A proposed tourist tax in North Yorkshire could be a “game-changer” for the visitor economy — but only if it is introduced in the right way, the region’s mayor has said.
Labour Mayor of York and North Yorkshire, David Skaith spoke in response to questions about the proposed levies at a York and North Yorkshire Combined Authority meeting in York on Tuesday.
North Yorkshire Independent Cllr Janet Jefferson said she was concerned about the impact on smaller operators after a difficult year for the tourism industry in 2025.
Mr Skaith said talks with tourism and hospitality businesses were ongoing as local officials await more details from the Government.
It comes after ministers said mayors would get powers to levy the charge, otherwise known as a tourist tax, to raise money which could support high streets, transport and events.
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.
Mr Skaith 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.
Cllr Jefferson, who has worked in hospitality, told the combined authority’s Overview and Scrutiny Committee on Tuesday she was worried that it could cost operators more in VAT bills.
She added questions remained over how charges would affect the various types of accommodation catering to different groups of guests.
Cllr Jefferson, of Castle Division which covers part of Scarborough, said: “Tourism is a very diverse industry, the levy could make things difficult for family accommodation providers.
“Are we going to charge per room, for couples and children, we’ve also got guest houses, holiday lets, caravans and chalets.
“What about groups of foreign students who come and stay for up to 28 days, or Scout and Guides groups?
“There’s also children who come and stay from schools, sometimes it’s the only accommodation on holiday they get.”
Mr Skaith said nothing about the charge was set in stone and more details would emerge as the national proposals make their way through Parliament.
He added the Policy Lab study had not presented the levies as purely sunshine and rainbows and had offered a warts-and-all look at the potential impact.
The mayor said: “I worked in hospitality for many years and I understand the challenges it faces, but they’re not just in the last six months, visitor numbers have been dropping for years.
“This is an opportunity to bring money into the sector and support it.
“Discussions with the hospitality industry are ongoing and one of the things we’re talking about is how we can elongate the tourist season for places on the coast for instance where January and February is very quiet.
“We’ve had events like the Tour of Britain which cost money to put on but the return is huge.
“People come and visit towns like Helmsley but it costs money to support those places, I want this to work but it has to be done right, it could be a game-changer.”
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