AIRBNB properties and short-term holiday lets should not escape a proposed visitor levy for York and North Yorkshire, councillors have warned.
David Skaith, the elected Mayor of York and North Yorkshire, has promised that he will not introduce an overnight visitor levy unless it applies across the accommodation sector.
The issue emerged during a debate on plans for the so-called tourism tax at a meeting of the Scarborough and Whitby Area Committee last week, where concerns were raised that hotels and guesthouses could be placed at a competitive disadvantage if short-term holiday lets were excluded.
Whitby councillor Neil Swannick said any levy must apply equally to all forms of visitor accommodation.
He told the meeting:
“I think it would be absolutely disgraceful if this tax were to be imposed on hotels, but not on the airbnbs and holiday lets.”
Referring to the growth of short-term holiday accommodation, he added:
“It’s businesses moving into the area, gutting properties, maximising the number of units of the big houses in order to get the biggest income from them.”
In response, York and North Yorkshire Mayor David Skaith said a levy would only be introduced if Airbnb-style accommodation was included.
He said:
“I won’t introduce it if it doesn’t touch Airbnb.”
The Labour mayor said discussions were continuing with Government over how a levy could operate in practice and which types of accommodation would ultimately be covered by national legislation.
Under devolution plans, mayors will be able to introduce a charge on overnight stays, with Labour mayors proposing a levy of up to five per cent of accommodation costs.
Supporters argue the levy could generate millions of pounds for investment in transport, tourism infrastructure and regeneration projects. However, concerns remain among tourism businesses and some local politicians about the impact an additional charge could have on visitor numbers and on the hospitality industry on the North Yorkshire coast.
Mr Skaith told councillors that any future scheme could help fund improvements communities had repeatedly requested.
He said:
“We want to see improved transport, we want to see our high streets regenerated and all these kinds of things.
“We’ve got an opportunity to collect a very small amount of money per night to have a large amount of money that we can put into the region and invest in places like Scarborough, Whitby and Filey.”
Scarborough and Whitby MP Alison Hume recently convened a roundtable discussion with tourism businesses and hospitality representatives to discuss the proposal.
After the meeting, she said participants were worried about how a levy could affect businesses already facing rising costs.
Ms Hume said:
“The overwhelming view was that introducing a levy on stays in our coastal communities during a cost of living crisis and at a time when businesses are under pressure from changing visitor behaviours, high utility bills, staff costs and VAT at twenty per cent, this levy could potentially be the straw that breaks the camel’s back.”
The MP added that businesses wanted “real and quantifiable answers” about how a levy would operate and whether its benefits would outweigh the costs.
Whitby councillor Phil Trumper was also critical of the proposal and told the committee: “It’s just another tax, in my opinion.”
He added:
“It will create unemployment in towns like Whitby.”
Others were more supportive, provided the burden was shared across the sector and revenues were reinvested locally.
Questions remain over how any levy would be collected from Airbnb hosts, holiday cottages, hotels and guesthouses, and whether exceptions would apply.
It comes as the Government is preparing to introduce a mandatory national register for short-term holiday lets and Airbnb-style accommodation from March 2027.
No decision has been taken on whether a visitor levy will be introduced in York and North Yorkshire, with further consultation expected before any final proposals are brought forward.
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