The owner of a top Welsh visitor attraction has branded the idea of a tourism tax in Wales as “unfathomable” and says "anti-English" sentiments risk affecting the holidays sector. In February, the Welsh Government announced a tourist tax consultation will be launched this autumn when full details will be released.
If implemented, councils can choose whether to introduce a visitor levy. The fee would be paid by anyone staying in a hotel, self-catered apartment or campsite overnight.
Ashford Price has been at the helm of the National Showcaves Centre for Wales at Dan yr Ogof, near Ystradgynlais in the Swansea Valley, for nearly 50 years and has been speaking out in his role as membership secretary of the Welsh Association of Visitor Attractions.
READ MORE: All the major events taking place in Wales this Easter.
As the sector prepares for Easter and a key chance to kick-start the tourist season, he says the proposed tourism tax will lead to a fall in the numbers employed in the tourism industry and possibly less tourism investment. Ministers say a tourism tax would raise money for councils to manage services and infrastructure in tourist hotspots. Mr Price said: “For the Welsh Government to even consider the idea of a Welsh tourism tax... is unfathomable to many in Welsh tourism.”
Mr Price said Welsh tourism businesses were still struggling after the pandemic, still had large debts to pay off and now faced increased electric costs, insurance rises, food costs and fuel increases.
“All the other devolved areas – England, Northern Ireland, Scotland – have looked at the idea of a tourism tax. The most recent was Scotland but in the end all have abandoned the idea owing to the potential damage to their tourism industry,” Mr Price said.
“If this Welsh tourism tax does come about, how many of our potential customers will simply vote with their feet and go to Devon, Ireland or Scotland rather than pay yet ‘another tax’ at a time when they are trying to cope with a personal cost of living crisis? The Welsh Government do not seem to realise that there are many other areas of Britain that also have lovely beaches and spectacular mountains. Visit England, Visit Scotland, Visit Ireland must all be delighted that the Welsh Government is proposing to self-inflict such a wound on Welsh tourism.
“Tourism is Wales’ second largest industry and tourists spend on average £8m a day in Wales, and a quarter of all VAT registered businesses are in the visitor economy, hence Wales has much to lose if this tax is implemented, and many tourists then stay away. Surely we need to encourage tourists to come to Wales – not tax them for coming!
“The Sun, Express and Mail newspapers are already having a field day, dubbing the proposed Welsh tourism tax a 'tax on the English wanting to visit Wales'. From the many English contacts I have made in tourism over the years, I gather there is now a growing feeling by some in England that the Welsh Government is anti-English, and also anti-tourism.
“In many Welsh regions, 80% of their visitors come from England. Can Wales really afford to lose this market?”
He added: “The Welsh Government often states that other European areas have a tourism tax. This is correct but, misleadingly, what the Welsh Government do not say, for example, is that France and Spain’s VAT rate for tourism is approximately 10%, not 20% as in Britain. The Welsh Government also likes to show that Welsh tourism compares favourably with other countries like France and Spain.
"However, France has 433 million tourists staying overnight, and Spain 471 million staying overnight. Wales has just 34 million overnight stays. Tourists who stay overnight in Wales spend on average about £190 per day, whereas the day visitors only spend about £30. Therefore, surely we should be encouraging overnight stays, not putting extra tax on tourists supporting the Welsh economy by staying overnight."
The Showcaves' director also said that he didn't think Welsh People realise that the tax will "hit them in the pocket".
"As an example, hen and stag parties staying overnight in Tenby will have to pay this tax, as will any Welsh person staying in a hotel or caravan park. Youngsters in tents will have to pay this tax," he said.
“In fact, this tax will probably hit the lower incomes of many Welsh people far more than the tourist staying in £350-per-night accommodation who will not worry about an additional £15 on their bill. The Welsh Government encourages the myth of ‘over tourism’ in Wales based on the ‘stay at home holidays’ following the pandemic last year. However, it is a fact that in most normal tourism seasons Welsh tourism is only flat out for just over eight weeks a year.
"There are undoubtedly honey spots around certain areas, eg Snowdon, Pembrokeshire, however the Lake District, west coast of Scotland all seem to cope with peak demands much better than we do in Wales. Maybe a way to solve the ‘honey pot’ area problem is to promote the lesser known areas only, eg mid Wales?
“Amazingly, the Welsh Government have not conducted any analytical research into the consequences of such a tax on Welsh tourism, or how much it will cost to implement such a tax, or even what the final revenue might be. To anyone running a tourism business in Wales, the Welsh Government’s lack of any ‘tourism tax research’ should ring alarm bells.
“However, it does not take much intuition to guess that, for many operators, further investment in businesses is now on hold until the consequences of the tourism tax are fully understood.”
Earlier this year, the Welsh Government confirmed a consultation on proposals for a local visitor levy will launch in the autumn. Rebecca Evans, Minister for Finance and Local Government, said in February: “Visitor levies are a common feature in tourist destinations internationally. They are an opportunity for visitors to make an investment in local infrastructure and services, which in turn make tourism a success. Without such a levy, local communities face an undue burden to fund local services and provisions on which tourists rely.
“From keeping the beaches and pavements clean, through to maintaining local parks, toilets and footpaths, the critical infrastructure that supports tourism should be supported by all those that rely on it. The introduction and subsequent use of such a levy would enable destinations in Wales to be enjoyed for generations to come and encourage a more sustainable approach to tourism.
“The levy would be proportionate by design, and powers to raise the levy would be discretionary for local authorities. This would enable decisions to be taken locally, according to the needs of our communities. The levy will apply to those paying to stay overnight within a local authority area.
“Opportunities for wider contributions on the cost impact of other types of visitor activities on local infrastructure will be offered as part of the consultation on the levy.”
A Welsh Government spokesman said: "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 this Autumn.
"The careful process of developing proposals for a levy, translating them into legislation, and then into delivery and implementation spans years, and will be subject to approval by the Senedd.”
