Exclusive:Visitor tax could revitalise seaside towns like Scarborough and Whitby, Mayor David Skaith says

While there has been clamour in York for some sort of visitor levy, Mr Skaith suggested North Yorkshire’s seaside resorts would also benefit from such a tax.

“The amount of visitors we get to Scarborough,” he told The Yorkshire Post, “you’re talking millions.

“It has huge scope to bring fresh investment into that region to really support the offering, and also really enhance that tourism and leisure sector.

“Our coastal areas are undoubtedly our most deprived areas, and need the most love and support. That kind of fresh investment could be transformative.”

He suggested in Scarborough the funds could be used to boost the High Street, while in Whitby it could go towards providing affordable housing.

But the mayor said if a tourist tax was brought in it has “got to be done in an open and transparent way”.

“People have got to understand how it’s been collated and what it’s being used for.”

Mr Skaith said the Government had been receptive to the idea of a visitor levy and engagement has been “really good”.

Currently, only Scottish councils can officially introduce a tourist tax, after Holyrood passed legislation on this last year, however there are workarounds which have allowed Manchester to add a £1 fee on hotel rooms.

Edinburgh became the first city to approve a visitor levy last month. People staying in the city will have to pay a 5 per cent fee per night, capped at seven nights – which is expected to raise up to £50 million a year for the local authority.

This would be a significant funding boost to combined authorities, which have on average flexible spending of £20m.