Chancellor Rachel Reeves has backed York and North Yorkshire Mayor David Skaith’s calls for the right to raise a levy which could raise more than £50 million a year.
He also welcomed other budget developments including a growth fund and permanently lower business rates on the high street.
The budget also revealed that former British Coal staff in North Yorkshire will get a boost to their pension and provided more support for small and medium businesses through free apprenticeships for under 25s.
David Skaith, Mayor of York and North Yorkshire, said:
“This was a bold, fair, and ambitious budget that cuts the cost of living.
“Two-child benefit cap, gone. Minimum wage, up. Energy bills, down. This will make a real difference to thousands of working families across York and North Yorkshire.
“Small and medium businesses across York and North Yorkshire will benefit from lower business rates and local growth funding.
“It also provides more than 600 former mine workers in Selby with a much-needed increase in their pension.”
Mayor David Skaith has been working with York St John University as part of a new Policy Lab to research the impact of a number of policy changes, including a visitor levy.
More than 41 million people visited the region last year and nearly 8 million people stayed overnight for at least one night.
The Combined Authority also identified the visitor economy as a key employment sector for the region, employing more than one in ten people in the region.
If visitors were charged £2 per night, the Policy Lab found that it would raise £52 million a year for the region.
The measure would bring the UK in line with other tourist destinations in Europe and the United States.
David Skaith, Mayor of York and North Yorkshire, added:
“A visitor levy in York and North Yorkshire will be a total gamechanger for our region. We’re home to beautiful towns, villages and cities.
“A small charge on overnight stays can revolutionise how we deliver transport, support businesses, invest in infrastructure and the visitor economy. Building the healthy and thriving communities for our residents and everyone that comes to visit them.
“We’ll make sure this is right for our region, I’m committed to working openly and transparently with the Government and local partners to make sure this works for York and North Yorkshire through a comprehensive consultation process.”
Alongside the Policy Lab, Mayor David Skaith will use his role as the chair of the Local Visitor Enterprise Partnership (LVEP) to bring the region’s tourism bodies, destinations and hotels into the conversation and ensure that the levy benefits the region’s businesses and communities.