The mayor of York and North Yorkshire has said he would not introduce a proposed overnight visitor levy unless it also applied to Airbnb properties and other holiday lets.
The proposed levy is part of wider discussions in England over giving regional mayors powers to charge visitors a percentage of their accommodation costs. No final decision has been made on whether York and North Yorkshire will introduce the charge.
Airbnb and Holiday Lets Would Have to Be Included
During a recent meeting, Whitby councillor Neil Swannick argued that the levy should apply equally across the accommodation sector rather than placing the burden only on hotels and traditional bed-and-breakfast businesses.
Mayor David Skaith agreed with that position, saying he would not introduce the levy if Airbnb properties were excluded.
The proposal would potentially cover hotels, B&Bs, holiday lets and other forms of visitor accommodation. Discussions with the UK government are continuing over how such a system could work in practice.
For accommodation operators assessing the potential effect of changing local charges, Business Advisory can be relevant when evaluating regulatory costs and their wider impact on business planning.
No Final Decision on Visitor Levy
York and North Yorkshire has not yet decided whether to introduce a visitor levy. Further consultation is expected before any formal proposal is brought forward.
A previous report recommended a flat charge of £1 per night rather than a percentage-based tax, citing simplicity and greater predictability of revenue. It also suggested that lower-cost accommodation could potentially receive exemptions to reduce pressure on smaller operators and campsites.
The final structure, if introduced, could therefore differ from the options discussed so far.
Revenue Could Fund Local Improvements
Supporters of the proposal argue that even a relatively small charge per overnight stay could generate additional funding for local communities.
Mayor Skaith said potential revenue could contribute towards improvements to transport, high streets and other community infrastructure in destinations such as Scarborough, Whitby and Filey.
The proposal has nevertheless attracted criticism from some local businesses and councillors.
Businesses Raise Cost Concerns
Alison Hume, MP for Scarborough and Whitby, said businesses wanted clearer information about how the levy would operate and whether its benefits would outweigh additional costs.
She pointed to existing pressures from utility bills, staffing expenses and the 20% VAT rate, arguing that an additional accommodation charge could create further difficulties for coastal businesses.
Whitby councillor Phil Trumper also criticised the proposal, describing it as another tax and warning that it could potentially affect employment in the town.
These concerns highlight the broader debate over whether visitor levies can provide useful local revenue without placing excessive costs on tourism businesses.
Short-Term Rental Register Planned
The discussion comes as the UK government prepares to introduce a mandatory national registration system for short-term holiday lets and Airbnb-style accommodation from March 2027.
The registration system and any future visitor levy are separate policy measures, but together they could increase the regulatory requirements facing short-term accommodation providers.
For York and North Yorkshire, the immediate question remains whether a visitor levy will be introduced and, if so, whether all forms of visitor accommodation will be required to contribute.
No final decision has yet been announced.