Fears visitor levy could be ‘final nail in the coffin’ for county’s tourism

Dale Spridgeon, Local Democracy Reporter 

Fears have been raised that a county’s proposed Visitor Levy could be the “final nails in the tourism coffin”, while others argued it could be a “fantastic opportunity”.

The comments were made during a Cyngor Gwynedd full council meeting on Thursday (14 May) when a proposal to launch a public consultation over the so-called ‘tourism tax’ was approved.

It’s the first step in the process, and will lead to a later decision over whether to implement the levy.

Residents and businesses will soon be asked to give their views.

The Visitor Levy was signed into law at the end of September last year, and gives Welsh councils the option to introduce a charge on holiday accommodation.

It would see tent campsites and shared bedrooms (hostels and dorms) impose a charge of 75p (90p inc. VAT) per night.

Other holiday accommodation (caravan, motor home, self-catering, glamping, bed and breakfast, hotel, etc.) would be charged at £1.30 or £1.56 (inc. VAT.) per night.

Exceptions include under 18s in shared hostels, rooms or tent campsites, anyone staying more than 31 nights in a single stay, and those in emergency or temporary housing arranged by the local authority.

Refunds would also be available from the Welsh Revenue Authority for those eligible.

During the meeting, Cllr Medwyn Hughes said “millions” of visitors came to Gwynedd “putting increasing pressure on local services at a time when public budgets are under strain”.

The levy proposal was “not an anti-tourism development but an attempt to try and manage and strengthen the visitor economy in a way that is sustainable for Gwynedd in the long term”.

It meant “a small contribution” from overnight visitors which would be re-invested locally, he said.

The council has been working with Conwy and Anglesey’s authorities in carrying out research. They both approved their own consultations this week.

Cllr Stephen Churchman said he “agreed with the principle of the levy” and saw “some benefits” but had “concerns”.

“I’d prefer we sit this one out, see what happens with neighbouring local authorities,” he said.

“I think now is not the time to go forward with this consultation…all we have to do is wait a year, look at the data again… then make a wiser decision.”

Cllr Louise Hughes added: “I don’t think the public will be saying ‘oh goody! Another consultation’.

“I also have reservations. The standard rate on hotels and holiday accommodation in the UK is 20%.

“Do we really want to add another levy to that? Will it put people off or encourage them to come?

“We already have a fragile economy in Gwynedd, particularly in the coastal areas where businesses rely so much on the weather.

“We should be careful we don’t send out an anti-tourism message.

“We might as well put up a ruddy great barbed wire fence around Gwynedd and stick up ‘Keep Out’ signs.

“If we do this we have to do it carefully and actually listen to what people say.”

Cllr John Brynmor Hughes added: “We’ve already put the lid on the coffin, but we haven’t screwed it down yet.

“If we do go ahead with this, we’ll be putting the nails in too, and it won’t open again.

“Tourism is already in a downward spiral. Give things time to settle.

“We see pubs closing, one in Morfa Nefyn last weekend, a Welsh cafe in Pwllheli closing, or about to, the Stryd Y Jel in Pwllheli, shops are closing.

“Here in Abersoch, shops are open but the numbers of visitors are down.

“I’m asking you to hold on, let’s get some proof of what might happen in other places, where is the money going to be spent?

“I say hold on, don’t put the nails in the coffin just yet.”

However, Cllr June Jones said: “We have to remember we are going out to consultation.

“I think it is an excellent opportunity and the right time to do it.

“In Edinburgh, they have the largest tourism tax in Europe, it hasn’t affected them, they get a few more people going because they have used that money within the city.”

Cllr Edgar Wyn Owen urged them to go to consultation.

He said: “We must do what is best for the people in the whole of Gwynedd. We can discuss issues after the consultation.”

Council leader Cllr Nia Jeffreys said she wanted to “reach out” to the people of Gwynedd and asked them to respond.

She said: “I want to hear people’s voices from across the county, I want to hear the voices of people who run tourism businesses, people who work in our hotels, our ice cream parlours, the voice of people working in the tourism industry, I want to hear from people in Pen Llyn, south Meirionnydd and Bangor.”

She encouraged councillors to vote to progress the consultation, and to use the opportunity to ask the people of Gwynedd to “raise their voices and respond”.

A proposal to defer failed. The vote to go ahead with consultation saw 43 in favour, one abstention and three against.