Visitors staying overnight in York and North Yorkshire could be charged £1 a night under proposals which it is estimated could raise up to £26 million for the region.
A new report commissioned by York and North Yorkshire Mayor David Skaith has examined how a visitor levy could operate and recommends a flat £1 nightly charge as one option for the region.
Produced by York and North Yorkshire’s Policy Lab, the report considers different models, including percentage-based charges, as well as the potential benefits and risks.
It recommends a simple, low-cost digital system for collecting a £1 charge, with possible exemptions for lower-cost accommodation to reduce the impact on small operators and campsites.
Money raised could be reinvested in the tourism and hospitality industry as well as infrastructure and services used by visitors and residents.
The report examined experience elsewhere and concluded that modest levies had not deterred tourists from destinations with strong visitor appeal, pointing to places including Edinburgh, Manchester, Paris and Barcelona.
Mayor David Skaith said: “Millions visit every year, and that’s why a visitor levy could be a total game changer for us.
“Thriving communities and thriving destinations go hand in hand, but welcoming so many visitors puts pressure on the infrastructure and services our residents rely on.
“We must get this right for our county so we can invest in our communities, and our hospitality and tourism businesses.”
Professor Brendan Paddison, academic lead for the Policy Lab, stressed that the report was not arguing for or against introducing the charge.
He said its findings suggested a levy was a “viable option worth exploring further”, but added that any scheme would need to be simple and proportionate, with meaningful engagement with businesses and communities.
He said there should also be a clear commitment to reinvest money raised into the areas and visitor economy generating the revenue.
No decision has yet been taken to introduce the charge.
The report comes ahead of the results of a national consultation on visitor levies, with combined authorities expected to receive powers to introduce them under the English Devolution and Community Empowerment Bill.
Mr Skaith is expected to continue discussions with tourism and hospitality representatives as proposals are developed over the coming months.
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