(Image: Carl Milner)
YORK and North Yorkshire's Mayor says a proposed 'tourist tax' for the county will not go above five per cent.
The visitor levy, which if brought in will be imposed on overnight stays including in Craven and the Yorkshire Dales, will be used to fund improvements in the county - but some North Yorkshire councillors have expressed concerns where the money will be spent, while the levy has been described as 'madness' by Skipton MP Sir Julian Smith.
Previously, a report commissioned by Mayor David Skaith proposed a flat rate of £1 per night, raising up to £26m for the region to invest back into the hospitality and tourism industry, and making improvements to the region's infrastructure.
Last month, the Government announced plans to grant mayors the power to bring in the levy, expected to be around five per cent.
Mr Skaith told the meeting of the Skipton and Ripon area committee of North Yorkshire Council that he had spoken to hundreds of hospitality businesses, would be speaking to more and that there would be a public consultation ahead of any levy being brought in.
At the meeting in Skipton, Mr Skaith was challenged on the proposed levy by councillors who believed it would take money from small businesses and be spent elsewhere.
Sir Julian Smith told the meeting: "This tourist tax is madness. Tourism businesses are on their knees at the moment and this tax will cause many, many problems. It is an unlimited tax that the Chancellor is giving. I know the mayor is saying five per cent, but this will be a real disaster for the hospitality business if it goes ahead."
Cllr Nathan Hull (Con, Washburn) said the result of a visitor levy would be a 'postcode lottery' where people chose to visit.
"I think it is a horrendous idea," he said, asking how could making it more expensive for people to visit increase tourism.
"I don't think a penny of it will be spent in my division. People come to my area because of its rural beauty, it is self supporting. It will impact on small businesses and money will be taken out of their pockets and spent elsewhere," he said.
Mr Skaith replied: "I don't think a small fee on overnight accommodation will put people off. To keep York and North Yorkshire looking like it does costs a huge amount of money."