Tom Giffard MS (Con, South Wales West) has warned that a proposed tourism levy – included as part of the recent Labour-Plaid Cymru co-operation agreement – would “damage local economies and cost livelihoods”.
In questions to the Economy Minister, he said that tourism accounts for 9.5% of employment in Wales and a tourism tax would “punish businesses” that were still recovering from the pandemic.
The idea of a tourism tax has been raised previously in the Senedd but was dropped. Since then, several local authorities across the UK are considering introducing their own tourism tax. It’s usually a small add-on per night to hotel bills.
The Labour-Plaid agreement says a tourism levy would be considered as part of a wider review and reform of local government finance.
Tom Giffard asked what economic impact assessment the Welsh Government has made concerning the levy? Also, what discussions had taken place with councils to ensure that those who decide not to introduce a levy aren’t punished financially?
The Economy Minister, Vaughan Gething (Lab, Cardiff S. & Penarth), said a tourism levy was already part of the programme of government introduced following the 2021 Senedd election and was included in the Labour manifesto (which is true). It shouldn’t be a surprise that it’s included in the agreement.
He clarified that if a tourism levy was introduced, councils would be able to opt-in or opt-out as they please.
“Now, some local authorities may decide not to proceed with that, and that would be a matter for them. It’s a permissive power we’re looking to consult on, rather than requiring people to have a tourism levy. I think it’s worth considering how people in the sector may see that as being positive, but also how it supports sustainable tourism, with the additional pressure that tourism causes to some communities around Wales and the services that exist for local people who live there year-round as well as visitors.”
– Economy Minister, Vaughan Gething
A consultation on a tourism levy is expected “during the next year or so”.
The Minister went on to say that tourism levies were “entirely normal in many parts of the world” – anyone who’s visited Spain or France will have paid it and it hasn’t deterred people from the UK travelling there.
