Consultation on tourism tax will start in autumn
THE consultation on proposals for a tourism tax in Wales will start this autumn in a move attacked by the sector.
Rebecca Evans, Minister for Finance and Local Government, said a “local visitor levy” would enable destinations in Wales to be “enjoyed for generations to come”. Any final decision on whether to use the tax would lie with each local authority.
But North Wales Tourism chief executive Jim Jones said it would be an “absolute disaster” for the sector.
Tourism brings a substantial economic contribution to Wales with tourism-related expenditure reaching more than £5bn annually in 2019.
Welsh Government say a tourism tax would raise revenue for local authorities enabling them to manage services and infrastructure which makes tourism a success.
But critics warn it will be another tax burden on the sector - making Wales less competitive in comparison with other parts of the UK.
The Government said it would provide a platform for a range of views to be considered.
Rebecca Evans said: “Visitor levies are a common feature in tourist destinations internationally.
“They are an opportunity for visitors to make an investment in local infrastructure and services, which in turn make tourism a success. Without such a levy, local communities face an undue burden to fund local services and provisions on which tourists rely. From keeping the beaches and pavements clean, through to maintaining local parks, toilets and footpaths – the critical infrastructure that supports tourism should be supported by all those that rely on it. The levy will apply to those paying to stay overnight within a local authority area.”
But Jim Jones said: “A tax on tourism would be a hugely regressive step that would damage an industry already reeling after being battered by the pandemic.
“It also makes no sense strategically because the tourism and hospitality sector is well-placed to lead North Wales on the path to economic recovery so this would be a hindrance. We speak to businesses every day and they are totally opposed.
“We would oppose the introduction of a tourism tax at any time but to consider that now would be an absolute disaster.”