Mark Drakeford, the Welsh First Minister, has declined a request to amend the proposed tourism tax plans by excluding children. The tourism tax is set to be implemented in 2027, subject to individual councils in Wales opting to adopt it. The levy, which is estimated to range between 75p and £1.25 per night, will apply to visitors of all ages. Mr. Drakeford defended the decision not to exempt children from the tax, citing concerns about a potential drop in revenue if certain groups were excluded. He emphasised the importance of maintaining a broad tax base to ensure the sustainability of the levy.
During a session with the Senedd’s finance committee, Mr. Drakeford addressed criticisms of the tourism tax, which suggested it could lead to job losses and economic setbacks. He acknowledged the complexities outlined in the economic impact assessment conducted by Cardiff University professor Calvin Jones. The report highlighted potential job losses and adverse effects on the Welsh economy, raising concerns about the implications of the proposed levy. However, Mr. Drakeford urged caution in interpreting the report, noting that it presented a range of possibilities rather than definitive predictions.
Despite reservations expressed by industry representatives and concerns about the timing of the levy following the pandemic, Mr. Drakeford defended the proposed tourism tax. He assured that there would be a lengthy lead-in period before any council could introduce the levy, mitigating immediate impacts on businesses still in recovery. The First Minister downplayed suggestions that families might be deterred from holidaying in Wales due to the additional nightly charge, arguing that other factors would have a more significant influence on travel decisions.
Mr. Drakeford outlined the key elements of the visitor levy bill, which includes provisions for councils to consult on its implementation and report annually on the use of generated revenue. He emphasised the transparency of the process and dismissed concerns about potential misuse of funds. Additionally, he indicated plans for a subsequent bill on licensing accommodation, reinforcing the government’s commitment to regulating the tourism sector effectively. The First Minister underscored the gradual and consultative approach to implementing the levy, aiming to minimise disruptions to the industry.
While acknowledging the diverse perspectives on the tourism tax, Mr. Drakeford remained steadfast in his support for the proposed levy. He cited precedents in other European countries where similar levies had been successfully implemented, with minimal impact on visitors. The First Minister reiterated the importance of a broad-based tax system to ensure the viability of the levy and generate necessary revenue for local authorities. By addressing concerns and outlining the government’s rationale, Mr. Drakeford sought to reassure stakeholders about the long-term benefits of the proposed tourism tax in Wales.