A UK city that is immensely popular among tourists all over the world is all set to impose tourist tax and the decision has been termed as “potential threat” by a travel expert.

York, a culturally rich city in North Yorkshire, is now on the verge of introducing a tourist tax for those staying at accommodation in the city after it was visited by nine million people last year.

Councillor Pete Kilbane, of York City Council, recently said that a levy of £2.50 for each tourist could raise up to £5m-a-year based on York’s annual overnight stay figures of 1.7million, while the Labour-run council is reportedly in talks with the hospitality industry for introducing the European-style small nightly charge.

Tourist tax generated is typically used to support local infrastructure, maintain tourist attractions, and promote sustainable tourism.

But experts have warned that the move could actually deter tourists from visiting the city, especially popular at this time of year due to its Christmas markets.

Andrew Pawson, acting CEO of Continuum Attractions, told the Express: “York is thriving with domestic and international visitors flocking to the city, especially at this time of year. The city is enjoying a period of sustained interest thanks to its rich culture, historic sites and varied attractions ensuring visitors have so much to explore.

“However, the proposed visitor levy has the potential to bring about significant challenges to the tourism sector. Given the current economic challenges and the pressures on people’s pockets, we are deeply concerned that this boom could be put at risk by imposing additional taxes, which make an affordable, family day out just that little bit more expensive and highlight York as a place erecting barriers to tourism.

“The popularity of this corner of the world never ceases to amaze me, so why do anything to put this at risk?

“Tourism is a vital economic driver for the city, supporting thousands of jobs and contributing significantly to the local economy. Any reduction in visitor numbers could have a cascading effect on restaurants, attractions and other businesses.”

Mr Pawson urged the council to look for an option that “works for everyone” and “give re-assurances that any proposed taxes are ringfenced for re-investment in the tourism infrastructure.”

Recently, Councillor Kilbane’s comment left everyone in shock after he said that the tourism tax is a “no-brainer”.

He said: “The way any money would be spent would be legally in the gift of a new BID, but as a council we’d want to see that money spent on places like Haxby and Acomb too,” he told councillors.

“A tourism levy is a no-brainer, a lot of the posh hotels say their customers wouldn’t think twice about it and some are surprised there isn’t already one.

“The question is how we do it, if the hospitality industry is interested in doing it voluntarily then we’re open to that but they seem to have pulled away from it.

“So we will continue to lobby the Government to give us powers to introduce a levy by right so that we can decide where the money’s spent.”