Plans for a ‘tourist tax’ on parking in upscale holiday destinations have sparked concern among businesses, who view the move as potentially harmful.

A contentious car parking strategy that would see tourists paying more for spaces in South Hams car parks is currently under discussion. Business owners are worried that this could deter tourists from visiting towns across Devon, including the affluent coastal town of Salcombe, often referred to as Chelsea-on-Sea.

The council plans to increase fees across its car parks for the first time in four years, due to rising service delivery costs. Currently, a full day at Salcombe Creek car park costs £6.50, but with the proposed increase, it would cost visitors £10 and locals £8.

However, residents will be eligible for a discount, meaning they will pay less than holidaymakers. Jude Macintosh, manager of The Ship In Dock Inn, said that parking in Salcombe and Dartmouth is a ‘constant headache’, and that higher prices won’t encourage guests to visit.

She stated: “Dartmouth and Salcombe is particularly challenging on parking and yes it does have a knock-on effect with people coming. I don’t know why residents get it cheaper. I would like to know that because as far as I know you should pay exactly the same as what visitors pay in Mayor’s Avenue.

“Our bookings have gone down by a third because now we don’t provide permits. We took it away because we can’t afford to carry that cost. The councils are just trying to keep people away because they are not doing anything – as in parking – to entice them.

“People travel to us because they are a lot more mature than young people to hop on a bus and travelling in that it doesn’t entice them.”

A local and small business owner, 64, based in Salcombe, explained that parking in town is an ‘awful issue’ – and the plans will ‘most definitely’ stop people from visiting the area. He said: “Everybody packs down here to rent holiday homes but things change – right now it is extremely quiet.

“Wouldn’t it be lovely if people could park without adding an extra expense? Parking is something that has not helped the local community.”

Owner of Dartmouth Launderette Wendy Jones said the plans will do shops and businesses ‘no good at all’. She said: “It is very detrimental to Dartmouth. Parking is quite expensive as it is. It will damage the businesses.

“People tend not to use park and ride because it is quite expensive too. I think if they made it cheaper people would utilise it more.

“It is just an easy way to make money and we will all suffer with this. We are slightly different from your average tourist shop but we get loads of campers.”

Totnes is another area under consideration. Roger Savin, 81, owner of The Little Elbow Room in Totnes has people from all over the country and the world visiting for holidays.

He expressed his concerns, stating: “I find that very difficult for them [council] to police that. How are they going to know if the car is not local. It can have a car plate from London but the person being from here.”

A second business owner in Totnes voiced their frustration, saying they would be ‘very frustrated’ if they were a visitor and saw the price increase. They believe tourists are the ‘bread and butter money’ as they sustain the businesses throughout the year.

They further added: “If parking is raised in an amount which is unreasonable I am afraid that people might not buy from the High Street. I think that the footfall decreases because of the lack of spaces and the pricing.”

A council spokesperson revealed they are ‘regretfully considering’ increasing charges from April 1 2025. The spokesperson explained: “We checked car parks in similar locations across Devon, Cornwall, Somerset and Dorset to compare our current charges and our proposed new charges.

“Following this review of charges across the South West, it is clear that car parking charges in the South Hams are lower than most. Residents of the South Hams would be able to apply for membership of a new Resident Discounts Scheme.

“This will allow them to access lower parking charges at all our council-owned car parks via the cashless parking app. Those who don’t have a smartphone will receive an extra half hour parking time instead.”

The consultation opens at 9am on Thursday December 12 and closes at 5pm on Sunday January 5 with a final decision made in the same month.