Skaith said plans showing the benefits of the levy would be set out by the end of the year.
It comes after the Government unveiled plans to give elected mayors powers to levy charges on overnight stays which could raise money to support high streets, transport and events.
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Local Government Secretary Angela Rayner said local leaders should have the power to make the most of the popularity of tourist destinations.
The Secretary of State added the money raised would help support services locals and visitors relied on.
Her comments follow a study commissioned by the mayor which found a £1-a-night charge on overnight stays could be viable and raise up to £26 million a year.
Government plans would see mayors given the choice over whether to introduce charges based on a percentage of the cost of accommodation.
Labour Mayor Mr Skaith has said money collected from the charges would be raised and spent region-wide.
Middlethorpe Hall & Spa (Image: Annapurna Mellor)
The mayor has been a vocal supporter of the charges but businesses and the Hospitality Association York industry body have said they fear it could put visitors off.
Mr Chatard, general manager of the Middlethorpe Hall & Spa in Bishopthorpe Road, said conversations in the industry were currently dominated by the controversial proposals.
He added he feared the charges would undermine the profession and would be used to plug holes in local government finances instead of being invested back into tourist areas.
In a LinkedIn post, Mr Chatard said: “While some view this as a quick fix for public funds, the consequences for our current fragile hospitality and tourism sector could be grave.
“Charging a percentage on accommodation penalises guests wishing to stay for longer, they spend in the local restaurants, the independent shops, and the wonderful attractions that our city is so proud to host.
“Day-trippers, coach groups, people attending large sporting events add to congestion but would pay nothing.
“Small bed and breakfasts and independent hotels do not have the profit margins to absorb extra costs, they will also face an unfair administrative burden, becoming tax collectors.
“Hard working families are already facing a cost of living crisis and will find that extra cost on overnight stays a further deterrent.
“Adding cost burdens threatens jobs and makes the UK less competitive globally.”
The mayor's spokesperson said Mr Skaith remained committed to meaningful engagement with the hospitality and tourism sector over the proposals.
The spokesperson said: “Following the publication of the Government's response to the public consultation on overnight visitor levies, the mayor will continue to meet with representative bodies as we move towards setting out an Indicative Investment Plan by the end of the year so that the sector, and crucially our residents, know the benefits that this extra investment will bring to York and North Yorkshire.”