The idea is that business in the area pay a yearly levy to a not for profit organisation which works to promote business growth in the area.
Similar Business Improvement Districts have been set up in large towns and cities across the UK over the last few year. They tend to focus on very tight geographical areas and tend to be focused on increasing retail trade.
The DBID concept concentrates on a larger physical area and is more focused on tourism and attracting visitors to an area.
Mike Wilkinson from the Yorkshire Coast Tourism Advisory Board says the organisation would have several aims
"We're trying to do a number of things with the funding, increasing visitor numbers, improving the visitor experience, encouraging repeat visits, stimulating longer stays and at the end of the day increasing spend with local businesses is what we are trying to do."
The group is now looking for funding and in-kind support from the private sector.