Western Daily Press (Saturday)
Tourism tax ‘could save seaside towns’
ATOURISM boss has backed the idea of a tax for holidaymakers coming to parts of the West such as Cornwall – but added neighbouring Devon would need one as well.
Malcolm Bell, chief executive of Visit Cornwall, was speaking in the wake of Venice beginning trials of charging visitors on busy days.
Mr Bell said the idea of implementing a tourist tax upon visitors to the area is a concept he can “certainly envision” in the future.
He said he believed it could work – but argued Cornwall shouldn’t stand alone – and other holiday hotspots such as their Devon neighbours needed to do it too. And he said the decision shouldn’t be ‘rushed’ to ensure the proceeds are properly invested – and the tourism industry itself doesn’t suffer.
Mr Bell, who was born in Cornwall and has Cornish family roots going back to at least the 1700s, said: “We have observed how fast decisions are often very poor decisions. It is a time to have the debate, not rush into action, engage with people and look at the art of the possible.
“We must make sure it is not burdened with administrative costs and helps to manage the situation we are facing and improve it. It needs to be very carefully considered, and the decision should involve businesses and other partners. We are already talking to the Cornwall Community Foundation and National Landscapes. But even if we end up avoiding the tourism tax, we should look at the rationale about why people are calling for one.”
He says the UK is already the second highest tax visitor economy in Europe – but if a specific tourist tax were to be implemented, it would have to be for more than just Cornwall.
He added: “There is no point in Devon not having one and us having one. Something to consider is there is already a tourist tax as over 30% of visitors spend goes into tax. We’re the second highest tax visitor economy in Europe. In France you pay 5.5 per cent, whereas here we pay 20 per cent.
“The normal argument would be we need some distribution of the money that already goes to the Treasury to instead go back into local levels. Given the national finances, we see the need to pay more into defence, the NHS, social services – we have to be realistic.”
The high level of tourism across Cornwall not only takes its toll on the community but also its surrounding environment. A Cornwall Committee report highlighted that Cornwall gets around four million holiday visits and around 12 million day visitors a year, which is reflected in the value of the sector to the economy.
One factor Mr Bell deems equally as important if the levy is implemented is ensuring the transparency over how the new tax money is being spent and where exactly it is going.
He said he believes holidaymakers would react more compliantly in paying the tax if they know this money was going directly back into Cornwall and its communities and environment.
He said: “We have 85% repeat business in Cornwall – holidaymakers who regularly return would want the levy to help Cornwall and its residents.
“If holidaymakers want to contribute, if they think it’s going to the right cause, I wouldn’t mind. That to me means yes they would be pleased to see that – if they know where it is going. People are cynical and want reassurance that their extra payment is going on something that is appropriate. But if it is just another levy added onto VAT and taxes? That is probably not what people want to see.”
Another factor he adds is that if the levy were to raise a significant sum of money, where would it go but also would it mean the Government pays less money to the county because it would be “raising their own taxes”.
He said: “If this tourism tax raised a load of money, the Government must give us less – I hate to be a cynic, but you have to think it through carefully.”
He argues that neither Cornwall Council nor the Government have any intention of implementing the tax and the tourist tax that has been rolled out in Manchester from April last year cannot be applicable to the South West.
Mr Bell explained: “We are looking in the very early stages of what Manchester has done and saying how can it apply to Cornwall businesses.”
On April 1, 2023, Manchester introduced a tourist tax which has seen a £1 charge added to the cost of a room per night. The tax is capped at 21 successive days.
But the tourism boss said: “Manchester has introduced a charge per night, but it is a business improvement district legislation. We have hotels, catering, holiday parks – whereas they have hotels – so their model doesn’t work here. So I could conceive it, but the levy should be considered across the community – there is a lot to consider.”