James (left) and Angela Rusden at Scarborough's Toulson Court B&B
A Scarborough bed and breakfast owner has said businesses like his will face an "uneven playing field" if a so-called tourist tax is introduced in North Yorkshire but not in neighbouring East Yorkshire.
A consultation on plans for a visitor levy closed in February and legislation is expected to be brought forward later this year.
James Rusden, who runs Scarborough's Toulson Court B&B, said if the levy was not England-wide, cost-of-living pressures would mean some visitors would instead go where no tourist tax was being charged.
A government spokesperson said: "We're listening to businesses in Yorkshire and across the country on this so we make sure money raised is invested in local priorities."
Rusden said he believed such a levy would act like "a form of taxation".
"Nobody likes an extra cost and people will complain about it," he said.
"But if it was an even playing field it would be a lot better as it would be easier to manage and control.
"People are short of money. To put a tax on them coming on holiday makes them think twice about where they go.
"If someone is coming to Scarborough but has to pay a levy each night, but can go to Bridlington where there's no levy, then that's where they'll go.
"It's unfair and it'll make it harder for us to compete."
Businesses in Scarborough's North Bay could be some of those affected by a visitor levy
Rusden said he was also concerned about the time the levy could be introduced, as people continued to struggle with the cost of living and faced further increases to energy bills.
A record season at Scarborough's Open Air Theatre, with its string of sold-out shows, had kept some North Bay B&Bs in business this year, Rusden said.
"We have a fantastic reputation and have won some good awards," he said.
