Yorkshire mayors have welcomed a government decision giving them powers to introduce a tourist tax on overnight stays.
Under measures announced ahead of the Budget, regional mayors will be able to bring in a modest charge for visitors if appropriate for their areas.
Mayor of York and North Yorkshire David Skaith has long called for the tax, saying it would be a “game changer” for his region, while West Yorkshire Mayor Tracy Brabin said she was “delighted”.
But hoteliers expressed “deep concern” that the visitor levy would worsen trading conditions.
Local Government Secretary Steve Reed said the move would give mayors the same powers as their counterparts in cities like New York, Paris and Milan, where charges on short-term trips were already commonplace.
He added: “Money raised could then help fund local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors – without needing approval from central government.
“Research also shows that reasonable fees have minimal impact on visitor numbers.”
Skaith said York and North Yorkshire attracted 41m visitors a year and the small charge could “revolutionise” how the area delivered transport, supported businesses and invested in the visitor economy.
While making the case for a visitor levy earlier, he said York and North Yorkshire’s case was the only one backed by in-depth academic research.
The research carried out by York St John University and the mayoral combined authority found that a £1-a-night visitor levy could make more than £26m a year across York and North Yorkshire, rising to more than £52m if the charge was set at £2.
In West Yorkshire, Brabin said: “This will allow us to invest more into making our regions even better places to visit, unlocking opportunities and help our businesses thrive.
“This is a further vote of confidence in devolution and shows the government is backing mayors to achieve our ambitions.”
However, not everyone is sold on a tourist tax, with the Hospitality Association York (HAY) saying it was “extremely disappointed” to read Skaith had lobbied for the levy.
A spokesperson said: “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.
“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.”
They added hospitality was being “unfairly penalised”, as only 20% of tourists in North Yorkshire were overnight visitors.
“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,” a spokesperson said.
The owner of a hotel in Doncaster said it was “just another tax” on already struggling hospitality businesses.
Craig Dowie, of the Crown Hotel, Bawtry, said: “This government is throwing everything at us at the moment and businesses will not absorb it.
“If someone is paying £80 for a room now, it will be £82 plus VAT and it will be a straightforward re-charge on to the customer.”
He added: “No business will absorb the cost, it will get passed on in full to the customer.”
