Detailed proposals to levy charges on overnight stays in York and North Yorkshire which could raise up to £52.2 million are being drawn up by a new combined authority body.

Proposals setting out how a visitor levy could work and how much it could raise is the first project set to be undertaken by the newly-established Policy Lab.

Professor Brendan Paddison, dean of York St John University’s York Business School, said a levy could fund infrastructure and environmental protection and ensure the benefits of tourism are shared fairly.

Labour York and North Yorkshire Mayor David Skaith said the new Policy Lab which is working on the proposals aimed to turn great ideas into action.

The launch of the unit by the York and North Yorkshire Combined Authority and York St John University comes as estimates showed £2-a-night charges could raise up to £52.2 million-a-year.  A visitor levy, or tourist tax, could raise up to £26.1 million-a-year based on early findings.

More than 41.4 million people visited York and North Yorkshire in 2024 and 7.8m stayed overnight, according to combined authority figures.
Data showed tourism contributed an estimated £6.2 billion to the region’s economy in 2024.

The Government has said it currently has no plans to introduce a tourism tax nationally.  But City of York Council councillors heard earlier this month that reforms currently making their way through Parliament would hand more powers to mayors could pave the way for a visitor levy locally.  Councillors have previously backed a call to introduce charges in York which supporters say could raise funds which would help manage the pressures of mass tourism.

But critics including hoteliers, the Hospitality Association York industry body and others fear it could put visitors off.
Prof Paddison told a launch event for the Policy Lab on Tuesday, November 18 that visitor levies were the first proposals being researched by the new body.  It is also set to look at tackling coastal deprivation, explore the possibility of securing devolved powers for rural issues and investigate a more local approach to business rates.

York Business School Dean Prof Paddison said: “We’re proud to be working in partnership on the new Policy Lab, which places robust, community-focused research at the heart of policy development.  By exploring the needs, priorities and lived experiences of local residents, we’re helping to shape evidence-led solutions.  With over 41 million visitors to York and North Yorkshire in 2024 and tourism contributing £6.2 billion to the local economy, there’s a clear opportunity to ensure that growth is sustainable and inclusive.”

Mr Skaith said the new unit was about practical change that could improve the lives of everyone in York and North Yorkshire.
The mayor said: “York and North Yorkshire is full of brilliant people, world-class ideas and real ambition.  The Policy Lab brings communities, universities and businesses together to spark new thinking, solve problems.”