Nearly half of people across Yorkshire and the North East fear the proposed "holiday tax" could force local businesses to close, according to new polling that lays bare growing regional anxiety over the levy's economic fallout.

The survey of more than 10,000 adults across Great Britain found concern is even sharper in Yorkshire than in the North East: 47% of Yorkshire residents worry the Overnight Visitor Levy could lead to business closures, compared with 43% in the North East. Fears over youth employment follow a similar pattern, with 38% of North East respondents and 35% of Yorkshire respondents concerned about fewer job opportunities for young people.

The proposed levy would allow local mayors to add a charge to overnight stays in hotels and other accommodation — a measure already introduced in Edinburgh this month at a 5% rate.

Both regions show comparable unease about behavioural fallout. Around three in ten in each region say they would be less likely to visit family and friends if overnight stays became pricier, while roughly a third would think twice about visiting museums and galleries. Opposition to the tax itself sits at 54% in both Yorkshire and the North East, though Yorkshire residents are marginally more likely to say it would put them off holidaying in England altogether — 73%, against 70% in the North East.

The stakes for the hospitality sector differ sharply by scale. In Yorkshire, hospitality supports 271,000 jobs and contributes £6.5bn to the local economy; in the North East, the sector supports 118,000 jobs and contributes £2.1bn. Nationally, 78% of Brits are concerned about the levy's effect on their communities, with 46% worried about business closures and 38% about youth job losses.

The findings land in the wake of Alan Milburn's interim report into youth unemployment, which warned of a growing "generational faultline", with almost a million 16- to 24-year-olds outside education, employment or training. Hospitality is widely seen as one of the most accessible routes into work for young people, with many starting out in hotels, restaurants, pubs and cafés.

Allen Simpson, Chief Executive of UKHospitality, said visitors do not simply stay in a hotel or eat in a restaurant, but also support local attractions, taxi firms and shops. He called on the Government to "do the right thing and stop the holiday tax".

Stephen Cassidy, Senior Vice President at Hilton UK and Ireland, said the polling made clear that British people were worried about the tax's impact on local economies, arguing that hotel job creation and investment were already under pressure from business rates rises and high energy costs. He said lifting the tax burden was essential if the sector was to keep opening doors to work for the next generation.

Economic modelling by Oxford Economics, commissioned by UKHospitality, found that a 5% holiday tax applied across England would cost holidaymakers £1.6bn a year, shrink GDP by £2.2bn, cost 33,000 jobs nationally and leave the Treasury £688m worse off through lost tax revenue.