Dozens of tourism businesses and organisations have taken part in a countywide consultation to shape our response to a national survey on the Government’s plans for a visitor levy on overnight stays.
We launched our own survey in December to gather the views of businesses and organisations involved in North Yorkshire’s multi-billion pound tourism sector about the proposals for the visitor levy.
Chancellor Rachel Reeves unveiled plans during her Budget announcement in November for elected mayors to be given powers to introduce the visitor levy on overnight stays.
A total of 277 responses were received from businesses and organisations involved in the visitor economy across the county to the survey, which was conducted by our destination management organisation, Visit North Yorkshire.
The majority of respondents were against a visitor levy, with 71 per cent of replies voicing opposition to the proposals. A total of 18 per cent of respondents supported the Government’s plans while a further 11 per cent had a neutral view on the proposals.
A report outlining the findings of the survey in the county has been prepared and a letter from executive member for open to business, Cllr Mark Crane, is due to be sent to the Government to outline our response to the proposed visitor levy.
Cllr Crane, whose responsibilities include the visitor economy, is due to consider the report on the consultation during a meeting on Tuesday next week (17 February).
If the report is approved by Cllr Crane, the survey results will then inform our response to the Government’s own national consultation on the visitor levy proposals, which closes on Wednesday next week (18 February).
Cllr Crane said: “We would like to thank all the businesses and organisations who took the time to take part in the survey in North Yorkshire. It is important that we listen to what the tourism sector is telling us locally and I am very keen to use our voice to highlight what businesses are saying about the proposed visitor levy to the Government.
“If a visitor levy is to be introduced, then it is vital that elected mayors consult extensively with the businesses and organisations that will be impacted. If the levy goes ahead, there needs to be flexibility on a local level to spend the money raised where it is needed most.
“The visitor economy is so important for our local economy and attracts visitors from across the world to our beautiful market and coastal towns and the wealth of cultural experiences that are on offer.
“We have a vast range of tourism businesses, from luxury hotels attracting international visitors to budget self-catering and caravan accommodation serving families from the UK.
“All businesses are already under extreme pressure from rising VAT, business rates, energy costs and wage increases, and we need to make sure that all of our tourism sector is not adversely affected if a visitor levy is introduced.”
Tourism is worth more than £4 billion to the local economy and 32.2 million people came to North Yorkshire in 2024 including both day and overnight visitors, which is an increase of 3.8 per cent on 2023.
However, the majority of respondents to the countywide survey voiced concerns that the introduction of a visitor levy for overnight stays would lead to a decline in the number of people visiting North Yorkshire.
Many respondents feared that even a modest additional charge could discourage overnight stays or shorten trips, particularly among visitors and families who have tighter financial budgets.
Several replies highlighted concerns that visitors could be inclined to choose areas without a levy that would provide a cheaper option for overnight stays.
Another major theme was the administrative burden associated with implementing and managing a levy. Respondents expressed concerns about the additional time and cost required to adjust booking systems, update payment processes, and maintain accurate records. This was seen as especially challenging for small businesses with limited administrative capacity.
Many businesses argued that a levy applied solely to overnight accommodation and not the wider tourism industry, so it was therefore a “tourism tax” specifically for accommodation providers.
If a visitor levy is introduced in North Yorkshire, the majority of respondents were clear that any revenue should be used to fund improvements to enhance visitors’ experiences and support the long-term sustainability of tourism across the county.
The majority of respondents selected the “strongly oppose” option when asked about whether they supported a visitor levy in North Yorkshire. This group accounts for about half of all respondents who answered the stance question, and approximately 70 per cent of those who opposed.
Responses came from every major part of the visitor economy, with the largest number from accommodation providers, followed by visitor attractions, food and drink businesses, tourism-related retail, event organisers, activity providers and community groups.
Respondents were geographically spread across the county, including the coast, the Yorkshire Dales and North York Moors National Parks, market towns, rural villages and larger towns including Scarborough and Harrogate.
The survey in North Yorkshire was specifically for businesses and organisations involved in tourism, and did not seek the views of residents and visitors.
The report to the executive member for open to business can be viewed or downloaded as a PDF here.