Tories pledge to axe new tourism tax law

Emily Price 

The Welsh Conservatives have pledged to axe new tourism tax rules before they come into force if the party wins the next Senedd election.

The Welsh Government’s Visitor Levy Bill will see councils given the choice to introduce an additional charge of £1.30 per night per person, plus VAT, for overnight stays in hotels, B&Bs and self-catering accommodation.

A lower rate of 80p would apply to hostels and campsites.

Wales’ 22 local authorities would then be free to decide how they spend the proceeds.

The Bill will also establish a register of visitor accommodation providers operating in Wales.

Amendments 

At the stage three debate on the Bill in the Senedd last week, finance secretary Mark Drakeford said the legislation is likely to operate in some parts of Wales – but not others.

The Tories tabled a series of amendments at the third stage of the Bill in an attempt to reduce its scope and impact but they were voted down.

With Labour and Plaid holding two thirds of seats, the fourth-and-final stage of the legislation is expected to be passed in the Senedd on Tuesday (July 8).

The Welsh Government says the visitor levy is based on the principle of fairness with the aim to share the costs of tourism between residents and visitors more evenly.

Local authorities that chose to implement the levy can invest the cash raised into local services and infrastructure to support tourism in their area.

But concerns have been voiced that the Welsh Government is pressing ahead with the reforms before fully understanding the impact it could have on businesses.

Changes

Tourism chiefs argue they have been faced with a flood of policy changes since the Covid-19 pandemic and small businesses have become overwhelmed by the number of new regulations and costs.

The Welsh Conservatives oppose the concept of a tourism tax and have voted against the Bill at every stage even tabling debate motions in a bid to get the legislation axed entirely.

Now the party is promising to scrap the tax before it takes effect if they come into power in 2026.

Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: “This decision sets in motion a hammer blow that will hit an already struggling Welsh tourism sector in 2027.

“Labour and Plaid’s toxic Tourism Tax, according to the Welsh Government’s own figures, will harm the economy to the tune of tens of millions of pounds and hundreds of jobs every single year.

“Not only will we vote against it as we have at every stage, but given the opportunity, the Welsh Conservatives will axe the toxic Tourism Tax before it comes into force.”

Oasis

Last week when Oasis kicked off their reunion tour in Cardiff, Tory MS Gareth Davies posted a video to social media claiming that a tourism tax could negatively effect similar future occasions.

Leader of both Rhondda Cynon Taf council and the Welsh Local Government Association Andrew Morgan argued that visitors paying over £200 for a ticket wouldn’t be put off by a few extra pounds for accommodation.

In a comment under the Tory video, the Labour councillor wrote: “Is this a joke?

“They are paying £200+ for a ticket, ‘flocking to Cardiff’ paying travel and many accommodation.

“You think £1.30 extra charge to pay for litter cleaning, taxi marshals and other services that face extra strain when there are big events is a barrier?

“Come on Gareth…”

Voting intention polling for the Senedd election in May has placed the Welsh Tories in fourth place at 11% with Reform UK and Plaid Cymru expected to overtake Labour.