Councillors back cautious approach to tourism levy

Elgan Hearn, Local Democracy Reporter

Questions for a public discussion on whether or not a county council should implement a tourism levy need to be carefully worded, a councillor has warned.

At a meeting of Powys County Council’s Economy, Communities and Residents scrutiny committee on Thursday, September 4, councillors received a report which looked at the pros and cons of implementing the levy – which could bring money into council coffers to run services.

The report, which will go on to a Cabinet meeting later this month, contained five options on what to do about the levy.

The five options are:

1. Not to implement the levy.
2. Minded not to implement the levy, but undertake an engagement exercise with the residents, businesses and tourism stakeholders of Powys to gather evidence and views on this decision.
3. Implement the levy and use the income to support general council services when the work impacts on visitors, this means – street cleaning, public toilets, parking, waste/recycling services, rights of way maintenance and public transport.
4. Implement the levy and use the income for more tourism specific infrastructure, visitor marketing, visitor information and site-based interpretation, tourism development projects.
5. A mixture of options three and four.

Council officers have plumped for option two.

Option two

Option two suggests ‘gathering evidence’ to gauge the views of residents and the tourism sector on a visitor levy before any decision is made on its future.

Former council leader, Cllr James Gibson-Watt, who has remained in cabinet looking after the education and economic development briefs, explained that senior councillors wanted to know the opinion of the scrutiny committee before “committing” to any of the options.

Cllr Gibson-Watt said: “It’s an interesting idea, but as is often the case Welsh Government tend to delegate controversial things down to local government to make the final decision.

“This levy idea is not a new one – it’s well established in many countries of the world.”

Taking Barcelona as an example of a city where a form of tourism levy is paid, Cllr Gibson-Watt said: “Everything works, the public transport is fantastic, the streets are regularly cleaned, the recycling and rubbish is picked up every day and the visitor experience is greatly enhanced.”

“However Powys is more complicated, we do have one or two honey-pot locations such as Powis Castle (in Welshpool),  Storey Arms and Pen y Fan in the Brecon Beacons, but finding a one size fits all approach is very difficult.”

He added that the tourism sector had given a “clear steer” that they didn’t think this was a “good idea at all.”

‘Vital’

Cllr Pete Lewington (Conservative -Newtown West) said: “We should be pro-tourism as it brings many economic benefits to the county, it’s a vital employer.”

He believed that one in seven jobs in Powys are reliant on the sector.

Cllr Lewington: “For me, this tax would mean less tourists and visitors and that in term leads to job losses and less income being spent on our high streets

“The potential disadvantages need to be teased out.”

He was also concerned that any money potentially raised by the levy would be used to help close the council’s budget black hole rather than help improve tourism related infrastructure in the county.

Cllr Lewington continued: “Careful wording of the questions would be fundamental.

“Residents who don’t work in the tourism industry will think this is a brilliant idea because it’s going to reduce their Council Tax – without fully understanding what is behind it.”

Cllr Liz Rijnenberg (Labour – Brecon East) said: “I think we need to take a cautious approach with this.

“The important thing and the bit which is missing from the report is the views of the general public.

“I am all for finding out what they feel.”

The committee held a vote which saw five councillors back Option Two – and one vote against it.

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill is Wales’ first locally designed tax.

The legislation was approved by the Senedd in July and is expected to receive Royal Assent later this year.

The levy is a charge on overnight accommodation and would cost £0.75 (75 pence) per person per night for those staying at campsites and hostels, excluding people under 18.

For those staying in all other types of visitor accommodation it would cost £1.30 per person per night.