Tourist tax: warning of 'real impact' of overnight visitor levy on Scarborough and Whitby

York and North Yorkshire Mayor David Skaith has pledged to introduce a European-style overnight visitor levy to the region to help fund community infrastructure and improve transport.

Even if York and North Yorkshire’s tourist tax is relatively small it could have a “real impact” on holidaymakers choosing to visit Scarborough and Whitby, the area’s Labour MP has warned.

Alison Hume made the intervention after meeting with the owners of Haven's Blue Dolphin Holiday Park near Gristhorpe, and is set to hold a roundtable with local hospitality businesses.

It comes as York and North Yorkshire Mayor David Skaith has pledged to introduce a European-style overnight visitor levy to the region to help fund community infrastructure and improve transport.

Tourist taxes are incredibly popular on the continent and raise hundreds of millions of euros each year in places like Paris and Barcelona.

Last Budget, then-chancellor Rachel Reeves announced that metro mayors would have the power to introduce an overnight visitor levy in their regions.

Research from York St John University has estimated that a £2-a-night flat levy in York and North Yorkshire would raise £52m, while a percentage tax could earn even more.

However, hospitality businesses have said it will deter tourists and is another cost to deal with after hikes in national insurance and the minimum wage.

After visiting the Blue Dolphin, Ms Hume said: “What came across very clearly, though, is how important affordability is.

“Our visitor economy depends on domestic tourism and families carefully weighing up the cost of a break.

“That means even relatively small additional charges can have a real impact on decisions about where people choose to visit.

“York and the Yorkshire coast are very different tourism markets.

“Before any firm decisions are taken, we need a serious discussion about what effect it could have on visitor numbers, local businesses and the affordability of family holidays.”

Mr Skaith told The Yorkshire Post that the overnight visitor levy would be a region-wide tax and also a percentage of a total bill.

The Labour mayors have together committed not to introduce a tourism tax above 5 per cent.

Mr Skaith said the funding would be used across York and North Yorkshire as otherwise it would not be fully utilised.

“If you invest in a transport system and you want to move people from York to Scarborough, it needs to be region wide,” he explained.

“If it was just geared towards Scarborough, then it wouldn't be able to support that whole route.”

Mr Skaith said his office had already done a lot of engagement in places like Scarborough and Whitby.

“I want to know what the challenges that we face, what the opportunities are.

“We've listened to a lot of communities on the coast as well about how it could potentially impact them.”

He said he hoped the visitor levy would “promote the sector and promote the region, but also support our communities who live here all year round”.

“The cost of hospitality and the visitor economy is a big one on the two local authorities,” he added.

“To keep York and North Yorkshire as nice as they are costs a lot of money and the opportunity to raise a very small fee on an overnight stay to actually put back into our towns and our places - I think it's a great opportunity for the patch.”