Experts Say Flat Rate Visitor Levy Offers Simplest Solution for North Yorkshire

A proposed flat-rate visitor levy of one pound per night could raise up to £26 million annually to support infrastructure and tourism across York and North Yorkshire.

Overnight accommodation costs would rise by a proposed one pound per night across York and North Yorkshire under plans for a new Visitor Levy in the region..

The flat-rate visitor levy is designed to generate up to £26 million annually. Coastal communities, including Scarborough, Whitby, and Filey, face distinct tourism pressures on their seafronts, car parks, and beach infrastructure. Supporters say the dedicated funding stream will help mitigate these impacts while supporting a regional visitor economy worth £6.2 billion that sustains 54,000 jobs.

A report looking at the ways the levy could be introduced has recommended a flat-rate model over percentage-based or tiered systems specifically to "protect small and independent operators from excessive administrative burdens".

The study says the region relies heavily on non-serviced accommodations, such as self-catering properties and smaller guesthouses, which would struggle with complex reporting requirements. A simple low-cost digital platform would be introduced to handle the fee collection.

The report commisionede by York and North Yorkshire May, David Skaith, was carried out by the York and North Yorkshire Policy Lab, Academic lead for the Policy Lab and Dean of York Business School at York St John University, Professor Brendan Paddison, explained the reasoning behind the proposed structure.

"So there's a number of ways in which you could collect a fee and there's a number of different models that's used across Europe in particular, that collecting a fee.

We focused on three. One of them being the flat rate model, because that's the simplest of the models exist. So that essentially applies a fixed charge per room per night.

All the models add levels of complexity which industry stakeholders are telling us they want to try and avoid.

There's around 21 million overnight stays in the York North Yorkshire region on an annual basis. We've taken that figure and we've applied a £1 per night per person charge, which generates approximately £21 million if you apply the flat rate model."

Alternative models were evaluated during the research phase, including those soon to be implemented in other parts of the United Kingdom. A percentage-based levy, similar to the five per cent charge planned for Edinburgh, was deemed too complex and likely to cause compliance issues for smaller businesses.

Professor Paddison detailed the comparative research undertaken by the Policy Lab.

"In Wales, they have a tiered flat rate model that applies different rates depending on accommodation type and that addresses some of those concerns around those different accommodation types and what they may charge, and we've model what that might look like for York and North Yorkshire as well.

There's also percentage-based models that apply a charge as a proportion of accommodation cost and that's a scheme that's been adopted in Edinburgh.

So what's it been interesting as part of our research it's that we've looked at schemes across Europe that are very well developed, but what we're seeing here in the UK are schemes that are taking different approaches, so it's giving us early insights into what the implications are for visitor behaviour for the operators and to collect that charge."

Exemptions for low-cost stays, such as basic campsites and youth hostels, are being considered to ensure the charge remains fair. The report notes that modest levies do not typically deter visitors in high-appeal destinations, with international locations like Paris and Barcelona maintaining steady visitor growth after introducing similar fees.

Essential services and public spaces will receive a significant portion of the generated revenue. The investment aims to balance the economic benefits of welcoming over 41 million annual visitors with the real-world strain placed on local communities.

National legislative frameworks enabling English mayors to introduce visitor levies are currently progressing through Parliament, with the English Devolution and Community Empowerment Bill currently in the House of Lords. The earliest implementation date for the North Yorkshire charge is expected to be between 2027 and 2028, providing a lead-in time of up to 18 months for businesses to adapt their accounting systems.

Mayor of York and North Yorkshire, David Skaith, commissioned the report and highlighted the necessity of the new funding mechanism.

"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. 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. We must get this right for our county so we can invest in our communities, and our hospitality and tourism businesses. That's why I'm committed to keep talking with the sector as the details come together."

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