MSs recommend that local businesses and organisations should help decide how visitor levy money is spent

Local organisations, including businesses and tourism providers, should help decide how funds collected from Wales’ proposed visitor levy are spent, according to a Senedd Committee.

Following scrutiny of the Welsh Government plans to charge tourists staying in Wales, the Senedd’s Finance Committee is publishing a report calling for the creation of ‘visitor levy forums’ to ensure local authorities listen to businesses and other local bodies when deciding how money should be allocated.

The Committee recommends that the Welsh Government follows the example set in Scotland, which has recently enacted a similar law, and establishes a Visitor Forum to bring communities and industry together to have a voice in the process.

The majority of the Committee concluded that the Senedd should agree to the general principles of the proposed law and that it should move to the next stage of the law-making process.

Charges

The Welsh Government legislation scrutinised by the Committee, the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill – commonly called the ‘visitor levy’ or ‘tourist tax’ – will give local authorities the power to impose a charge on visitors staying overnight.

Under the current proposals, the amount charged to tourists would vary, ranging from those staying in hostels or camping areas paying £0.75 per person per night, with people in other holiday accommodation like hotels or house rentals, paying £1.25 per person per night.

The Welsh Government told the Committee that they estimate this could bring in up to £33m per year but some hotels and tourism organisations said that this scheme could put off visitors coming to Wales.

Reinvested

Peredur Owen Griffiths MS, Chair of the Finance Committee, said, “The visitor levy has the potential to generate tens of millions of pounds every year which can be reinvested into maintaining and improving local facilities such as pathways and public toilets, supporting both residents and visitors alike.

“Using these funds to improve local infrastructure will benefit our communities and foster sustainable tourism.

“One of our key recommendations is that this law should be amended to set out that businesses and tourism bodies should sit with local authorities to work together on where the money should be spent.

“Of course, we also heard concerns from the tourist industry about how this charge could put people off visiting Wales. But I’m confident that a sensible and collaborative approach can benefit our economy whilst preserving the appeal of Wales as a premier destination. This legislation has the potential to make tourism work better for Wales.”

The Senedd is due to debate and vote on the first stage of the proposed law on Tuesday, 1 April.