Scepticism over tourism tax impacts

Councillors believe the introduction of a tourism tax in Wales will have a negative impact on the Blaenau Gwent economy.

At a meeting of the count borough council’s Place scrutiny committee on Tuesday, March 11 councillors were asked to give their views on the Welsh Goverment’s visitor levy proposal ahead of a consultation with local businesses.

Councillors received a presentation by destination management officer Alison Tippings on the visitor levy which if voted through at the Welsh Parliament, could come into force in 2027.

The tax would see guests at hotels, B&Bs and self-catered accommodation pay £1.25 a night while a lower rate of 75p would be charged for hostels and campsites.

All 22 local authorities in Wales will be given a choice on introducing the charge.

If they all did that, the levy would raise £33 million a year.

“Disadvantage”

Ms Tippings said: “Any money raised from the levy if we proceed with it would need to be put back into improving facilities for visitors, for instance public toilets.”

Non-aligned Independent Cllr Jonathan Millard said: “With the extra cost on top I think we’ll be at a disadvantage for tourism.

“We’re already struggling enough as a borough for people to come and visit us and I think this will have a negative effect on the local economy as well as tourism.”

He believed the Welsh Government had a “lot more” work to do on evaluating how the charge would impact the tourism industry “particularly” in Blaenau Gwent.

Opposition Independent group leader Cllr Wayne Hodgins said: “There’s a large number of questions we can’t get all the answers to.

“There’s not enough detail for us to scrutinise.”

Considerations

Cllr Keith Chaplin (Labour) wondered if it was wise to see what “other front runner” local authorities do that implement the levy if it becomes law.

Cll Chaplin said: “Are there any hidden costs that we may not have thought of, and we can see where we are.

“It will be something for the council to consider down the line as this progresses.”

The committee agreed the report and their views will now be included in the forthcoming consultation.

Another report outlining the views given in the consultation will come back to the committee for further debate.

A final vote on the Visitor Accommodation (Register and Levy) Etc.(Wales) Bill will likely take place at the Welsh Parliament this summer.