The chairman of the Commons Welsh Affairs Committee has criticised the Welsh Government’s proposed “tourism tax”. Stephen Crabb, a Conservative former cabinet minister and the MP for Preseli Pembrokeshire in Wales, said such a levy would be the “very last thing” businesses need.
Treasury minister Victoria Atkins attempted to draw a distinction from the Conservative Government in Westminster, pointing to tax relief and the so-called Brexit pubs guarantee, adding Welsh Labour “wants to call last orders and to have higher taxes”.
The Labour-led Welsh Government has put forward proposals for a “discretionary visitor levy”, which would empower local authorities to impose a “small charge” on tourists staying overnight in commercially-let accommodation such as hotels, Airbnbs and bed and breakfasts.
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Similar charges are already in place in more than 40 destinations such as Greece, France, Amsterdam, Barcelona and the US state of California. Mr Crabb was speaking in the Commons during a session of questions to Treasury ministers, and said “a great many” of the “new job opportunities and career paths” being created in Pembrokeshire are being created in the tourism and hospitality sector.
He said: “The very last thing that business people who are creating those growth opportunities need right now is a tourism tax of the kind being brought forward by the Welsh Labour Government in Cardiff that will hit these businesses with new burdens and raise the cost of going on holiday in Wales”.
Treasury minister Ms Atkins said: “He is quite right to identify how the Conservatives in Government are trying to help these businesses through our business rates relief in England, through our energy support scheme over recent months, and of course through the Brexit pub guarantee.
“Welsh Labour on the other hand wants to call last orders and to have higher taxes for those businesses he’s so keen to support.”
A Welsh Government spokesperson said: “Visitor levies are commonplace across the world, with revenues used to the benefit of local communities, tourists and businesses.
“Our plans would allow local authorities to decide if they want to introduce a levy, based on the needs of their areas. The levy could make a real difference by generating new revenue to develop and enhance local services and infrastructure.
“We are ambitious for Wales as a tourist destination and will continue to work with communities, visitors and businesses to achieve sustainable growth for tourism across Wales.”
