Residents Response in Shaping a York Tourism Levy

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Good Organisation hosted an open forum on 22nd January 2025 inviting residents to shape how a Toursim Levy could support community priorities.

Background

Good Organisation conducted research with York residents to understand tourism’s impact and explore opportunities for community wealth-building through tourism. This research included a survey, two community conversations, and an analysis of industry reports on sustainable and community-led tourism.

The final report produced in July 2024, recommended exploring a tourism tax due to concerns about tourists using community resources without financial contribution. Since the UK currently lacks legislation for tourism taxes, any initiative would begin as a voluntary levy. While the UK Government stated in September 2023 that it had no plans for a tourism tax, developments such as Manchester exploring taxation may pave the way for change.

Good Organisation was aware that Ian Floyd, Chief Operating Officer at the City of York Council expressed interest in a voluntary levy in early 2023, pending observations of its implementation in Liverpool and Manchester. At the Tourism Advisory Board (TAB) meeting in December 2024, Cllr. Pete Kilbane announced that York Council would consult on a potential tourism levy, with the TAB contributing a proposal by early February 2025.

To build on previous research, Good Organisation hosted an open forum on January 22, 2025, inviting residents to shape how a proportion of the levy could support community priorities. Attendees included small business owners, a hotel manager, an environmental activist, a member of YOCO, heritage consultants, academics specialising in sustainable tourism, and public sector workers, all resident to York.

Participants were asked to discuss the following:

  1. Whether the identified community priorities were appropriate to address with a tourism levy.
  2. The governance and distribution of a proportion of the levy.
  3. How funding for residents’ priorities should be allocated.

Feedback from the Open Forum

General Agreement on a Levy with Conditions

Residents expressed broad support for a tourism levy if it directly benefits the local community. Key suggestions included using funds to mitigate tourism impacts, promote community wealth-building, and invest in cultural and community resources. Concerns were raised about the voluntary nature of the levy and its reliance on hotels’ goodwill, with many advocating its extension to platforms like AirBnB to ensure fairness and maximise impact. Though it’s understood applying the levy to AirBnB’s is not possible unless the tourism tax legislation is passed.

Allocation of Funds to Meet Residents’ Priorities

Resident Benefits and Heritage Support:
Participants emphasised the importance of using funds to enhance transport links, maintain heritage sites, create accessible community spaces, and support local artists and businesses. Protecting York’s heritage through initiatives such as museum repairs and improved exhibitions was a priority.

Balancing Tourism and Local Life:
Tourism’s impact has displaced residents from central areas, diminishing the city’s community feel. Residents advocated for “locals-first” spaces, community-focused events, and promoting sustainable, locally driven tourism over chain businesses and stag parties.

Improving Accessibility:
Suggestions included improving public transport to reduce isolation and encourage eco-friendly tourism practices, such as cycling.

Cultural Investment and Collaboration:
Residents called for investment in high-quality music, festivals, and inclusive activities. Existing organisations like York Civic Trust were identified as underutilised, with participants urging collaboration to enrich York’s community and heritage offerings.

Lessons from Other Cities:
Examples like Edinburgh and Stratford demonstrated how reinvesting tourism revenues into local communities can benefit residents. Fair B&B models, promoting circular economies and local involvement, were highlighted as alternatives to conventional accommodation platforms like AirBnB.

Challenges and Broader Goals

Tourist Perception and Economic Leakage:
Participants suggested tourists would accept a small levy if it were seamlessly integrated into pricing and clearly communicated. Residents stressed the importance of prioritising locally owned enterprises to prevent revenue loss to chain businesses and offshore entities.

Cultural and Environmental Strategies:
Proposals included promoting York as a “green city” with cycling routes, eco-friendly tourism initiatives, and policies to limit over-commodification, such as restricting new developments from becoming Airbnb’s.

Call for Unified Action:
Residents highlighted the interconnectedness of arts, culture, heritage, and community spaces, calling for a cohesive strategy that benefits locals and visitors alike.

Fund Governance

To facilitate discussions on fiscal hosting and distribution of the proposed levy, a 10% allocation for community priorities was suggested. Based on MP Rachael Maskell’s estimate that visitors could pay up to £2 per night, the levy could generate approximately £3.4 million annually, with £340,000 earmarked for community priorities.

While some participants viewed 10% as insufficient, others recommended starting with a higher allocation to ensure meaningful impact. Concerns about council mismanagement led to calls for independent governance, such as a dedicated board to oversee fund distribution.

Governance and Percentage Allocation:
The group suggested collaborating with York BID to secure the agreement of HAY, whose hotel sector members would collect the levy. While some funds might support street cleaning and public realm improvements, the consensus was that broader community priorities should be managed through The Two Ridings Foundation.

The ‘York Residents Know’, the volunteers involved in shaping York’s tourism strategy on behalf of residents would feed through emerging themes and shape funding priorities. 

Participatory Grants Board:
Residents proposed creating a participatory grants board comprising stakeholders from various sectors, including arts, culture, environment, small businesses, and the VCSE (voluntary, community, and social enterprise) sector.

The Two Ridings Foundation, experienced in fiscal hosting, grant administration, and participatory grant-making, was identified as a suitable partner. However, the foundation would require 10–15% of the funding to manage the grants effectively.

The potential funding could included priorities already touched upon through the manifesto, such as:

  • Organising a local artists evening fair or pop up exhibition in the market.
  • Subsidise access to York’s museums
  • Subsidise public transport
  • Promote community, not-for-profit and resident-led business through a creation of a map, identify public/cycles routes to the activities – especially businesses outside the city centre
  • Developing the Fair BnB platform
  • Provide small grants for community groups to hire spaces

Recommendations

Currently York’s tourism stakeholders are discussing both the prospects of a voluntary ‘accommodation levy’, potentially managed through the York BID, or wait to see if a Tourism Tax legislation is passed through government, which could provide Mayors to decide on how the tax is governed and distributed.

Our recommendation would remain the same for either outcome:

To allocate at least 10%, with consideration for a higher percentage, to support residents' priorities, ensuring meaningful community impact.

This allocation would equitably distribute the benefits of tourism, mitigate its social and environmental impacts, and strengthen York’s cultural fabric.  

Establish a participatory grants board, including stakeholders from the arts, cultural, environmental, small business, and VCSE sectors, to oversee transparent and accountable distribution of funds

Empower ‘York Residents Know’ (York's new Residents Tourism Forum) to engage with local residents' stakeholders and conduct annual consultations to define funding priorities in line with residents' needs

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