‘Punters are skint’: North Yorkshire tourism firms fear visitor levy will hurt trade

North Yorkshire Council said many feared even a “modest” additional charge could discourage overnight stays or shorten trips, particularly among visitors and families who have tighter financial budgets. It comes as new analysis showed that spending on staycations at the seaside, countryside and in small towns fell by £1.8bn last year. Despite it being the hottest and sunniest year on record, spending at the seaside dropped by 28% in 2025, compared to 2022, the New Economics Foundation (NEF) said. One Scarborough accommodation provider told The Yorkshire Post: “Our punters are absolutely skint. By the time they’ve filled their shopping basket they have nothing left. "The sunshine and good weather helped turn what would have been a disastrous year into a bad year.” Destination management organisation Visit North Yorkshire, part of North Yorkshire Council, carried out a survey in December. It came after Chancellor Rachel Reeves unveiled plans for mayors to be given powers to introduce the levy on overnight stays in the November Budget. York and North Yorkshire's mayor David Skaith has claimed a levy would be “transformative for our region”. It followed research by York St John University which stated a £1-a-night visitor levy could make more than £26m a year across York and North Yorkshire, rising to more than £52m if the charge was set at £2. However the council’s survey shows a majority were against a visitor levy. Of the 277 responses from tourism businesses and organisations, 71 per cent voiced opposition. Just one in five (18 per cent) were in support while a further 11 per cent were neutral. Respondents were concerned about the increased administrative burden with several concerned that visitors may choose to go to areas without a levy. Councillor Mark Crane said the responses would be reflected in a letter to the Government. He said it was important to listen to businesses who are “already under extreme pressure from rising VAT, business rates, energy costs and wage increases”. He said: “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.” The analysis by NEF makes grim reading. It shows the number of nights people in the UK spent on staycations last year dropped by 14m (5%) and by a fifth since 2022. Dr Alex Chapman, senior economist at the NEF, said: “To see such a striking decline in domestic tourism despite the hottest and sunniest year on record is grim evidence of government policy failure. "Soaring costs on high streets, matched with huge tax reliefs for air travel, leads to an obvious conclusion: British households are shifting their spending to foreign high streets while ours decline. "Our historic seaside destinations, already among the most deprived communities in the country, are suffering the most.”