'Tourist tax' anger of York hoteliers (From York Press)

'Tourist tax' anger of York hoteliers

8:01am Wednesday 15th February 2012 in News By Mark Stead, mark.stead@thepress.co.uk

A NATIONAL hoteliers’ group has attacked suggestions that York could get a “tourist tax” which would charge visitors up to £1 a night to stay in the city – branding it “discriminatory and extremely damaging”.

The Press revealed last week that the Fairness Commission, set up by City of York Council to allow residents to have their say on the future of the city, had recommended the levy as a way of providing extra cash for promoting York as a tourist destination.

The Commission’s interim report was last night going before the authority’s cabinet for discussion, with officers having said the idea could be looked into as long as it did not put off visitors or undermine the city’s tourism sector, while they could also examine potential alternatives. But the York Hoteliers Association has attacked the idea and vowed to oppose it, saying it would create the risk of tourists turning their backs on York and damage their businesses,.

Simon Kershaw, who chairs the northern region committee of the British Hospitality Association and runs the Best Western Willerby Manor Hotel in Hull, has also called for it be dropped.

Mr Kershaw said the hotel industry was already struggling with a 20 per cent VAT “burden” which made the UK “uncompetitive” compared to other European countries.

He said: “A bed tax would only exacerbate that position and now is not the time to increase costs in Britain.

“As there is no statutory register of hotels and guest houses, the council will not know who to tax and who not to tax, and what will be the cost of collecting the tax from a large number of very small bed-and-breakfast operators?”

He warned Government approval would be needed for a tourist levy and it had been dismissed in 2006.

He said: “A bed tax in York would hugely disadvantage hoteliers because it would drive potential visitors to stay in nearby towns, only for them to make a day trip to York, and who would gain from that?”

Tourism body Visit York has also said the tourist tax idea would need careful consideration and York must be able to compete equally with rival destinations.

Meanwhile, council leader James Alexander has written to Chancellor George Osborne calling for the Government to temporarily reduce VAT on hotel stays during this year’s Olympics in London, saying it would boost York’s tourism industry.