Plan for tourists to pay bed tax moving ahead
AIM FOR LEVY WITHIN THIS GOVERNMENT TERM
PLANS for a new tourism tax in Wales are moving forward, the Welsh Government has confirmed.
Legislation enabling local authorities to introduce a visitor levy in their areas will be put to the Senedd within this government term, which ends in 2026. The controversial levy will be a small charge paid by people staying in commercially-let overnight visitor accommodation, the Welsh Government has said.
Similar charges are commonplace around the world, used in more than 40 destinations including Greece, Frankfurt, Amsterdam and Catalonia - although tourism groups say they all have far lower VAT rates for their tourism sectors.
Under the new plan, local authorities will decide whether to introduce a levy and the funds raised will be used to benefit local areas. More than a thousand responses were received to a public consultation about how best to implement a levy which closed last December. Its findings have were published yesterday, along with a consumer research report exploring views among the public about a visitor levy.
The Welsh Government consultation gave feedback from businesses, local authorities and the wider public. It found support across most local authorities and across other organisations, although many responses came from representatives of the tourism industry and many disagreed with the principle of a visitor levy. The Welsh Conservatives have also expressed strong opposition to the scheme.
In addition to the consultation, the consumer research conducted by the Welsh Government looked specifically at the views of Welsh residents and UK consumers of domestic holidays. Key findings from the research include:
Those surveyed broadly supported the principle of a visitor levy. A majority (58%) of respondents agree that tourists should contribute towards the costs of maintaining and investing in the destinations they stay in, rising amongst people with lots of tourism in their area - in Wales (66%) and the UK (72%) with only 13% disagreeing.
Support for a levy was strongest in areas that attract the most tourists. The survey found that two thirds of people in Wales who reported that they live in areas that had a lot of tourism back the introduction of a visitor levy.
Respondents to the survey were more positive than negative when introduced to the concept of a visitor levy in a place where they go on holiday or in their area. 45% were positive, and 25% were negative and positivity increased amongst people with lots of tourism in their area.
Rebecca Evans, Minister for Finance and Local Government said: “As the Easter break approaches and many parts of Wales prepare to welcome visitors from around the world, it’s more important than ever that we look to create a sustainable tourism sector that also supports local communities.
“Over the coming years, we will continue to work with businesses, local government and all our partners to design a levy that will put power into the hands of local communities.”
Proposals for a visitor levy have been progressed through Welsh Government’s Co-operation agreement with Plaid Cymru. Plaid Cymru Designated Member Cefin Campbell said: “We want Wales to have a thriving, sustainable tourism sector and the visitor levy will play a part in achieving this. Our aim is to develop responsible tourism that works both for visitors and for the communities they are visiting.
“Local authorities will be able to introduce a small contribution from visitors enjoying their area to help develop and protect local services and infrastructure.”
But Welsh Conservative Shadow Minister for Tourism, Tom Giffard MS, said: “Tourism supports 1 in 7 jobs in Wales enabling people to pay council tax, helping to tackle the issues that Labour claim a tourism tax would fix.
“The Labour Government should be working with the industry to boost this vital sector instead of taking a sledgehammer to crack a nut.”