‘Toxic tax’: Welsh visitor levy not welcome in Wrexham
Alec Doyle, Local Democracy Reporter
The new Wales Visitor Levy is not welcome in Wrexham according to the council’s lead member for tourism.
In neighbouring Flintshire however councillors plan to consult further with local businesses before taking a view.
The levy, due to be introduced in April 2027, would allow councils to add a ‘tourism tax’ of £1.30 plus VAT per person, per night for anyone staying in hotels, bed and breakfasts, AirBnBs and holiday parks and 75p per night for those staying on campsites or in hostels.
If adopted by a local authority, the levy will apply to all overnight stays, whether foreign tourists or domestic Welsh visitors.
Welsh Government will give individual local authorities the right to choose whether to introduce it or not.
Its justification for the levy is that, if applied across Wales, it could generate £33m to help communities respond to the costs associated with tourism, support the Welsh language and improve toilets, footpaths, beaches, and visitor centres.
However there are no conditions on how councils can use the revenue raised.
“Toxic tax”
A research paper exploring attitudes towards the Welsh visitor levy took views from 2,558 people across the UK, with 1,005 living in Wales and 311 living in Welsh tourism hot-spots. Just 482 Welsh respondents supported the idea of the levy, with 155 of those in key Welsh tourism destinations.
North Wales MS Sam Rowlands, Chair of the Senedd’s Cross-Party Group on Tourism said: “I really couldn’t believe it when this toxic tax was passed earlier this month as in this current climate the last thing we should be doing is discouraging people from visiting North Wales,” he said.
“One of the biggest employers in my region is the tourism sector, which supports around 46,000 jobs and in normal times generates over £3.5 billion annually to the local economy. We should be supporting our hospitality industry not hindering its growth.
“I have met with many hospitality businesses owners, particularly in North-East Wales and people are extremely worried about the introduction of this tax and how it will impact them.”
Councillor Nigel Williams, Wrexham Council’s Lead Member for Economy, Business and Tourism, said he was not a supporter of the levy.
“As lead member with responsibility for tourism, I would currently not be in favour of introducing the tax,” he said.
“Any decision on tourism tax would need to be taken by the council’s Executive Board, but over the course of the year I’ve been out speaking with businesses in the hospitality and tourism sector and currently none of the businesses I’ve spoken to would welcome the new tax.
“They feel it would be detrimental to the sector.”
Concern
Leader of Wrexham Council Cllr Mark Pritchard – who is also the council’s Lead Member for Finance – said he was concerned about the impact on Wrexham’s growing visitor economy.
“I would not support the proposal as we want to welcome people to Wrexham without charging them additional taxes on their visit,” he said.
“The current visitor and tourism economy within Wrexham is growing as a result of many factors, including the increased profile we enjoy from the football club as well as ongoing local and multi-agency work promoting Wrexham and Wales as a destination.
“We want to encourage tourists to visit and spend their hard earned money here. Raising an additional levy or tax on their visit that could mean they choose to visit somewhere else and spend their money elsewhere.”
Flintshire County Council said it would listen to businesses directly affected within the authority before deciding whether to implement the levy.
“The authority has not yet considered whether or not it will implement the proposed visitor levy,” said Cabinet Member for Environment, Regeneration, Countryside and Tourism, Councillor Chris Dolphin.
“The council will fully consider the levy and weigh up the potential benefits and risks of implementation following consultation with a range of stakeholders including tourism businesses.”
Defending the decision, Welsh Government Finance Secretary Mark Drakeford MS said: “Visitor levies are used successfully all over the world. They ensure the pressures and opportunities tourism bring are balanced fairly between visitors and residents. We want the same for Wales.
“The levy is a small contribution that will make a big difference to our communities, helping to maintain and enhance the very attractions and services that make Wales such a wonderful place to visit and live.
Wales Tourism Alliance chairman Rowland Rees-Evans expressed his disappointment that the levy had been voted through by the Senedd.
“We are disappointed that Mark Drakeford MS is apparently dismissing the valid concerns about the visitor levy raised by industry experts and academics.
“Many people in Wales are unaware that the visitor levy will be applied to anyone staying in visitor accommodation in Wales. This includes people working away from home – whether or not they already live in Wales.
“The bottom line is that the visitor levy proposals will cost people in Wales money and jobs.”
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What is so toxic about this tax?
If labour brought in free gold bars for everyone at no cost to the Welsh budget the Tory party would oppose it cos labour.
Strange that this is a “toxic tax ” here in Cymru, but accepted the world over and never questioned once by travellers while booking a holiday or short break. It has even been introduced in England, in Liverpool and Manchester for example, with no fuss at all and people still visit and pay the tax. Place’s like Cornwall and Cumbria plan to introduce this, as they say it will benefit the area. The only place on earth it will have a negative affect is apparently Cymru. Anybody else find this odd, or is it another thing to beat us with… Read more »
The Welsh tourism tax is fundamentally different from the schemes in Manchester and Liverpool. Those cities use voluntary, business-led levies through Business Improvement Districts, applying only to large hotels and managed by the hospitality sector itself. In contrast, Wales is introducing a statutory, nationwide framework that allows councils to impose a mandatory charge on all types of accommodation, regardless of size or rateable value.
Visitors don’t care about the mechanism. The point was obviously about the suggestion that punters paying perhaps hundreds of pounds for accommodation will go elsewhere if they are asked to chip in a few quid towards improving the community they’re visiting.
So how many of the 1005 respondents said they were against the levy and how many didn’t know/weren’t sure? The article gives the impression that the remaining respondents were against the Idea but surveys like this normally have a sizable number of people who aren’t sure one way or the other.
The decision on a visitor levy has been devolved to the counties around Wales. Visitor numbers are relatively small in Wrexham, even with the work Ryan has been doing, but in other areas visitor numbers are large and the costs associated with all those visitors largely falls on the inhabitants and so those councils may take a different view.
But does a tourist tax or visitor levy deter people going to Greece or Montenegro, no it is a cost of being able to afford a holiday and a fairly minor cost.
Have these gentlemen asked the good people of Wrexham if they’re ok paying more ctax to fund freebies for visitors?
Councillor Nigel Williams, Wrexham Council’s Lead Member for Economy, Business and Tourism, said, “I’ve been out speaking with businesses in the hospitality and tourism sector and currently none of the businesses I’ve spoken to would welcome the new tax”. Well of course these businesses want the council tax payers to pay for all the tourist infrastructure from which they benefit.
20% of jobs in Mon and sir Benfro rely on tourism. It makes not a jot of difference to high end hotels but most jobs ain’t there.
Of course they’re against it. They are from unionist parties who see Wales as a playground for England. Tourism in Wales is an extractive economy. And if it’s so great for the economy – then why are the touristic areas of Wales – West Wales for example, among the poorest communities not only in Britain but in northern Europe – despite of (or maybe because of?) tourism?
Imagine how much poorer without tourism. Is that what you want or do you have a proposal to replace tourism.
How about developing the sector to increase the average spend per visitor and spread out demand across more of the year and more of Wales. Result? More GDP, more permanent jobs and less negative impact for locals. Of course you’d need a funding source that was protected from austerity to pay for this sort of investment. Any ideas?