EXCLUSIVE: A Whitby BnB owner has spoken out against a potential Tourist Tax, which would put “huge pressure” on his family-run businesses
BnB owner Greig Cowie is furious at Labour for giving Mayors the power to bring in a Tourist Tax (Image: Andy Commins)
A hotel owner has hit out at Labour for putting his small business at risk, and admits he regrets voting for them in the general election.
Greig Cowie and his wife Laura have run The Hillcrest, a popular Bed and Breakfast in Whitby, for four years. Greig voted Labour in 2024, but is now speaking out against Rachel Reeves’ Budget.
Greig told The Daily Express he was “furious” at the decision to give regional Mayors new powers to introduce tourist taxes, and that the move could drive honest, family-run small BnBs out of business and push tourists away from Northern coastal resorts like Whitby.
A tourist tax in Whitby could see visitors staying overnight in hotels, B&Bs, and holiday lets charged £2 on top of their stay.
“On what planet is this a good idea? Small businesses are already being pinched!” Greig said. He explained that he could be forced to increase the price of rooms at Hillcrest to include the tax, which would drive away tourists at a time when small BnBs are struggling.
“I’m not sure we can justify increasing our prices […] if people have the option between two equally prices rooms in different towns, and one has a tourist tax on top, I think they’ll go for the cheaper option. It would place huge pressure on businesses like mine.”
David Weston, Chair of the UK’s Bed and Breakfast Association, told The Express that the UK’s 20% VAT was “twice the level in many competitive countries” and “already damaging our visitor economy”.
“Any new tourism taxes would be hugely damaging,” Weston added. The alternative to higher room prices would be for visitors to be charged upon arrival at their BnB, and Greig warned that this risks exposing the Hillcrest to poor reviews from frustrated patrons: “Most people turn up looking for a pool or sauna – they have no idea what we do.
“I imagine lots of visitors would be surprised by an extra charge – this leaves us open to negative reviews for something out of our control.”
Some businesses cannot afford price hikes, Greig warned (Image: Andy Commins)
Greig says small businesses are already “pinched” enough (Image: Andy Commins)
Greig also feels that any tourist tax would be “unfair” on honest businesses in Whitby.
He said: “We are a VAT registered business, but there are a lot of BnBs not declaring their taxes, and taking cash.
“This means there will be an awful lot of people who will get around paying the tourist tax – so there are a holes in [Labour’s] plan.”
Greig explained that BnBs and boutique hotels change their prices throughout the year according to demand: “Prices come down in quiet times, and there is a limit to what you can charge […] but the tax will still be the same.”
This means that honest, VAT-paying local BnBs will struggle to match their prices with tax-dodging businesses.
Greig is sceptical about how a levy on tourism would give back to Whitby (Image: Andy Commins)
North Yorkshire Mayor David Skaith supports a tourist tax, arguing the money could be used to help the North’s most deprived areas.
“Will it be distributed in our area – probably not” Greig said, adding that he was skeptical of levies on local businesses after the Yorkshire Coast Business Improvement District fiasco.
Yorkshire Coast Business Improvement District, known as BID, was set up in 2018 to promote businesses on the Yorkshire Coast, and asked businesses to cough up 1.5% of their property’s value. BID was disbanded last year by its own members after councillors and campaigners said it was “not fit for purpose”, and had failed to meaningfully give back to local communities.
A consultation for a Mayor-controlled tourist tax is open until February 18.
