B&B boss fears 'uneven playing field' over tourist tax

A Scarborough bed and breakfast proprietor is concerned that the introduction of a "tourist tax" in North Yorkshire, without a similar levy in neighboring East Yorkshire, would create an "uneven playing field" for businesses like his.

A public consultation on the proposed visitor levy concluded in February, with new legislation anticipated later this year.

James Rusden, who operates Toulson Court B&B in Scarborough, argued that if the levy isn't implemented across all of England, the current cost-of-living crisis would prompt some tourists to choose destinations where no such tax is applied.

A government spokesperson stated, "We're listening to businesses in Yorkshire and across the country on this so we make sure money raised is invested in local priorities."

Rusden characterized the levy as "a form of taxation," asserting, "Nobody likes an extra cost and people will complain about it." He added, "But if it was an even playing field it would be a lot better as it would be easier to manage and control."

He elaborated on the potential impact: "People are short of money. To put a tax on them coming on holiday makes them think twice about where they go. If someone is coming to Scarborough but has to pay a levy each night, but can go to Bridlington where there's no levy, then that's where they'll go. It's unfair and it'll make it harder for us to compete."

Rusden also expressed apprehension about the timing of the levy's introduction, given ongoing struggles with the cost of living and impending increases in energy bills. He noted that a record-breaking season at Scarborough's Open Air Theatre, with numerous sold-out performances, had been crucial in sustaining some North Bay B&Bs this year.

"We have a fantastic reputation and have won some good awards," Rusden said. "But we've discussed whether one of us has to go out and get a job to make up the difference and run the business differently. People used to come for four or five nights, they're now knocking a night off. They just can't afford it."

David Skaith, the elected Labour mayor for York and North Yorkshire, believes a visitor levy "could be a total game-changer for us." He explained, "York and North Yorkshire is beautiful, with something for everyone. Millions of people visit every year. Our visitor levy report was commissioned to understand the drawbacks and opportunities of the levy. We are taking time to review the feedback before we take our next steps."

Conversely, Luke Campbell, the Reform UK mayor for Hull and East Yorkshire, has previously indicated that a levy would "not be the right approach" for his region.

Professor Brendan Paddison, Dean of York St John University's business school and chair of the York Tourism Advisory Board, highlighted university research indicating the necessity of involving the tourism industry in "decision-making and governance processes" concerning any proposed visitor levy. Paddison added, "It also found a need that some of that funding that is perhaps raised through a levy is ring-fenced to support the industry and the work it does."

In Scarborough's North Bay, Phil and Carol Smith, visiting from Derbyshire with their border terrier Logan, stated they would continue to visit the resort even if a tourism levy were implemented. Phil, who married Carol in Scarborough and visits at least three times annually, considers the town their "second home." He believes a £1 to £2 per night levy wouldn't deter them. "I'd rather not pay it, but that's nothing. A pint of Guinness is almost six quid, what's a pound? We feel comfortable here, everyone's so friendly."

However, both Phil and Carol questioned how and where the funds would be invested, suggesting, for instance, that Scarborough needs more public toilets. Carol remarked, "It's a busy town. Some more places to sit, and especially some more public toilets, would be money well spent."

Meanwhile, Charlie Highnett, an East Yorkshire resident, indicated he would seek cheaper accommodation in North Yorkshire to offset any levy costs. "We really like coming to Scarborough, but it would be disappointing to pay any extra," he said. "People want to come here and enjoy their holidays. I don't think any additional tax is needed, but if it is introduced it should be unified - not just one county." He also called for "some alignment and joint decisions made."

Rod Fretwell, visiting Scarborough from Bolton, expressed support for a nationally implemented levy. "But if it singles out some businesses, like hotels and bed and breakfasts, and doesn't cover others, and it's not national - so you can go down the road and they don't charge it - then it shouldn't be done," he asserted.

Paddison noted that the North Yorkshire consultation findings would offer "key industry insights" into the implications of any introduced levy. He added, "There will also be learning from other countries and other areas in Europe that have a levy and the impact it's had - not just in terms of visitor numbers and the revenue generated, but how that money's spent."

Skaith emphasized, "We must get this right, because if we do, we can invest in what makes our county a fantastic place to live and visit like never before."

The government spokesperson reiterated that ministers are "delivering the biggest transfer of power, funding and responsibility from Westminster in a generation." They added that mayors' new authority to introduce such a levy would ensure local communities "even more" from tourism, stating, "When places grow their economies, they keep more of the rewards and can invest in what matters most to their communities."