A council leader in one of Wales' most popular counties for visitors has said he struggled to see how a tourism tax can be "justified" in the current cost of living crisis for households and businesses. The leader of Conwy Council, Councillor Charlie McCoubrey, said he personally struggled to "see how any additional burden either financial or administrative could be justified" in the current economical crisis.
This comes as Welsh Government is consulting on a visitor levy in Wales, which could see a small tax added to overnight stays in parts of the country, with the money used to support communities impacted by tourism. The levy would potentially be used for things such as beach cleaning or additional infrastructure.
The Welsh Government said these taxes are now commonly used around the world, although any final decision on implementing the tax will lie with each local authority. In response to such discussion however, the tourism sector has argued that the industry is already paying large amounts in taxes, such as through VAT, business rates, corporation and income tax.
Read more: New tourist tax proposed for Wales but no decision on who would pay or how much
Operators have previously warned that now would be the worst possible time for an extra burden on the industry and has pointed out that sales tax rates in the UK are far higher for the tourism sector in the UK than other areas using tourism taxes.
Counties such as Conwy attract thousands of visitors every year, with places like Llandudno, Conwy town and Betws-y-Coed proving to be popular destinations each year. When asked by North Wales Live what his view of the tourism tax was, Councillor Charlie McCoubrey said the council itself had not yet made any final decision.
But he added he personally struggled to "see how any additional burden either financial or administrative could be justified" given the current cost of living crisis. Cllr McCoubrey said: "This is a contentious issue with vocal supporters and opponents. As a council we continue to feed into the Welsh Government consultation and no final decision will be made by this council until the full details of the proposals are finalised.
"Tourism is a vitally important sector of Conwy’s economy and an industry which is under extreme pressure as we face a cost of living crisis. In the current situation I personally struggle to see how any additional burden either financial or administrative could be justified."
In response, Andrew RT Davies has supported the councillor's comments. "Conwy Council leader says it would be hard to justify implementing a tourism tax in the county," he said. "Another council leader backs away from Labour’s toxic tourism tax. The tax will risk businesses and livelihoods across Wales at a time when the cost of living is so high."
Welsh Conservative Shadow Tourism Minister, Tom Giffard MS said: "The Labour Government, have been steamrolling ahead with their plans to introduce a punitive tax on Wales’ tourism industry. This tourism tax could add a cost of £75 to a family holiday in Wales, driving down our competitiveness, substantially.
"The sector has been crying out that this is not a policy that they want or need. Now, we are hearing those same reservations from political leaders, councillors and people up and down Wales. I strongly urge the Labour Government to reconsider their position on this vitally important issue. A tourism tax will put jobs and livelihoods at risk, as 1-in-7 jobs rely on the industry."
In response, the Welsh Government said that they would not introduce the levy amid a cost of living crisis. They added that the process of creating and implementing a levy would take many years, and would be "impossible" to make specific calculations about how much the levy would be at this point.
A spokesperson for the Welsh Government said: "The careful process of developing proposals for a visitor levy, translating them into legislation, and then into delivery and implementation spans years, and will be subject to approval by the Senedd. We remain in the early stages of this journey and the levy is not something which will be introduced imminently.
"Visitor levies are commonplace across the world, with revenues used to the benefit of local communities, tourists and businesses. We will take all views on board as part of the consultation process which is currently ongoing."
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