A proposed tourism tax in Wales could end up costing families an extra £60 per week, according to a Conservative Senedd member. Peter Fox, the Monmouth MS, raised concerns in a recent Senedd debate, stating that the visitor levy planned by the Labour-run Welsh Government could deter visitors from choosing Wales as a holiday destination. The proposed tax would allow councils in Wales to charge tourists, both local and international, up to £1.25 per person per night to stay in the country.
Under the Labour bill, two levels of charges would apply – 75p per person per night for those staying at campsites and hostels, and £1.25 per person per night for those in other types of accommodation. If all 22 councils in Wales implement the tax, it could potentially raise £33m annually. The revenue generated would be allocated towards funding services such as street cleaning, waste collection, maintaining amenities, and preserving natural and cultural attractions across Wales.
Mr. Fox highlighted that the additional cost could have a significant impact on families, particularly those with children. He pointed out that a family of six staying in a guesthouse could incur an additional expense of over £60 for a seven-day break, once VAT is factored in. He also expressed concerns about the potential variation in charges across different areas of Wales and the risk that the tax revenue might be diverted from its intended purposes.
While some argue that a visitor levy could contribute to improving tourism facilities, Mr. Fox cautioned against imposing what he termed as “double taxation on hard-pressed families.” He noted that other countries utilise visitor levies to fund tourism-related projects, but the comparison may not be straightforward due to differences in taxation systems. The Senedd member emphasised the need for a comprehensive assessment of the implications of the proposed tax on both visitors and the tourism industry in Wales.
The Welsh Government defended the introduction of the visitor levy, stating that it aims to promote a fairer and more sustainable tourism sector where the costs and benefits are shared by all. They believe that asking visitors to make a small contribution towards tourism-related expenses is reasonable. However, with concerns raised about the potential financial burden on families and the broader economic implications, the debate over the tourism tax in Wales continues to provoke discussions among policymakers and industry stakeholders.
In light of the ongoing deliberations, the decision on whether to implement the tourism tax will ultimately rest with each local authority in Wales. The outcome of this debate could have far-reaching consequences for the tourism industry, as well as for families and businesses involved in the sector. As the discussions unfold, stakeholders on all sides will need to consider the balancing act between generating revenue for essential services and ensuring the affordability and attractiveness of Wales as a holiday destination.