Senedd set to vote on crucial stage of tourism tax legislation
Emily Price
The Senedd is set to vote on a crucial stage of legislation to introduce a tourism tax to Wales.
The Visitor Levy Bill will see councils given the choice to introduce an additional charge on overnight stays in their area.
Local authorities would then be free to decide how they spend the proceeds.
The Bill is currently at its third stage and if passed will likely get a final sign off later this month before being sent to the King for Royal Assent.
Today’s amendment stage is the final chance for Senedd Members to make changes to the Bill.
‘Common’
The Welsh Government hopes the tax will foster a sense of shared responsibility between residents and visitors.
Speaking ahead of the debate, Finance Secretary Mark Drakeford said: “The visitor levy is a small contribution that could make a big difference if councils choose to introduce it in their local areas.
“We think it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience.
“Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.”
If introduced, the proposed levy for overnight stays in hotels, B&Bs and self-catering accommodation would be £1.30 per person before VAT.
A lower rate of 75p would apply to hostels and campsites.
Amendment
The Bill has already been amended so under-18s will no longer have to pay the levy when staying in hostels or campsites.
The Welsh Government says the policy could raise around £33 million a year if all of Wales’ 22 local authorities chose to implement it.
But tourism chiefs argue they have been faced with a flood of policy changes over the last two years and small businesses have become overwhelmed by the number of new regulations and costs.
Opposition
The Welsh Conservatives oppose the concept of a tourism tax and will vote against, but have also put forward a series of amendments to the Bill to reduce its scope and impact, including exemptions and levy reductions.
Shadow Cabinet Secretary for Finance, Sam Rowlands said: “Labour and Plaid’s toxic Tourism Tax will devastate the sector; it must be axed.
“The Welsh Labour Government’s own figures project up to £576 million in economic damage over the next decade and hundreds of potential job losses annually as a result of their so-called ‘visitor levy’, which enjoys full support from Plaid Cymru and the Lib Dems.
“Welsh Conservatives are clear: we will be voting against this act of economic self-harm today, because the sector deserves to be supported not hit with a new tax.”
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Of course the Conservatives object. Wales only exists to provide business opportunities and a playground for England.
A tourism tax done right should boost business opportunities and improve the visitor economy for everyone. The Cons object because Wales only exists to provide *exploitation* opportunities and a *free* playground for England.
A tourist tax is common throughout Europe. What currently happens is that council tax payers subsidise the cost generated by tourists. We also know that when there are major events such as Oasis and Taylor Swift concerts the cost of hotels and all accommodation goes up.
Spot on Mike. A handful of us benefit directly or indirectly from tourism, the rest of us subsidise a substantial proportion of the extra costs, and suffer the inconveniences. This is a tiny step to redress the situation.
Look at Barcelona, since Covid they have focused the city on business NOT seasonal low paid tourism https://www.bbc.co.uk/news/articles/cp8d87l6lp1o.amp Who wants to run an industry where most staff are paid at minimum wage or just above, then they spend the rest of the year living on Universal Credit. I am currently in a virtual meeting with collegues from around the world – technology enables a work from anywhere culture. Perhaps the tourist tax could be used to fund rural wifi, then more people may move from Cardiff to locations such as Pembrokeshire and travel by train every week / month for… Read more »
That last sentence of yours relates to a major “equality of opportunity” issue. Not much point having rich ( relatively) folk moving from Cardiff to West Wales. Better if they didn’t have to move east in the first place.