Scarborough and Whitby ‘should benefit’ from tourism tax

​The announcement of new powers for mayors to implement a levy on overnight stays, as part of a plan to invest in transport, infrastructure, and the visitor economy, has received a mixed reaction.

​The elected Labour Mayor of York and North Yorkshire has described the scheme as a “game changer” for the region, while some hoteliers have expressed “deep concern” about its potential impact on businesses.

​Tourism is a major economic driver and source of employment in Scarborough, Whitby, and other towns and villages on North Yorkshire’s coast.

​The announcement of the new powers has been described as a “first step” by Mr Skaith, who has said he will be “working with local authorities, businesses, and the tourism sector as a whole, to really bring them all on the journey together and actually work out what we want to see from such a levy, how it’d work, how it’d be collected”.

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​Speaking to the Local Democracy Reporting Service (LDRS), Alison Hume MP said: “Scarborough, Whitby and the villages in my constituency are the jewels in North Yorkshire’s tourism crown.

​“Local coastal communities absolutely should benefit from a simple tourist tax.”

​However, she added that careful consultation was needed in order to decide how a levy would be applied, adding that it should be “levied on all accommodation, including short-term lets”.

​Mr Skaith has suggested that with 41 million visitors to the region every year, a “modest levy” could raise £50m for York and North Yorkshire to “turbocharge investment into things like transport, but also really boost investment into the tourism and hospitality sector, which is so badly needed”.

​The MP for Scarborough and Whitby added: “Mayor Skaith knows the importance of demonstrating that every pound generated locally is spent locally on our transport and infrastructure, not funnelled into a combined York and North Yorkshire pot.

​“For tourism and hospitality businesses in this area to support a tourist tax, figures demonstrating revenue raised, where it has been raised and where it is being spent would have to be transparent and easily accessible.”

​The Government has said that any fee would apply to visitors’ overnight trips, and it would be up to mayors and other local leaders to “introduce a modest charge if it’s right for their area”.

​Businesses, communities, and other interested parties can provide input on how the measure should work during a 12-week consultation period.

​The consultation is available on the gov.uk website and will close on February 18.