Welsh businesses vote to strike over tourism tax

Welsh businesses have voted to take strike action over the Welsh Government’s proposed tourism tax.

Several major tourism attractions will close on Tuesday (10 December) after a resolution was passed in an emergency meeting with the Welsh Association of Visitor Attractions (WAVA).

The trade body represents around 100 tourism attractions in Wales.

Members say their businesses are already not achieving the visitor numbers they once had pre-Covid and that a tourism levy could cause more damage.

Legislation

The tax will see £1.25 per night charge for hotels, B&Bs and self-catered accommodation.

There will also be a reduced rate of £0.75 for camping pitches and dormitories.

The proposal requires a piece of legislation to be passed in the Senedd. If successful the tax could be introduced in April 2027.

The Welsh government says the levy will raise additional revenue for local authorities to reinvest in the public services and infrastructure that make tourism a success.

Risk

Concerns have been raised that such a tax could deter some visitors from coming to Wales and staying overnight.

The Welsh Conservatives say the plans – which were part of Welsh Labour’s co-operation agreement with Plaid Cymru – will risk jobs in the sector.

National Showcaves Centre for Wales, Ashford Price, says the tax proposals are “complete economic madness”.

He said: “In the latest commissioned Welsh Government report, their own findings were that in the worst scenario over 700 tourism jobs could be lost by this tax, with a revenue loss of £40 + million.

“Welsh Government figures were based only on a 1.6% drop in visitor numbers. Many in tourism expect the drop to be more.

“What sane government, apart from those in communist regimes, would knowingly risk putting 700 of their own people out of work in order to collect more tax from businesses that are contracting and need help?

“We should be encouraging visitors to come to Wales and not taxing them for coming. What the Welsh Government is proposing is complete economic madness.”

‘Stress’

Another WAVA member said they were suffering with “mental stress” due to the Welsh Government “continuously putting hurdles” in the path of their business.

“I feel like retiring and giving up the fight,” they added.

Colin Evans, who runs Cantref Adventure Farm in Bannau Brycheiniog National Park said: “Few people in Wales realise that this tax will also apply to them.

“Hence, if Welsh people take their holiday in Wales they are taxed, but if they go to England for their holiday they won’t be taxed.

“Only one thing is certain about this proposed tax and that is like all taxes they go up.”

Many members also commented that last year there was a 23% drop in the number of
visitors staying overnight in Wales and 60% of Welsh attractions saw less visitors than in 2023.

‘Fair’

Finance Secretary Mark Drakeford says it is “fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience”.

If every Welsh council was to introduce the levy, it’s estimated to raise £33m.

The tax would follow a similar move in Scotland and other European countries which have implemented some type of visitor levy.

Mark Drakeford said: “This Bill is rooted in the principle of fairness. We know tourism makes an important contribution to the Welsh economy and to Welsh life. We want to ensure its long-term sustainability.

“That’s why we believe 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.

“Money raised through a levy would be retained by local authorities and re-invested back into their local areas to support local, sustainable tourism. It’s a small contribution that could make a big difference.”