Regional leaders welcome tourist tax as industry airs concerns
Regional leaders have welcomed plans announced by the Government to allow mayors to charge an overnight visitor tax.
After a meeting at Number 10 North yesterday, it was announced mayors will be given the new powers, with funds raised being spent on improving high streets, public transport and tourism-boosting events.
The Yorkshire Post understands West Yorkshire is already planning to introducing the levy, although details are yet to be discussed, while York and North Yorkshire Mayor David Skaith published a report earlier this week which found setting the new tax at £1 a night would generate £26m a year.
The government says it will protect budget holidays by requiring the levy to be charged as a percentage of the cost of accommodation, rather than as a flat fee, to shield families from disproportionate costs for cheaper holidays.
It says the move brings England in line with other countries such as Germany, the United States, Italy, Netherlands, and Canada, and will directly benefit England’s tourism hotspots by investing money back into their communities, helping to boost tourism, manage footfall and improve areas for those living there.
But some tourism bosses have raised concerns about potential knock-on effects, and the fact there will be no upper limit on what mayors can charge, though the Government says it is unlikely mayors would make it too expensive, with most indicating it would be a few per cent.
Shortly after the initial announcement, Labour’s 10 regional mayors announced they would all commit to a 5 per cent cap, saying this was a ‘reasonable ceiling’.
A statement signed by the mayors of North, West and South Yorkshire said: “We recognise that the sector is looking for certainty and understand concerns about large levies as seen in cities such as Amsterdam, or extreme variation between regions which could damage competitiveness.
“Therefore, we are prepared to commit that if overnight visitor levies are introduced in our areas, we will set the rate between 0-5 per cent of the accommodation cost.”
Premier Inn owner Whitbread and Butlin’s were among major businesses to criticise the plans, while industry group UKHospitality said it believes “33,000 people could lose their jobs as a result of this tax”.
Tracy Brabin, Labour Mayor of West Yorkshire, said: “Devolution is delivering and it is right that mayors get these new powers to introduce an overnight visitor levy.
“Our beautiful region has so much to offer; from Brontë Country to the Hepworth Gallery, the rolling moors to our bustling city nightlife, arts and theatre to beautiful architecture.
“By asking people to make a small contribution, like in many other European countries, we can continue to invest in culture, grow our economy and ensure people want to visit for generations to come.”
Henri Murison, Chief Executive of the Northern Powerhouse Partnership, also welcomed the move, having campaigned for it for several years, and said local leaders were best placed to decide how money should be raised and spent, but he also urged the Government to take further steps.
“We do need to consider the balance of tax raised overall by Scottish authorities, in Wales and now the English regions added to that by UK Government.
“In our Budget consultation response, we have called on the government to undertake a review on the international competitiveness of the current rate of VAT on hotel stays and related costs alongside introducing this new mayoral power to make sure the UK maximises inbound tourism.”