Welsh council poised to reject tourist tax following public opposition

Dale Spridgeon, Local Democracy Reporter

Another north Wales council looks set to reject plans to introduce a visitor levy after a public consultation found strong opposition to the proposal.

Anglesey County Council’s executive agreed to recommend not imposing the Visitor Levy on the island during a meeting today [Tuesday, 22 September].

A final decision will be made by the council’s full council on Thursday [September 24].

It was estimated the tax could raise upwards of £1.2-£1.5million per year for Anglesey, excluding VAT and after Welsh Government administration costs.

But a public consultation had shown “strong opposition” to the idea among tourism workers, business owners/managers and visitors.

Residents had been “more divided” but opposition had still slightly exceeded support at more than 58%, a council report noted.

The executive gave their support to a recommendation that the council does not adopt the levy, “having considered the current uncertainties facing the tourism sector and outcome of the public consultation and impact assessments”.

They also supported a recommendation to “monitor, review and consider evidence of the impact of the Visitor Levy in other local authorities in Wales that have chosen to adopt the Levy, and any changes to the relevant legislation”.

Members also supported a recommendation that the chief executive, in consultation with the leader, will “write to Welsh Government requesting a review of the current legislative regime to address the issues raised in the recent consultation process”.

The report noted: “Opposition to the adoption of the Visitor Levy is strong, with 1,482 (70.8%) of all respondents opposed or tending to oppose the introduction of a visitor levy, while 525 (25.1%) supported or tended to support it.”

A total of 2,098 responses had been received to the online consultation, and was supplemented by feedback provided in face-to-face sessions.

Opposition had centred on a “perceived risk” to small and seasonal businesses, the “high percentage” of self-catering
accommodation on Anglesey, the 182-day rule, which pertains to self-catering properties that must be available for at least 182 nights per year to qualify for business rates instead of council tax, and the 20% VAT threshold.

Concerns included “a lack” of clear data, administrative complexity, taxing children, impact on lower-income families, higher costs for visitors, and competition with areas where there was no Visitor Levy.

The report also noted the “challenges facing Anglesey from the pressures of tourism,” and that there was “clear support for the need for additional revenue to support destination management and the alleviation of the impacts of over-tourism on sites”.

Those in support felt that visitors “contributed to local pressures” so “should make a modest contribution” to maintain public spaces, visitor infrastructure, cultural and heritage assets, environmental protection and local services. It was also felt the tax could result in local improvements “benefiting residents and visitors”.

Modelling suggested “the levy could lead to a very small reduction in visitor demand,” although this would be “partly offset” by local investment funded by it, the report said.

Income raised could also provide “a stable source of funding for projects and services supporting residents, visitors, businesses, and local communities”.

Cllr Alun Roberts said “there was a clear objection” to the levy’s introduction.

It has also become clear how important the tourism industry was to the people and economy of Anglesey, as it creates work, livelihoods and sustains families, he said.

“As highlighted in the third recommendation, there are weaknesses in the legislation, there’s a need for the Welsh Government to revisit it, ” he said.

Council leader Cllr Gary Pritchard agreed, adding that legislation introduced by the former Welsh Government had not allowed them to “ensure that we are not affecting the [tourism] industry”.

Describing how the matter had been discussed by the partnership and regeneration scrutiny committee on September 15, Cllr Sonia Williams said a need for the levy was “recognised” by the committee, which had “drawn attention to its weaknesses,” and “raised concerns over fairness and risks faced by businesses”.

The committee emphasised “feeding back” to the Welsh Government regarding the consultation and how the legislation “could be improved to better reflect the needs of Anglesey, considering it’s a rural area,” she said.

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