No tourist tax exemption for Airbnbs, says mayor

The mayor of York and North Yorkshire has promised he would not introduce an overnight visitor levy unless it applied to the entire accommodation sector.

Regional mayors in England are set to gain powers to impose what has been dubbed a "tourist tax" as a percentage of the cost of hotels, bed and breakfasts and other types of accommodation.

During a meeting last week, Whitby councillor Neil Swannick said it would be "disgraceful" if Airbnbs and holiday lets were exempt.

The region's mayor, David Skaith, agreed, telling him: "I won't introduce it if it doesn't touch Airbnb."

The idea was first raised under former Prime Minister Sir Keir Starmer in November and is similar to schemes running in Scotland and European destinations.

Skaith said discussions were continuing with the government about how a levy could operate in practice, the Local Democray Reporting Service reports.

No decision has yet been made on whether to introduce a visitor levy in York and North Yorkshire, with further consultation expected before any final proposals are brought forward.

A report previously recommended imposing a £1 per night tourist tax over a percentage-based model due to its simplicity and predictable revenue.

It said potential exemptions could be made for low-cost stays to reduce the burden on small operators and campsites.

Swannick said the levy must apply equally to all forms of visitor accommodation.

"I think it would be absolutely disgraceful if this tax were to be imposed on hotels, but not on the Airbnbs and holiday lets," he said.

Skaith told councillors the scheme could help fund improvements communities had repeatedly requested.

"We want to see improved transport, we want to see our high streets regenerated and all these kinds of things," he said.

"We've got an opportunity to collect a very small amount of money per night to have a large amount of money that we can put into the region and invest in places like Scarborough, Whitby and Filey."

Alison Hume, Labour MP for Scarborough and Whitby, said businesses wanted "real and quantifiable answers" about how a levy would operate and whether its benefits would outweigh the costs.

She said at a recent meeting: "The overwhelming view was that introducing a levy on stays in our coastal communities during a time of high utility bills, staff costs and VAT at 20%, this levy could potentially be the straw that breaks the camel's back."

Whitby councillor Phil Trumper was also critical of the proposal and said: "It's just another tax, in my opinion.

"It will create unemployment in towns like Whitby."

It comes as the government is preparing to introduce a mandatory national register for short-term holiday lets and Airbnb-style accommodation from March 2027.

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