HAY RESPONDS TO LATEST VISITOR LEVY ANNOUNCEMENT

Hospitality Association York responds to latest Visitor Levy announcement

The Hospitality Association York is disappointed by the continued lack of meaningful engagement from the Mayor’s Office with the hospitality sector over a potential Visitor Levy.

The recent Government announcement has provided some clarity around the rules for collecting a visitor levy. It has confirmed that any levy introduced in England would be calculated as a percentage of accommodation costs, with the rate decided locally and no national cap. However, the ultimate decision on whether to introduce a levy, and at what percentage, still rests with local mayors and strategic authorities.

David Skaith’s comment following the announcement that “No decision will be made without a full public consultation and more engagement with the hospitality and tourism sector” is difficult to believe when there has been little to no communication with HAY throughout the process so far. As the businesses that would ultimately collect and pay the levy, we have tried to raise our concerns with the Mayor, but despite our efforts, the Mayor’s Office has yet to share the findings of the survey he commissioned with HAY members.

One of our biggest concerns is whether the levy would be fair. York’s latest STEAM figures show 8.88 million visitors in 2025, including 7.01 million day visitors and 1.87 million overnight visitors. This means around four in five visitors would not pay an overnight levy. There is also a concern around the term ‘Visitor Levy’, which suggests a charge aimed at people visiting from outside the area, or even from outside the country. The levy would apply to anyone staying in paid accommodation, regardless of where they live, including local people staying overnight in York. Overseas visitors made up just 14% of York’s total visitors in 2024, meaning the vast majority came from within the UK.

Hospitality businesses are already facing significant increases in food, energy, employment and taxation costs. Adding another financial and administrative burden risks making overnight stays less attractive, with any reduction in visitors affecting restaurants, pubs, attractions, independent businesses and local suppliers across the wider economy.

We also question the need to raise additional revenue when York businesses already contribute significantly through the York BID, funding additional services and improvements to the city centre alongside the council’s own responsibilities. With ongoing concerns around the cost and delivery of major council projects, there must be confidence that existing public money is being managed effectively before asking businesses and visitors to contribute more.

There is also a question over where the money raised would go. York is the region’s largest visitor destination and would be expected to generate a significant proportion of any levy revenue, yet the Mayor has indicated that the money would go into a wider York and North Yorkshire pot to be distributed across the county. We want to see clear and transparent evidence that the areas generating the revenue would receive a fair and proportionate benefit.

Devolution was meant to make things easier and bring decision-making closer to local communities, yet we now appear to have another layer of government and administration making things more complicated.

Having spoken to fellow hoteliers and hospitality businesses across North Yorkshire, we know these concerns are not unique to York. There is widespread apprehension about the potential impact of another charge on an industry already under considerable pressure.

We remain willing to engage constructively, but consultation must be meaningful and give the hospitality sector a genuine opportunity to influence what happens next. If a levy is to be introduced, there must be robust evidence of its economic impact, a clear plan for the use of any revenue and proper engagement with the businesses expected to administer the scheme.