Tourism delivers undeniable benefits. Visitors to our own city of York spent £1.2 billion in 2022 alone, helping to support 17,000 jobs. 

But this can create challenges. York is a small, medieval city with a population numbering a little more than 200,000. Yet it welcomed 8.9 million tourists in 2022. Such a large influx of visitors can sometimes cause residents to voice concerns about the impact on the city as a place to live.

What exactly is over-tourism and how does it impact other destinations? Is it possible to shape a tourism policy that allows residents and visitors to co-exist in harmony? And is a tourism tax part of the solution?  

Our mission: to do a deep-dive into the issue, find some answers and hope they are useful in shaping a sustainable solution that works for everyone – businesses, residents and policymakers. 

What is over-tourism?

Over-tourism occurs when destinations experience an unsustainable number of visitors, leading to overcrowding, a strain on local services and environmental degradation. 

Popular tourist destinations across the world have attempted to tackle the issue head on. Large cruise ships were banned from the Giudecca Canal in Venice in 2021 after protests from residents. In 2023, Amsterdam introduced a campaign aimed at discouraging tourists due to antisocial behaviour. 

York has yet to take similar action, even though residents have voiced concerns about overcrowding. Qa’s own research over the years has revealed the tensions wrought by the impact of tourism in the city – with some local families choosing to avoid the centre on Saturdays for fear of running into groups of stags and hens. 

Aware of these feelings, the city council has stated that they want to “reduce some of the negative impacts of tourism”.  

So how does a place like York address these challenges without damaging the economic benefits on which the city relies? 

The tourist tax: a sustainable solution? 

Implementing a tourist tax is often touted as a solution to over-tourism. The tax has been introduced in popular European destinations, including Rome, Barcelona and the Canary Islands.  

In the UK, Manchester became the first city to impose a tourist tax in early 2023. Other destinations are contemplating the idea. 

Tourist taxes are collected from overnight visitors. Hotels and other accommodation providers charge visitors an additional fee. The money is spent on things like cultural and environmental preservation, street cleaning, enhanced local infrastructure, and events.  

The costs that tourists incur are typically small. In Manchester, accommodation providers charge visitors an extra £1 per room per night. 

In theory, tourist taxes seek to encourage sustainable tourism by taking some of the tax burden from residents and re-investing the proceeds to help make the destination a better place to live, work and visit.

How could research contribute to the debate?

To help inform the debate we wanted to find out the extent to which a tourist tax could work in York. To do that, we set out to answer two main questions. Firstly, what do businesses that rely on tourism think about the idea? And, secondly, could a tourist tax foster a more harmonious relationship between visitors and residents? 

The hospitality sector’s view

As part of our research, we talked to representatives of the hospitality sector in York. They voiced concerns that a tourist tax might deter visitors.  

Tourism is a competitive industry. There are fears that the extra cost might persuade potential visitors to choose an alternative destination that has no such scheme. As things stand, that includes most of the rest of the UK. 

Another concern from the hospitality sector is how and where the tourist tax revenues would be spent. Who would oversee the collection and distribution of the money? How would the investment schemes be chosen? Might it be siphoned off to help cash-strapped councils meet their deficits, rather than being spent on schemes that overtly benefit the tourism industry? 

That said, our research found that the hospitality sector is not implacably opposed to the idea, and is more open to a mechanism which would bring together the various stakeholders – hoteliers collecting the levy, the destination management team and the local authority – to manage a tourist tax.

That would allow for a collective approach to setting and spending the tax. It could also incorporate a strategy to analyse the effectiveness of the investment and measure any improvements that were introduced.  

And such a body could actively promote a more harmonious relationship between the tourism industry and York residents.  

• Read part two here: Over-tourism: What do residents and holidaymakers think of a tourist tax?
• Read part three here: Over-tourism: Could a tourist tax create harmony between residents and visitors?
  
• For more information about Qa Research’s work in tourism, contact Richard Bryan, Managing Director, at richard.bryan@qaresearch.co.uk and 01904 6320394

In our previous article, we outlined the scale of the pressure and impact that can be caused by debt – and noted that the ongoing cost of living crisis means this has the potential to get worse before it gets better.

We explored the impact on people struggling to cope with spiralling bills, and the ways that organisations, often inadvertently, can sometimes make things worse.

Now we want to look at strategies that will make a positive difference. From our years of in-depth research across an array of sectors, including water, energy, transport and the NHS, we know there are ways to engage with and support people in financial straits which work – both for the individual and the organisation.

And it begins with compassion.

Empathy is key

An understanding, compassionate approach is the bedrock of positive engagement. And positive engagement leads to positive outcomes.

Financial hardship is hugely stressful. The cost of living crisis means many previously ‘comfortable’ households now have to choose between heating and eating.

When our researchers talk to people who have been in this debilitating situation, they tell us: ‘We just want them to listen and understand’.

Organisations that do both, do better.

Give customers back control

People who see their debts mount suffer acute stress – caused largely by a sense of losing control. Fear, guilt, panic and anxiety can quickly follow. People often feel a sense of shame too. There’s a stigma associated with money troubles.

One interviewee told us: ‘Debt – it kills your spirit.’

If you can help them regain that sense of control, you will change your customers’ perspective, minimise any feelings of shame and improve their mental wellbeing.

The first step is to allay their fears. Assure them that no negative consequences are imminent, such as cutting off supplies, sending in bailiffs or taking legal action.

Once they are reassured on that point, you can begin to work with them on a plan to resolve the crisis.

This could be a debt holiday, a discounted bill, a payment plan or similar. Something that will simultaneously relieve the pressure and give them back some sense of control.

In an instant, what seemed to be a financial dead end can be opened up. The customer can look to the future with confidence rather than dread.

Keep in touch – the right way

Keeping in contact is critical, of course – but the style of communication is equally important. All communications with the customer should be support-based and non-threatening.

Always keep in mind that this is not a one-size-fits-all situation. Every customer is different and dealing with unique circumstances, so communications should be personal to them. Agree a communications plan that they are happy with – including the type of communication and how often the contact should be made – and stick to it.

And after the initial way forward has been agreed, don’t disappear into radio silence. Check in on them. Is everything OK? How can we help?

Don’t always depend on digital

The move towards digital communications was accelerated by the Covid pandemic. Increasingly, organisations rely on emails, messages, websites and apps to keep in touch.

But not everyone is comfortable in the digital world.

For those who aren’t, ensure there are other channels available. Make it easy to find your phone number and postal address, as there are still plenty of people who prefer printed letters.

By making communications as comfortable and convenient as possible for each individual customer, you are much more likely to keep them engaged.

And go the extra mile. Many people struggle with form filling, particularly when it comes to financial affairs. Offer to talk them through it, or put them in touch with support agencies such as Citizens Advice who provide a range of services for free.

Keep expectations real

People get used to discounted bills or payment holidays, and can sometimes react badly when they end. So always be clear about the timetable being set up, and be open about when payments are set to increase again. Check in along the way to ensure they are still happy with the plan and the timetable.

Our research shows that most people react negatively to short-term ‘sticking plaster’ solutions. Work with them on a longer-term plan.

And remember their circumstances can change for the better or worse, so be ready to be flexible.

Conclusion

The successful strategy to help people struggling to pay their bills should…

• Involve listening at all times
• Show appreciation that everyone’s circumstances are different
• Develop communications and payment plans tailored to each customer
• Take a medium to long-term approach
• Be understanding, realistic and flexible.

Our research shows organisations that adopt this style of open, compassionate approach are seen as the most helpful and supportive, develop stronger customer relations and garner the most positive feedback. And that ultimately results in successful plans to pay down debts and prevent future debt.

To put it in a nutshell, your ultimate aim – as one Qa interviewee told us – is to give customers ‘one less thing to worry about’.

See also our first blog on steps to avoid when your customers struggle to pay their bills

If you would like to know more our research with those experiencing debt and financial difficulty, contact georgina.culliford@qaresearch.co.uk

The cost of living crisis is pushing more people to the financial limit. It is affecting millions, from traditionally vulnerable low income households to families who were previously considered to be ‘comfortable’.

Key triggers include: huge hikes in energy prices, food inflation and rising rent and mortgage payments. According to the Office for National Statistics, 94% of UK adults have seen an increase in their cost of living. Meanwhile, household income is set to drop by 4.3% this financial year, the biggest fall since records began in 1956.

At Qa Research, we see the impacts of these challenges up close. We specialise in engaging people who come from disadvantaged backgrounds and who sit on the economic fringes of society, a place where every penny counts.

Working with sectors including water, energy, transport, the NHS and universities, our in-depth research has led to insights into some effective ways to help struggling customers – and, critically, understanding things that can make people’s circumstances worse.

The impact

Money worries have acute and lasting effects on people’s mental health. Some of the people we’ve interviewed told us of simply desperate measures they’ve been forced into to mitigate dire financial situations: not heating their home, skipping meals, washing in a bucket – even eating raw potatoes.

The loss of control, the damage to personal pride and self esteem, and a sense of shame fuels high levels of stress, anxiety and can worsen mental health. When you contact a customer in this situation, they are not in a good place.

The debt spiral

If money is impossibly tight, things can quickly spiral out of someone’s control. They might miss a direct debit because they run out of money after rent and food. Then one missed payment easily becomes two.

The strain is enormous. And can cause some people to start to ignore or avoid tackling their growing debts.

What customers don’t need

You lie awake with worry. You don’t know where to turn. What would make things worse?

• A threatening letter
• A call from a company representative who is unable to deviate from a set script, offering little help and no hope
• To be made to feel bad for getting into difficulty and asking for help.

The impact of any one of these responses is to exacerbate the customer’s already negative feelings. Increased guilt and fear lead people to shut down and opt out. Soon, they won’t respond to emails or answer phone calls.

The consequences

Once a customer in need has stopped communicating, organisations are sometimes left to consider more extreme measures. Cutting them off, taking them to court, sending in the bailiffs.

But this only serves to widen the trust gap, to the point where it can’t be bridged.

The more heavy handed a company becomes, the more its reputation can suffer. In our socially connected times, it doesn’t take long for a brand to go from positive reviews to being positively toxic.

Happily, all this can be avoided. There is a better way. In part two of our blog, we will outline steps you can consider when seeking to help a customer who is struggling to pay their bills

If you would like to know more our research with those experiencing debt and financial difficulty, contact georgina.culliford@qaresearch.co.uk

Holding On To Home focuses on the experiences of tenants receiving Universal Credit or Housing Benefit.

It pays particular attention to identifying the causes of rent arrears, as this is the main reason why tenancies fail.

There is a lack of research in this area, and the problem is getting worse. Tenants are finding it increasingly difficult to pay their rent as new drivers of rents arrears emerge, and existing ones ‘play-out’ differently.

Research will explore the behaviours of tenants and landlords and provide evidence-based guidance which will improve landlords’ tenancy sustainment policies and practices. The ultimate aim is to make it easier for tenants to pay their rent, and reduce the number of tenancies that fail.

The study is a collaboration between Sheffield Hallam University, where the core research team are based, Qa, the Chartered Institute of Housing,  HQN (Housing Quality Network), and Andrew Burdett Design.

Mixed-method research will include:

• a tenant survey
• in-depth interviews with tenants and ‘stakeholders’
• a tenant diary-keeping exercise
• conversation analysis of landlord/ tenant communications
• documentary/ secondary data analysis
• and rent account analysis.

A Tenant Steering Group will oversee all aspects of the research, which will also be guided by a Policy and Practice Advisory Group.

The study is funded by the Nuffield Foundation through the welfare domain of its Research, Development and Analysis Fund.

Helen Hardcastle is leading the Qa team carrying out a survey of the tenants.

Helen said: “Our surveys will give people a chance to have their voices heard at a time when many are experiencing increasing pressure associated with the cost of living.”

You can find out more about the project on the Holding On To Home website.

Photograph: Pedro Ramos on Unsplash

Like many destinations, York is struggling with its own popularity. Millions of tourists visit the small city every year, which can impact the environment and its infrastructure, and cause tension between residents and visitors. 

But does that have to be inevitable; or could a more sustainable model address these issues? One proposed solution is a tourist tax. In part one of this series, we found qualified support from York’s hospitality leaders; and part two found both locals and visitors that we interviewed supported the concept. 

It is, of course, one thing to back a policy in principle. But how could it work in the real world? And in a way that its benefits will last?  

Tourist taxes at work

1. Manchester

York could look to other cities which have already introduced a tourist tax for inspiration. In Manchester, hotels and short stay serviced apartments in the city centre above a certain rateable value are required to pay a levy, which they can reclaim by charging tourists £1 per room per night. 

There is a lot to be learned from how Manchester has structured its tourist tax. In most European destinations such a levy is collected by local government. In England, local authorities are not allowed by law to enact a tourist tax. 

So the private hotel sector has taken the lead, establishing the Accommodation Business Improvement District (ABID) to administer a tourist levy, with the support of Manchester and Salford City Councils.

Could this be a pathway for York to follow? 

The Manchester ABID has three areas for investment of the tax, with very clear aims:

• to create and amplify marketing campaigns that would drive overnight stays
• to secure large-scale events, conferences, and festivals in low-season months;
• and to improve guest welcome and street cleanliness to ensure that guests who do visit Manchester have the best possible experience and are encouraged to return.

As we have seen in our previous articles, how the money is spent is of crucial importance to all the stakeholders in York. The revenue from Manchester’s levy is spent on measures aiming to increase visitor numbers but also improve the look and feel of some of the city’s infrastructure.

2. Amsterdam

Amsterdam might prove to be a more relevant model when it comes to spending the tax revenue. A highly popular tourist destination, Amsterdam struggles with the number and type of tourists it attracts. Residents often complain about noisy and ill-behaved visitors.  

The revenue from its tourist tax is aimed at improving the quality of life of residents by dealing with the consequences of over-tourism. The funds are spent on green and recreational spaces, local community resources, conservation, and street cleaning. 

A tourist tax for York? 

With a fifth of York’s 8.9 million visitors staying overnight in the city every year, a small accommodation charge for overnight visitors could raise considerable funds. 

When we spoke to tourists and residents for our research, they felt that any revenue could be spent on dealing with the impacts of over-tourism, making the city a better place for residents to live and tourists to visit.  

Some of the suggestions of where to spend the money included:  

• street cleaning 
• planning to reduce overcrowding 
• more events for residents as well as tourists 
• and support for homeless people. 

Our research also found that people would be supportive of a tourist tax only if the revenue was spent transparently.  

Visitors and residents alike were concerned that the tax might end up subsidising the local authority, allowing the council to reduce its funding on maintenance and infrastructure.  

These insights demonstrate that – to ensure the widest possible support for the tourist tax and to enable the hospitality sector to come on board – the revenue may need to be ring-fenced for additional and visible improvements to the city. 

Our research suggests that the organisation set up to administer such a scheme would need to be explicit and open about its objectives. And it could attempt to be inclusive too. York hospitality leaders told us they want a body that brings together all the relevant stakeholders. 

Next steps 

Our research participants identified and understood the challenges created by over-tourism in York. And they could see that a tourist tax might have a role to play in tackling such issues. 

If York could build on that consensus and use it to shape an approach to the tourist tax which is also tailored to the city’s needs, then progress is possible. 

We will be sharing our research with stakeholders and policymakers. It is then for the wider city to consider what to do next.

But our insights do indicate that a future York, which thrives on sustainable tourism, with visitors and residents living together in something approaching harmony, is far from an impossibility.  

• Read part one here: Over-tourism: Is a tourist tax the answer?
• Read part two here: Over-tourism: What do residents and holidaymakers think of a tourist tax?

• For more information about Qa’s work in qualitative research, contact Richard Bryan, Managing Director, at richard.bryan@qaresearch.co.uk and 01904 6320394

We established in part one that over-tourism is causing challenges in destinations across the world, not least the friction generated between visitors and residents. We also examined the case for a tourist tax as a possible mechanism to address these issues. 

Meanwhile, hospitality leaders in our home city of York, while expressing concerns about the impact of such a tax, told us they were open to the idea – if tourism sector representatives were part of a collective approach to setting and spending the tax. 

But what about the other major stakeholders – visitors to York, and those who live in the city? Would they embrace or reject a tourist tax? The support of both would be crucial in its successful implementation. So we took to the city’s streets to get the views of both. 

The views of residents and tourists

The concern created by over-tourism was evident in our interviews with York residents. Typical comments included: 

• “For me it detracts from the town” 
• “The streets are very crowded. That can be annoying at times” 

Residents brought up a variety of concerns. These included overcrowding, the strain placed by tourism on local services, issues related to litter, and the prevalence of Airbnb properties making it even more expensive to buy or rent a home in York. 

Meanwhile, visitors we spoke to were overwhelmingly positive about the city and their tourism experience. They were also more positive about the cleanliness of York than the residents.

Strikingly, there was unanimous support from those we interviewed across both groups for the principle of a tourist tax. Visitor comments included: 

• “It’s OK, because the tax is used to keep the cities clean” 
• “Happy to pay it if that means keeping the place beautified and cleaned and welcoming to tourists” 

And one resident said a pound a night didn’t go far enough:  

• “I think they could up that to £5 a night” 

Critically, the implementation of a tourist tax would not deter the people we interviewed from visiting York: 

• “It wouldn’t affect my decision [to visit]” 
• “It wouldn’t put me off. I’d still come” 

While a tourism tax was welcomed in principle by those we researched, residents did raise questions about how and where the money would be spent.  

Our research made it clear that transparency would be crucial if a tourist tax was to be successful. Locals said they would wish to be kept informed about the purpose and progress of the tax – and, crucially, be able to observe its tangible impact on York. 

A consensus – now what?

Our purpose in embarking on this research was to gain insights that could help policymakers in popular visitor destinations make changes to boost sustainable tourism, which in turn supported residents and tourists to co-exist in greater harmony. 

Specifically, would a tourist tax help this to come about? 

We’ve now established that residents and tourists we spoke to could be in favour of the tax. And – with the right set up and commitment to where the money is invested – hospitality leaders in York might be ready to support the policy too. 

• In our third and final blog we discuss how a tourist tax could be implemented in York in such a way as to achieve these aims 
• Read part one here: Over-tourism: Is a tourist tax the answer?

Research methods 

• All participants took part in a semi-structured interview, using a discussion guide to prompt conversation 
• Interviews lasted up to 10 minutes 
• Participants ranged from local residents to visitors staying overnight in the city from the UK and overseas 

• For more information about Qa’s work in qualitative research, contact Richard Bryan, Managing Director, at richard.bryan@qaresearch.co.uk and 01904 6320394