YORK hospitality leaders claim a "bed tax" on more than 230 hotels, B&Bs, guesthouses and inns in the city could hit the local economy.

The York Hoteliers Group warned that the suggested tax of between five and ten per cent could "sound warning bells for the future of York".

Best Western Hotels, the Clifton Moor-based consortium of 245 hotels in England, has launched a full-scale effort to nip the idea in the bud.

The board of the York Tourism Bureau has condemned the effect such a tax would have on the long-stay visitors they are trying to encourage. The notion of taxing overnight stays will be investigated by Sir Michael Lyons, as part of his review of local government funding, which is likely to be put to ministers in December.

But June Nelsey, director of Best Western Monkbar Hotel in York and chairman of the York Hoteliers Group, representing prominent hotels with more than 3,000 bedrooms in the city, expressed "total objection".

She said: "The tourism industry in York underpins the local economy, and the effects of a bed tax could well sound warning bells for the future of the city."

David Clarke, chief executive of Best Western, whose York hotels also include the Kilima, York Pavilion and Dean Court, said every one per cent rise in hotel prices would lead to a 1.4 per cent fall in inbound visitor numbers, with a knock-on effect on local shops, restaurants and tourist attractions.

He urged "everyone involved in the tourism industry" to lobby against the proposed new tax.

Gillian Cruddas, chief executive of York Tourism Bureau, said: "Anything that deters the staying visitor and makes us less competitive with our short-stay rivals like Budapest, Prague and Barcelona, has to be a bad thing."

Janet Robinson, who runs the Manor Guesthouse in Linton-on-Ouse with her husband, Keith, said: "We have spent thousands of pounds upgrading our eight rooms. A tax like that would hit us very hard."

Peggy Swan, who offers bed and breakfast at South Newlands Farm, Riccall, said: "I already pay council tax, and on top of that business rates. A third tax would make me think very hard about continuing."

Updated: 08:47 Thursday, May 25, 2006