A review commissioned by York and North Yorkshire Mayor David Skaith has proposed introducing a £1 nightly charge for visitors. The Policy Lab report estimates that the scheme could generate around £26 million a year for the region, with the money potentially reserved for tourism-related investment.

The review also suggested exemptions for cheaper accommodation could be considered to avoid placing too much pressure on smaller businesses and campsites.

Skaith said a visitor levy could have a major impact on the region’s tourism sector.

Research examined for the report indicated that popular destinations such as Edinburgh, Manchester, Paris and Barcelona continued to experience tourism growth after introducing visitor charges. Different approaches were found capable of generating significant amounts of revenue.

However, the report acknowledged that introducing the levy would involve difficult choices, particularly around fairness, ease of use and the administrative work required to operate the system.

The review favoured a fixed £1 charge over a percentage-based fee because it would be easier to understand and provide more predictable income. However, it noted that a flat charge could place a greater burden on people choosing lower-cost accommodation.

The report also recommended including a formal review process so the system could be assessed and adjusted over time.