YORK'S hotel industry is suffering from"cannibalisation" following an increased number of budget hotels according to a long awaited report into the city's accommodation offering.

Three years after hoteliers and councillors called for a hotel strategy to control the number of new hotels opening York, City of York Council has published a study into York's tourism accommodation.

The independent report, commissioned by the council as part of its ambition to double the value of tourism to £1 billion by 2023, calls for more "high quality" accommodation in York, stating the need to increase visitor spend rather than increase the volume of visitors.

Research in the report shows that while York "compares favourably" against other cities for occupation, with a rate of 77 per cent, its room rates are not as strong, standing a £66.58 and falling below Bath, Cambridge, Chester, Leeds and Oxford - all cities York topped for occupation.

The report states: "Other cities are attracting overnight visitors who are willing to pay more for accommodation and by inference contribute more economic value than those staying in York.

>>> Read the report in full here: York_Accommodation_Study_Report_v7.pdf 

"The higher occupancy levels in York suggests scope to expand supply. However, the tone and attitude of many hotel operators within the city did not reflect the positive optimistic outlook these occupancy levels might suggest.

"Visitor accommodation providers within York recognise that occupancy levels are high during the peak season, but are concerned about the impact of expanding the supply of bed stock if there is not a corresponding increase in demand, especially during quieter times.

"Even the most upbeat hoteliers who felt their product competes strongly in the current market place expressed concerns about adding too many additional hotels to the mix."

The report recommends that new developers approaching York need to be encouraged to create "high-end" properties as high value spenders demand high quality surroundings.

Accommodation providers and developers consulted as part of the report repeatedly identified too many budget hotels in the city.

The study said: "An increase in budget hotels will drive down room rates across the city.

"The increase in the number of budget hotels in recent years has resulted in a degree of cannibalisation, driving some B&Bs and guest-houses out of business."

Those consulted also criticised the ambience of York, noting the visible weekend hen and stag dos and a desire for an appealing twilight economy.

Some described the city as a "hen and stag paradise" with the city centre image being damaged by "falling over 35 extremely drunk women" on a Saturday afternoon.

After accommodation providers stated mid-week as their weakest demand, the report highlights business travellers and conferences as "the most lucrative sources of untapped market for York", but highlighted a need for larger business conference facilities, stating there was no reason why this could not be developed given good transport links.

The report said: "To achieve the strategic aim and attract higher spending visitors respondents had a long list of developments required to support any hotel expansion by stimulating demand to visit and stay.

"Suggestions regularly included improving the quality of the retail and restaurant offer in the city, significantly increasing the cultural offer, delivering quality festivals at off-peak periods, addressing the night-time economy and adding another new permanent attraction."