Why caution needs to be exercised when it comes to the visitor levy in North Yorkshire - Carl Les

But those headline figures must not lead anyone to think the sector is immune from pressure. It is not. The same data shows that visitor numbers fell last year, down 3.3 per cent on 2024. Day visits were down, and serviced accommodation visits declined. Those are not abstract figures. They reflect real pressures being felt by businesses in our towns, villages, rural areas and coastal communities.

That is why the debate about an overnight visitor levy must be handled with great care.

The report commissioned by Mayor David Skaith recommends a flat £1 pp per night visitor levy across York and North Yorkshire. It suggests such a “modest” charge could raise up to £26m a year to invest back into tourism and the infrastructure used by visitors and residents. No-one should dismiss the importance of that investment. Public toilets, transport, footpaths, parking, signage, visitor information, skills and destination marketing all matter. At present, much of the cost falls heavily on council taxpayers.

So there is a legitimate argument to discuss that visitors should make some contribution to the places they enjoy, provided the money is clearly ring-fenced, transparently managed and invested into the communities and businesses that generate it.

But there is an equally serious risk that must not be brushed aside. North Yorkshire is not the same as a major international city. Much of our visitor economy relies on domestic visitors, short breaks, family holidays, campsites, caravan parks, guest houses, self-catering and small independent businesses. In many parts of the county, visits are price-sensitive and businesses are already facing rising wage costs, business rates, energy bills and squeezed margins.

For some visitors, even a small additional charge may influence how long they stay, or whether they choose somewhere else altogether. For some businesses, particularly those operating in lower-cost or highly seasonal markets, another administrative and financial burden will come at exactly the wrong time.

This is not a simple debate between those who want investment and those who do not. North Yorkshire clearly needs investment in the infrastructure that supports tourism. But we must not damage the very sector we are trying to help.

Our own engagement with local businesses showed significant concern. The council’s survey received 277 responses from accommodation providers and visitor economy organisations. Many raised worries about price increases, reduced bookings, administrative complexity and whether money raised locally would genuinely be spent locally. Those concerns deserve to be taken seriously.

The geography of York and North Yorkshire also matters. York’s visitor economy is very different from rural North Yorkshire. A flat £1 charge may look simple on paper, and the government has acted to insist on a % charge, but with no cap. But any charge applied to a budget offering or low-cost family stay is very different in proportionate terms from a charge on a higher-value city hotel room.

In coastal and rural areas, where lower-cost accommodation plays an important role, the effect could fall hardest on the very visitors and businesses we need to protect.

As the Government gives mayors the power to introduce an overnight levy, then any decision here must be based on evidence, not enthusiasm for taxation, the Labour solution, alone. There must be widespread consultation. Residents must be part of that conversation too, because in North Yorkshire many visitors are also residents taking breaks elsewhere in the county.

There must also be safeguards. Any levy should be locally sensitive, simple to administer and introduced only with a clear prospectus, impact assessment and proper notice. Revenue must be ring-fenced and wherever possible reinvested in the places where it is raised. It must not disappear into a central political cooking pot with no visible benefit for the businesses collecting it or the communities affected by tourism.

North Yorkshire Council will continue to work constructively with the Mayor, as part of the Combined Authority, with the Government and the tourism sector. But constructive engagement does not mean ignoring risk.

A visitor levy may offer an opportunity to invest in the targeted marketing and infrastructure that tourism needs. But if it is introduced without care, it could make an already pressured sector more vulnerable.

Coun Carl Les the Leader of North Yorkshire Council.