Mayor Tracy Brabin 'delighted' by new tourist tax powers as Leeds hospitality sector voices concerns
Leeds’ hospitality sector is cautious over the government’s new plans to allow local mayors to impose a tourist levy on overnight stays.
New government measures announced this week will let regional mayors in England introduce a tourist tax on hotels - a move West Yorkshire Mayor Tracy Brabin says she is ‘delighted’ to welcome.
According to Secretary of Housing Steve Reed, the move will put local leaders “on equal footing” with top tourist destinations around the world, including Paris, New York, and Milan, where similar tourist taxes already exist.
He said: “Tourists travel from near and far to visit England’s brilliant cities and regions.
“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
The money raised through the levy could help fund local projects, improve communities, and enhance tourists’ experiences, the government added.
Mayor of West Yorkshire Tracy Brabin said: "I'm delighted the government has heard the strong case Mayors have made for the power to ask visitors to pay a small fee to help drive growth.
“This will allow us to invest more into making our regions even better places to visit, unlocking opportunities and help our businesses thrive.
"This is a further vote of confidence in devolution and shows the government is backing mayors to achieve our ambitions."
However, within the industry, there are hits of concern on the potential impact a levy could have on local hospitality businesses.
High Streets UK, the representative body for flagship high street destinations across the UK, has called for businesses to be given a voice in overnight levy discussions or risk “unintended consequences” for the sector.
Andrew Cooper, Chief Executive of Leeds Business Improvement District, said: “We know the important role that sustainable tourism can play in driving growth for the UK economy.
“If properly managed, a proportionate overnight visitor levy could provide funds to invest in our high streets, create jobs, and improve tourism infrastructure. But revenues must be ringfenced, visible and managed locally - strengthening, rather than undermining local tourism.
“Business Improvement Districts, as place-focused organisations, are in 345 locations in the UK, and LeedsBID is the largest multi-sector Business Improvement District outside of London, representing over 1,000 businesses.
“Using these well-established conduits of consultation and delivery will be vital in any future mechanism that invests in the growth of tourism and supports the growth of the city of Leeds.”