York councillors back calls to explore city ‘tourist tax’ options

Councillors in York have backed calls to explore how charges on visitor stays could be introduced in the city.

A motion was approved on Thursday instructing the Labour-controlled authority’s executive to investigate different ways a visitor levy, dubbed a tourist tax, could work.

Backers say it would help to pay for York’s upkeep and could be invested in its tourism offering, but those against it claim it could put visitors off.

Some hotels and others in the hospitality industry have also voiced concerns about how a charge would be collected and spent.

Councillor Conrad Whitcroft, who tabled the Labour motion, said the charge would stop residents having to pick up the tab for the cost of managing tourism.

“This isn’t a simple tax and spend solution, it’s about who we are as a city,” he said.

English councils do not currently have powers to introduce overnight stay charges like those levied in European cities, the Local Democracy Reporting Service said, but places such as Manchester have brought them in using legal workarounds.

Councillor Pete Kilbane, economy executive member, described the potential move as a “no-brainer” in December.

Speaking at the meeting on Thursday, he said: “We’ve been dealing with York BID and Hospitality Association York on this topic but it’s fair to say it’s been quite a sensitive issue that we’ve had to progress carefully with.”

He believed regional mayors would be the ones given the powers to introduce them, with York and North Yorkshire’s elected mayor backing the calls.

The idea for a tourist tax is based on charges which have been introduced in popular holiday destinations such as Barcelona, Porto and Prague.

Visitors are charged an additional fee on top of their hotel bills.

Councillor Chris Steward, Conservative group leader, said the levies would ultimately become more common in the UK, but York should be wary of being seen to “lead the charge”.

“There’s still questions about how it would work, whether it would be charged as a percentage, per room or outside the city centre or not,” he said.

The council’s Liberal Democrats called for some form of levy to be introduced by 2027.

“It’s the right time to introduce a charge that would allow the sector to invest in making improvements,” said councillor Ashley Mason.

“But it must be accompanied by proper consultation.”