Leeds, York, and West Yorkshire Join Forces to Roll Out Groundbreaking Tourist Tax Scheme – Everything Travelers Need to Know

Published on December 6, 2025

In a bold move that mirrors international cities like New York and Paris, Yorkshire mayors have welcomed the introduction of powers to impose a tourist tax on overnight visitors. As part of the UK government’s new measures, mayors can now charge tourists modest levies, depending on their region. This decision has sparked mixed reactions from both local officials and the hospitality sector, with some arguing that it will benefit the economy, while others warn of potential negative impacts on the visitor experience. Specifically, York, one of the UK’s top tourist destinations, has long advocated for such a levy, hoping it will support the region’s tourism infrastructure and create new opportunities for investment. However, local hotel owners have voiced concerns that the tax could lead to a drop in visitor numbers, especially with travelers already being sensitive to price hikes.

A Fresh Approach to Supporting Local Economies

The new legislation empowers regional mayors, such as David Skaith, the Mayor of York and North Yorkshire, and Tracy Brabin, the Mayor of West Yorkshire, to levy a small fee on overnight stays in their regions. Skaith has been one of the key advocates for this tourist tax, describing it as a “game changer” for the area. His strong backing is supported by academic research, which shows that even a modest tax could generate millions in additional revenue. Specifically, a £1 per night levy could bring in over £26 million annually for York and North Yorkshire, doubling that figure if the charge were increased to £2 per night.

For the city of York, which attracts around 41 million visitors annually, the impact could be transformative. The research conducted by York St John University suggests that the revenue generated could significantly improve the local transport system, support small businesses, and enhance the overall tourist experience. Moreover, funds could be reinvested into tourism infrastructure, ensuring that the region remains an attractive destination for future visitors.

Mixed Reactions from the Hospitality Sector

While many local politicians and tourism officials have expressed their support for the tourist tax, there is significant pushback from the hospitality sector. Hotel owners, in particular, are concerned that adding a visitor levy will further exacerbate the current economic challenges faced by the industry. Hoteliers argue that many visitors are price-sensitive, and any additional charge could discourage them from visiting the region. York’s Hospitality Association (HAY), for example, has voiced strong opposition, claiming that such taxes will hurt already struggling businesses.

Craig Dowie, the owner of a hotel in Doncaster, has raised concerns that this levy is yet another “tax” that businesses will be forced to absorb, ultimately passing the cost onto consumers. For hotels already dealing with a reduction in average daily rates, adding a visitor tax could make the city less competitive compared to other regions that do not impose such charges. Secondary spend, such as money spent in hotel restaurants and shops, has also seen a noticeable decline, which many argue could worsen if visitor fees are implemented.

The Global Context: How Other Cities Handle Visitor Levies

The concept of a tourist tax is not new, and many major cities around the world have successfully implemented such measures. In cities like New York, Paris, and Milan, tourists have long been charged small fees for overnight stays, with the money used to improve local infrastructure and enhance the visitor experience. The principle behind the levy is that it helps ensure that the revenue generated from tourism is reinvested into the local economy, benefiting both residents and visitors.

The UK government’s decision to empower local mayors with the ability to introduce such a tax follows similar patterns seen in other regions, where the focus is on devolution and local decision-making. Steve Reed, the Local Government Secretary, stated that this shift will allow local authorities to have more control over how funds are used, without needing central government approval. This marks a significant move towards more autonomous management of local tourism resources.

What Travelers Should Know

While the new tourist tax in Yorkshire is still in its early stages, visitors should be aware that it could impact their travel costs. The specific fee will vary depending on the area and could be adjusted based on local needs and conditions. For those planning a visit to York, Leeds, Bradford, or other cities in West and North Yorkshire, it is important to consider these additional costs when budgeting for a trip.

Here are a few tips for travelers:

• Check accommodation rates: Make sure to check with your hotel or accommodation provider to see if the tax is included in the advertised price or if it will be added at checkout.
• Consider local transportation: Funds raised from the levy are expected to support regional transport, so travelers may see improvements in local bus, train, and tram services.
• Research local attractions: The additional revenue could lead to better-maintained tourist sites, improved guides, and more services for visitors.

The Road Ahead: Benefits or Burdens?

While the introduction of a tourist tax in Yorkshire is still fresh news, it remains to be seen whether it will have the desired effect of supporting local economies without discouraging tourism. For mayors like David Skaith and Tracy Brabin, this tax represents a crucial tool for economic regeneration and ensuring that tourism continues to thrive. However, hoteliers and other members of the hospitality industry will be watching closely, as the potential impact on bookings and revenues could make or break the success of the initiative.

What’s clear is that Yorkshire’s move towards a tourist tax has the potential to set a precedent for other regions in the UK, as well as influencing future discussions on how to balance the needs of local communities with the demands of an ever-growing tourism industry.