Tourism tax would cause ‘irreparable damage’ says hospitality group
UKHOSPITALITY Cymru says the visitor levy plan in Wales should be dropped due to the “irreparable damage” it would cause businesses in the sector.
Welsh Government has consulted on a proposed tourism tax on overnight stays.
They say it would help provide extra money to support the sector and local communities in tourism hotspots and that they are commonplace around Europe.
But the sector has warned it will cause serious damage to the multi-billion pound industry and see jobs lost saying the Government’s own research highlights a potential hit on visitor numbers.
This week the consultation into the tax closed.
UKHospitality chief executive Kate Nicholls said: “We strongly oppose the introduction of a discretionary visitor levy in Wales, particularly at a time when the hospitality industry is facing a troubling combination of soaring costs and staff shortages. The added burden in administrative costs, time and likely impact on visitor numbers and spend, could prove to be the final straw for some businesses that are the heartbeat of many local communities and the lifeblood of our high streets.
“Put simply, this is the wrong tax at the wrong time.”
In its submission to the Welsh Government, the leading hospitality trade body highlighted the significant contribution overnight visitors make to local economies in Wales and requested that a detailed, independent Economic Impact Assessment be carried out in order that the full consequences of implementing such a levy be comprehensively explored.
UKHospitality executive director for Wales David Chapman added: “It is clear to us that any levy will make Wales uncompetitive compared to other international travel destinations, as in European nations where such a levy is in operation, hospitality business are subject to fewer taxes and a lower rate of VAT. Should any visitor levy be introduced in Wales, the money must be ringfenced and operators given full sight and control over where the funds are spent.”
They added that the Welsh Government’s proposed levy differs greatly from the recently announced Manchester Accommodation Business Improvement district (ABID) initiative.
They said: “This voluntary, collaborative scheme gives operators full sight and control over the use of funds raised from a £1 guest surcharge that will be used solely to reinvest back into the sector.”