Plans for a new tourism tax in Wales are moving forward, the Welsh Government has confirmed. Legislation enabling local authorities to introduce a visitor levy in their areas will be put to the Senedd within this government term which ends in 2026.
It comes after a public consultation, which ended in December of last year, found that a majority of respondents, which stood at 58%, agreed that tourists should contribute towards the costs of maintaining and investing in the destinations they stay in. The findings of the consultation, which were published on Thursday, found that support for a levy was strongest in areas that attract the most tourists, with two thirds of people in Wales who reported that they live in areas that had a lot of tourism back the introduction of a visitor levy.
The controversial levy will be a small charge paid by people staying in commercially-let overnight visitor accommodation, the Welsh Government has said. Similar charges are commonplace around the world, used in more than 40 destinations including Greece, Frankfurt, Amsterdam and Catalonia - although tourism groups say they all have far lower VAT rates for their tourism sectors.
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Under the new plan, local authorities will decide whether to introduce a levy and the funds raised will be used to benefit local areas. Over recent months, the plan has found support across most local authorities and across other organisations, but many responses also came from representatives of the tourism industry, with many disagreeing with the principle of a visitor levy. The Welsh Conservatives have also expressed strong opposition to the scheme.
Rebecca Evans, Minister for Finance and Local Government said: "As the Easter break approaches and many parts of Wales prepare to welcome visitors from around the world, it’s more important than ever that we look to create a sustainable tourism sector that also supports local communities. Over the coming years, we will continue to work with businesses, local government and all our partners to design a levy that will put power into the hands of local communities." For the latest news on Welsh politics sign up to the Wales Matters newsletter here
She added: "We understand some businesses have reservations about a visitor levy and I am grateful to all those who took the time to respond to our consultation. These responses will be carefully considered as we continue to develop our specific plans for a levy. Many destinations around the world use visitor levies to empower and enhance their local areas for the benefit of visitors and locals alike – I am confident this will be the case here in Wales."
Proposals for a visitor levy have been progressed through Welsh Government’s Co-operation agreement with Plaid Cymru. Plaid Cymru Designated Member Cefin Campbell said: "We want Wales to have a thriving, sustainable tourism sector and the visitor levy will play a part in achieving this. Our aim is to develop responsible tourism that works both for visitors and for the communities they are visiting. Local authorities will be able to introduce a small contribution from visitors enjoying their area to help develop and protect local services and infrastructure."
But Welsh Conservative Shadow Minister for Tourism, Tom Giffard MS, said: "Nothing says welcome to Wales more than Labour announcing they will be pressing ahead with their toxic tourism tax as families gear up for the Easter holidays. As ever the devil is in the detail with these consultations and we know that it is unlikely the proceeds would be used to improve local tourism economies, in fact Adam Price said it would be used for other vanity projects, so it's highly likely our local communities won't see any benefit.
"Tourism supports 1 in 7 jobs in Wales enabling people to pay council tax, helping to tackle the issues that Labour claim a tourism tax would fix. The Labour Government should be working with the industry to boost this vital sector instead of taking a sledgehammer to crack a nut."
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