'Real concern' in Harrogate's hospitality sector over plans for new tourist tax in North Yorkshire

The report commissioned by York and North Yorkshire Mayor David Skaith found that modest levies do not deter visitors to destinations that already have a high appeal, with visitor growth in places like Edinburgh, Manchester, Paris and Barcelona remaining steady following its implementation.

The report recommends the introduction of a simple low-cost digital platform with a flat £1 a night fee and potential exemptions for low-cost stays in a bid to reduce the burden on small operators and campsites.

But Martin Mann Chief Executive Harrogate District Chamber of Commerce, is among those in Harrogate’s business community with serious reservations about how a levy would work in practice and whether the revenue raised would help Harrogate’s crucial hospitality sector.

"Harrogate's hoteliers have already sent a clear signal on this earlier this year,” said Mr Mann.

"Fifteen hotels voted against Harrogate BID's proposed £2-a-night accommodation levy in February."

"The Chamber's position is that any levy needs to be developed with businesses, not announced to them.

"We want full engagement with Harrogate's accommodation providers on design, fairness between registered and unregistered operators, and how revenue is actually spent, before any model is settled on."

The report for York and North Yorkshire argues that a £1 a night Visitor Levy could raise up to £26 million for the region to invest back into its hospitality and tourism industry while making improvements to the infrastructure that both tourists and residents rely on.

It also recommends that a simple low-cost digital platform with a flat £1 a night fee and potential exemptions for low-cost stays in a bid to reduce the burden on small operators and campsites.

But Harrogate District Chamber of Commerce says this reassurance falls short of guaranteeing a level playing field for the town’s hotel trade.

"Registered hotels and B&Bs will be shouldering a cost that informal operators simply won't,” said Mr Mann.

"Airbnb and other informal short-let operators currently have no register, so there's no mechanism to bring them into the levy even in principle.

"A flat £1 a night isn't neutral in that world either, it's a much bigger proportion of the room rate at a budget hotel than a luxury one, so it falls hardest on the businesses with the thinnest margins."

As for comparisons to other tourist cities, Harrogate District Chamber of Commerce says they simply don’t stack up.

"Our sector pays 20% VAT in the UK, one of the highest rates in Europe, while hotels and restaurants in France, Spain and Italy pay 10% and in Germany just 7%,” said Mr Mann.

"Any comparison with Barcelona, Amsterdam or Paris introducing a visitor levy needs to be read alongside that. "Those businesses are absorbing a new levy on top of a much lighter core tax burden than ours. "Harrogate's hospitality sector would be taking this on from a considerably weaker starting position."

But David Skaith, Mayor of York and North Yorkshire, believes the Visitors Levy or Tourist Tax could be a “game changer.”

"Thriving communities and thriving destinations go hand in hand, but welcoming so many visitors puts pressure on the infrastructure and services our residents rely on,” said Mr Skaith.

“York and North Yorkshire has something for everyone. Millions visit every year, and that’s why a visitor levy could be a total game changer for us.

"We must get this right for our county so we can invest in our communities, and our hospitality and tourism businesses."