MP calls for tourist tax funds to benefit towns like Harrogate and Knaresborough
Tom Gordon MP urges local reinvestment of potential tourist tax revenues
Tom Gordon, Liberal Democrat MP for Harrogate and Knaresborough, has spoken out about the importance of reinvesting the funds from a potential tourist tax in the towns where the money is generated.
Speaking in Parliament, Tom emphasised the key role tourism and hospitality play in the local economy. He noted that many hoteliers in Harrogate and Knaresborough had shown interest in the idea of a tourist tax prior to recent budget announcements, recognising the benefits funding could bring to local communities.
However, Tom voiced concerns about the possibility of funds being spent elsewhere in York and North Yorkshire. He warned that towns like Harrogate and Knaresborough risk being left short-changed if revenue from the tax is not ringfenced for their specific needs.
A call for local investment
Tom outlined that any money raised from a tourist tax should be invested back into local services, including improvements to transport links and infrastructure that tourism and hospitality in the area rely upon.
He said: “If the Mayor introduces a tourist tax in York and North Yorkshire, it is vital that hotels in Harrogate and Knaresborough see the benefits locally, not watch the funding disappear elsewhere.
“Local hoteliers have been exploring the idea of a tax, but they are clear that any money raised must be reinvested in the towns where it is generated.
“I’ll continue working closely with local businesses to ensure their views are heard and our towns get a fair deal.”
Research suggests a £2-a-night charge could raise up to £52.2 million-a-year.
More than 41.4 million people visited York and North Yorkshire in 2024 and 7.8m stayed overnight, according to combined authority figures.
Data showed tourism contributed an estimated £6.2 billion to the region’s economy in 2024.