Finance Minister, Rebecca Evans (Lab, Gower), has confirmed that a consultation on the introduction of a tourism levy is set to take place in autumn 2022 following a request for an update from Sarah Murphy MS (Lab, Bridgend).
At the moment, the plans are for the tourism levy to be set by local authorities.
Porthcawl is particularly reliant on tourism and Sarah Murphy believed the issue was being “politicised and used to spread misinformation”. While the pandemic had presented opportunities to strengthen tourism, key facilities like public toilets and museums have been closed due to funding cuts over several years.
Did the Minister agree that a tourism levy would allow communities to invest in tourist facilities without the cost burden falling on residents?
“Yes, definitely. So, for those authorities that do decide they would like to raise a visitor levy, it will provide them with additional revenue for their communities to invest in the conditions that make tourism a success, and I think that a proportionate and fair contribution from visitors will support a more sustainable approach to tourism that we have here in Wales.”
– Finance Minister, Rebecca Evans
Repeating what was said at the end of 2021, the Minister defended tourism levies due to them being “normal in many parts of the world” meaning the UK was behind the curve.
Taking a very different view was Tom Giffard MS (Con, South Wales West) – whose term as a Bridgend county councillor is coming to an end and who’s raised his opposition to a tourism levy previously.
He was surprised that two members who represent areas reliant on tourism would advocate a tourism tax. He was “only too aware” of the negative impact the tax would have on visitors across his region. Businesses don’t support it and neither do residents.
He went on to say that while a lot of discussions have been around councils using the levy to increase spending on tourism, there were no assurances that councils would use the tourism levy to cut existing tourism budgets instead.
The Minister accepted there was still a lot to be figured out on how the levy would work – and that’s the reason for the consultation. There will be plenty of opportunities for Senedd members and tourist businesses to make their views clear and help flesh out the details.
