Yorkshire firms call for guarantees that tourist tax would be used to boost region's visitor economy
Figures from Yorkshire’s hospitality industry have called for guarantees that any money raised through new tourist taxes will be used to promote and improve the region’s visitor economy.
Earlier this week, the Government unveiled plans which will allow local leaders to charge a levy on the cost of accommodation to overnight visitors, with reports indicating that the levy will have no upper limit.
The announcement has been met with hostility from much of the hotel industry, with key figures from firms including Premier Inn owner Whitbread and Butlin’s among those to criticise the plans
Speaking to The Yorkshire Post, Simon Cotton, group managing director of Yorkshire hotel chain, Fat Badger Group, said: “I want absolute guarantees that any money raised from hospitality and tourism is ringfenced and committed to be spent back into hospitality and tourism, and not just used as another tax to basically fill black holes in other areas.
“It needs to be used to make sure the visitor experience is better, and ultimately to make sure our businesses remain buoyant and vibrant.”
Mr Cotton added that he was concerned a large portion of the money raised could be spent on administration costs associated with collecting the funds. He also called for a board of industry experts to be consulted on any plans for the money.
Louise Wright, commercial director at Pudsey-based hotel marketing agency, Punch Hospitality, also called for guarantees that money raised through the levy would be used to help local businesses.
She said: “I think there is an opportunity for a visitor levy to be positive for Yorkshire’s hospitality industry, but only if it is implemented carefully and there is absolute transparency about where the money goes.
“From a hotel perspective, the important question isn’t simply whether a guest is being asked to pay an additional £1. It’s what that £1 ultimately does for the destination. If the money is genuinely reinvested into attracting more visitors, improving the visitor experience, infrastructure, and promoting Yorkshire as a destination, then there is a strong argument that hotels could ultimately benefit.”
Ms Wright called for the hospitality industry to be involved in deciding how the money raised is spent.
Plans for the tax were first announced under Sir Keir Starmer following similar schemes introduced by the devolved administrations in Scotland and Wales. Charges of a similar nature already exist across Europe, with the revenue used to fund local services. Local leaders would decide how to invest the money raised from the levy.
It comes after three of Yorkshire’s metro mayors welcomed the announcement of the new levies. The mayors of West, South and North Yorkshire signed a joint statement saying they were prepared to commit to setting overnight rates between 0 and five per cent of accommodation costs.
The Government has argued that the move brings England in line with other European countries including Germany, Italy and the Netherlands.
David Brown, director at Farm Stay UK, which has multiple sites in Yorkshire, added: “We recognise the pressures on local authority finances, but any overnight visitor levy must be introduced with great care. Farm stays already operate on tight margins, and an additional charge could increase the cost of a break while creating extra administration for small, often family-run businesses.”