A CALL for a 'tourism tax' on Lake District hotel stays has proved divisive – with one business boss branding it 'monstrous'.

Jonathan Denby said the proposal would discourage visitors and that such ideas were 'put forward by people who hate tourists'.

"It would be completely unfair to expect our customers to pay another tax on top of everything else that they already have to endure," said Mr Denby, owner of South Lakes Hotels, whose portfolio includes Windermere Park bed-and-breakfast and Kendal's Riverside Hotel. 

Mr Denby was reacting to the news that a report from the Northern Powerhouse Partnership, a business-led think tank and advocacy group, and Ernst & Young had called for a 'tourism tax' to 'support culture, protect the environment and improve visitor experience'.

The report suggests this tax could, when based on a £1-per-night charge, generate more than £5.5m a year in the Lake District. 

But Mr Denby was sceptical, suggesting money of this kind 'never' found its way into the visitor economy.

"The tourism industry is the highest-taxed sector in the UK," he said. 

"We don't get any of that money back reinvested into our sector. It's absolutely scandalous."

Westmorland and Lonsdale MP Tim Farron echoed some of Mr Denby's concerns, saying the fact a tourism tax was being floated was 'proof' the Government did not adequately fund the area to help it cope with visitors.

“Rather than a tourist tax, which has the potential to harm local businesses who are already struggling with rising energy bills and food prices, I would much prefer the Government to compensate our local NHS and our local council and reward them for providing services to our millions of visitors,” he said.

South Lakeland district councillor Andrew Jarvis, who represents Windermere and is the finance and assets portfolio holder for the local authority, was more positive.

He said a tourism tax was 'clearly something we need to explore' in order to 'understand what opportunities are there'.

"We know that there are significant costs brought by tourists and, all too often, those have to be borne by local residents," he said.

"Many places in Europe have a tourist tax, it's something which seems to work well there. 

"We don't want to be punitive of tourists but, if they are able to contribute something towards the cost of providing services in this area and take some of that pressure off the backs of council taxpayers, I think that would be very, very welcome indeed."

Gill Haigh, managing director of Cumbria Tourism, said the organisation recognised public sector finances were 'much reduced' in the county, resulting in 'services for visitors being significantly reduced'.

"So, whilst Cumbria Tourism would be open to discussions that explore this subject, it’s critically important that we recognise the significant contributions the tourism sector already makes to the county’s economy, the contribution it makes to the quality of the county as a place to live, and to understand the impact such a levy might have on visitor behaviour, especially when competing with destinations which do not impose such a system," she said.

Hanna Latty, head of strategy and rangers at the Lake District National Park Authority, said the Lake District National Park Partnership, made up of representatives from the public, private, community and voluntary sectors, would be keeping a 'watching brief' on tourism tax developments.

“There is a need for continued investment in the Lake District to support visitor infrastructure to help people visit and move around the national park sustainably, and we have been very successful in securing investment," she said.