MP Rachael Maskell has called for York to be given more powers to bring in a tourist tax, arguing it would rebalance the visitor economy.
The Labour MP for York Central says that without new legislation, the best that York could hope to earn from a voluntary tourism levy would be £124,000.
That’s because much of York’s accommodation falls outside of the city centre.
But a tax backed by a new law would bring in £3.4 million if tourists were charged £2 per overnight stay.
She said the money then could be “invested in tourism impact costs, invested in the city’s heritage, or to open up free entrance to visitor sites for local communities”.
Ms Maskell raised the issue at Prime Minister’s Questions yesterday, saying that York’s nine million visitors a year placed significant pressure on the city’s public services, and on housing with many homes converted for use as short-term holiday lets.
She asked the PM: “What steps will the Prime Minister take to equip local authorities to better balance the benefits of tourism with the additional costs to our communities?”
Keir Starmer replied that the government’s focus was “supporting industry, including by providing a 40% relief for retail, hospitality and leisure properties and permanently lowering their rates from next April”.
Rachael Maskell has now written to ministers including the Secretary of State for Culture Lisa Nandy to call for a tourism levy to be instituted.
She said: “A tourism levy would bring significant additional revenue into our city, and ensure that local residents see the benefit of tourism in our city.
“For far too long the balance between the visitor economy and local communities has been inequitable with local revenue having to be spent on additional public services and other amenities.
“The local tax is such a simple idea, one I have raised previously with Government, but now we have a Labour government which wants to devolve more decision making to local authorities while supporting communities, there is a great opportunity for a tourism levy to be introduced to benefit everyone in tourist destinations like York.
“I look forward to further engagement with the minister and city leaders on this issue.”
The deputy leader of Labour-run City of York Council, Cllr Pete Kilbane, has already said that a tourism tax ‘was a no-brainer‘, but questions remained over how to enact one.
However, many hospitality leaders are worried that such a levy would make York uncompetitive and might see tourists go elsewhere.