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Opinion

A visitor levy is an investment in our future

29 Nov 2024 4 minute read
Mark Drakeford in Milford Haven

Mark DrakefordCabinet Secretary for Finance

Whether it’s the majestic mountain ranges of Eryri, our vibrant cities, or our picturesque coastline, Wales has so much to offer visitors. But we must ensure
tourism and our communities continue to thrive.

This week, the Welsh Government has introduced a Bill which will do just that. If passed by the Senedd, it will give local authorities the ability to introduce a small charge on overnight visitor stays in their area – this is known as a visitor levy.

We want everyone to be able to enjoy everything our beautiful country has to offer. We believe local infrastructure and services should be funded by all those who use them.

The visitor levy is designed to ensure visitors make a small contribution to the maintenance and improvement of the areas they visit, alongside local residents.

This Bill supports our ambitions for sustainable tourism in Wales. The Bill is an important step towards that goal because the proceeds from the levy will be
reinvested in schemes and services which support tourism in a local area.

Unique

Wales is a diverse country – some communities might benefit from introducing a levy more than others – it will be up to local authorities to decide whether they apply in their area, based on the unique needs and features of their area.

Before they do so, they must consult locally to help inform their decision. We
estimate the earliest a visitor levy could be introduced in any part of Wales would be 2027.

If the Bill is passed, those areas which decide to use a levy, the charge would be 75p per person per night for visitor stays at campsites and hostels, and £1.25 per person per night for stays in other visitor accommodation.

We estimate the levy could raise up to £33m per year if it was introduced in every area of Wales. This would raise new money for local communities, which would be re-invested in the area to improve local facilities and infrastructure used by visitors, such as public toilets, footpaths, beaches and visitor centres.

Potential

This funding could also be allocated to the promotion of sustainable tourism and the support of the Welsh language to ensure the continued growth and preservation of Cymraeg.

This recognises the important link between heritage and tourism. Do we want to miss out on the transformative opportunities a levy could provide?

Many places across Europe have introduced a visitor levy, including Venice and
Amsterdam. Manchester became the first UK city to introduce a charge for visitors to hotels, raising £2.8m in its first year – the revenue raised has been spent on improving the local area through street cleaning and public events.

The Balearic Islands’ charge for visitors has financed 168 projects worth €263m
since 2016, covering a wide range of areas, such as the environment, cultural
heritage, employment and social renting.

Proud

We see the same potential in Wales. And the levy could help support similar
investments in local areas. Wales is a fantastic destination with something for everyone. We are proud to show it off.

That’s why we think it’s fair we ask those visitors coming to stay to make a small contribution to help protect and maintain its beauty and to invest in our communities.

Imagine a future where every visitor contributes to the preservation and
enhancement of the very place they come to enjoy. By asking visitors to make a fair contribution to sustain a tourism industry that is so vital to our economy, we can ensure Wales remains an attractive visitor destination
for years to come.

This visitor levy is an investment in our future.


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Paul
Paul
2 hours ago

In theory this is a good idea. In practice though I don’t have any faith in the money trickling down to the community.

Adrian
Adrian
2 hours ago

It must be cold outside: I just saw a socialist with his hands in his own pockets.

Bert
Bert
35 minutes ago
Reply to  Adrian

Meanwhile, VIP lanes. And no-one is laughing.

Ap Kenneth
Ap Kenneth
2 hours ago

If such a charge is introduced then the tourism sector in that area should have an input into how the monies are utilised. They need to see the benefits as they will be collecting the levy.

Ryan Hopkins
Ryan Hopkins
1 hour ago
Reply to  Ap Kenneth

I mean, not to be rude, but this was addressed in the article:

“Before they do so, they must consult locally to help inform their decision.”

“This would raise new money for local communities, which would be re-invested in the area to improve local facilities and infrastructure used by visitors, such as public toilets, footpaths, beaches and visitor centres.”

Like literally what more could they do? Sustainable public services and additional funds for community projects can only serve to help the businesses in these communities.

Howie
Howie
28 minutes ago
Reply to  Ryan Hopkins

Plenty of consultation ends with no notice taken of the consultation as the CT payers in Caerphilly CBC will attest to

Ap Kenneth
Ap Kenneth
26 minutes ago
Reply to  Ryan Hopkins

Consult is not exactly the same as say, being on the actual committee making the spending decisions

Jack
Jack
1 hour ago

Appalling idea. It will put visitors off coming to Wales. Tourists pay heaps already – they keep the hospitality industry going.Shops, pubs, Museums, tourist tat and so on are all funded by them, now to put an extra tax on them to make it seem as though Wales does not want them is just economically silly.

And how much of this money will actually make it to the ‘needed’ areas – I bet most will be used to employ people to collect the money so more pointless jobs for no purpose.

Bert
Bert
34 minutes ago
Reply to  Jack

When were you last put off a holiday destination by the taxes levied?

Ap Kenneth
Ap Kenneth
24 minutes ago
Reply to  Jack

The last three breaks abroad have involved paying a tourist tax, it is minor and does not affect your decision on whether to go or not.

Ianto
Ianto
23 minutes ago
Reply to  Jack

If they don’t want to pay £1.25 a night to support the local infrastructure – all of 125 pennies – they’re hardly likely to contribute much to the economy, are they? We won’t miss them.

Paul
Paul
19 minutes ago
Reply to  Jack

If £1.25/ night is enough to
Stop your holiday you probably aren’t going to contribute much to the local economy anyway.

Gareth
Gareth
8 minutes ago
Reply to  Jack

Since 2012 Catalonia has had a tourist tax, and in the Balearic islands since2016, and tourists from Britain still holiday there in the millions, since the introduction, if this is such a “appalling idea”, why do they continue to holiday there? Thailand, Belgium, France, Italy, Greece, Germany and many more have a tourist tax, and nobody seems to be avoiding these places as a result of the tax, so why would Cymru be different? Cornwall seem quite keen on the idea also.

Y Cymro
Y Cymro
2 minutes ago

A tourism tax is normal in most developed countries. Anyone who visits London will realise how much tourists are charged through the nose, in most cases exploited. But it’s what you do with the money raised is the important thing. Tourists visit, some on a regular basis, popular parts of Wales because they love the culture, history & landscape so choose to return. Any levy should go to back into those communities to not only protect the landscape but also improve facilities for both locals and tourists alike.

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