York and North Yorkshire's mayor has welcomed budget changes and proposed a levy that could generate more than £50 million annually.
Chancellor Rachel Reeves has backed Mayor David Skaith's idea for a levy aimed at benefiting the region.
The mayor also praised budget changes that include a growth fund and permanent reductions in business rates on the high street.
The budget has provisions for ex-British Coal staff in North Yorkshire to receive a pension increase and small and medium businesses to benefit from free apprenticeships for under 25s.
Mayor Skaith described the budget as "bold, fair, and ambitious," saying it would help reduce living costs.
He said: "This was a bold, fair, and ambitious budget that cuts the cost of living.
"Two-child benefit cap, gone. Minimum wage, up. Energy bills, down. This will make a real difference to thousands of working families across York and North Yorkshire.
"Small and medium businesses across York and North Yorkshire will benefit from lower business rates and local growth funding.
"It also provides more than 600 former miners in Selby with a much-needed increase in their pension."
Mayor Skaith has been collaborating with York St John University to study the impact of several policy changes, including a visitor levy.
The research found that the region's tourism sector is significant, with more than 41 million visitors last year, nearly eight million of whom stayed overnight.
If each visitor were charged £2 per night, this could generate £52 million annually.
The mayor added: "A visitor levy in York and North Yorkshire will be a total gamechanger for our region.
"We’re home to beautiful towns, villages, and cities.
"A small charge on overnight stays can revolutionise how we deliver transport, support businesses, invest in infrastructure and the visitor economy.
"Building the healthy and thriving communities for our residents and everyone that comes to visit them.
"We'll make sure this is right for our region, I'm committed to working openly and transparently with the Government and local partners to make sure this works for York and North Yorkshire through a comprehensive consultation process."
Mayor Skaith is also the chair of the Local Visitor Enterprise Partnership (LVEP) and will use this role to engage with the region’s tourism bodies, destinations, and hotels regarding the levy.
The aim is to ensure the levy benefits the region’s businesses and communities.
Charging visitors for overnight stays would bring the UK in line with other tourist destinations in Europe and the United States.
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