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Concerns over tourism tax impact on Welsh businesses
Concerns over tourism tax impact on Welsh businesses

South Wales Argus

time25-06-2025

  • Business
  • South Wales Argus

Concerns over tourism tax impact on Welsh businesses

Already dwindling tourist numbers The Wales Tourism Alliance (WTA), which represents businesses and organisations across Wales, has voiced concerns that an additional tax would dissuade tourists from coming into Wales and supporting local businesses. 'The tourism industry as a whole is against levies, full stop,' says Rowland Rees-Evans, WTA chair. 'North Wales, Gwynedd, have been driving [the tax] because they've got certain issues at certain times of the year where they just can't move up there. If you've got too many people, you can charge them all. But the rest of the year and the rest of Wales, we could take more people,' says Mr Rees-Evans, emphasising the need for more tourists to be welcomed into South and East Wales. The same position has been taken by the Welsh Conservative party. 'We need to scrap it' says Gareth Davies, Conservative shadow minister for culture and tourism. Interviewed on-site at a popular South Wales visitor attraction, he explained how the levy will 'eat into profit margins' for businesses, as well as the budgets of those visiting the region. 'It's really going to put people off coming into Wales, where we need to boost tourism numbers which have dropped since covid and haven't been restored.' The number of overnight trips to Wales by domestic tourists in 2019 was 10.7million. By 2022, this number had fallen to 8.7million. Last year, there were 7.6million. Monmouthshire, a popular destination for UK domestic tourists, has felt this impact on a local scale. In 2023, total visitor numbers were down -1.8 per cent from 2022. Popular tourist attractions in Monmouthshire include Chepstow castle, Tintern Abbey and the Old Station at Tintern. The area also welcomes tourists for annual festivals such as the Abergavenny food festival, the Green Man festival and Castell Roc music festival. Despite many Monmouthshire attractions having a daytime-focus, the country relies on overnight visitors far more, with 25 per cent of visitors who stay overnight generating 77 per cent of visitor spend, according to the 2023 tourism performance report. This reliance on overnight visitors makes the area more vulnerable to the proposed accommodation levy, as the additional cost may convince visitors to stay fewer nights, or across the border in England. Hopes of better funding for local services The tax was proposed on the basis that any funds raised can help respond to the costs of tourism and improve facilities for both locals and visitors, such as toilets, footpaths and visitor centres. The bill was informed by Dr Linda Osti's research, which demonstrates how a levy has been successful in other countries including Italy and the US. 'In the destinations we analysed, we couldn't see any decline in overnight stays,' says Dr Osti. 'With a levy, Wales can focus more on improving the services for both the local people and the tourists.'

As Wales imposes controversial tourist tax, could other UK destinations do the same?
As Wales imposes controversial tourist tax, could other UK destinations do the same?

Yahoo

time04-04-2025

  • Business
  • Yahoo

As Wales imposes controversial tourist tax, could other UK destinations do the same?

Wales is set to follow Scotland by introducing a new tourist tax, with more regions around the country planning on implementing a levy for holidaymakers. The Welsh government plan to introduce the visitor levy, or tourism tax, as early as April 2027 following plans in Scotland to introduce similar plans in 2026. The plans have been highly contentious with concerns raised that this will adversely affect the tourism industry and some councils initially opting not to apply the charge. In the Senedd, the Labour Welsh government, Plaid Cymru and the Liberal Democrats all support the plans, which could raise up to £33m a year, according to government figures. Tourism taxes are common in cities and regions across Europe, and the Welsh Senedd is set to vote on the plans, which the Welsh Conservatives oppose, as early as this summer. Critics say holidaymakers will be deterred by the tax, with the Welsh Tourism Alliance Chair Rowland Rees-Evans saying the levy was a 'stressor on an already fragile sector' and not 'in the best interests of our country'. Any tax imposed would be decided on by local authorities who would be given the power to decide whether the visitor levy was right for their area, said the Welsh government. The bill outlines that visitors could pay £1.25 per night for most accommodations, with a reduced rate of 80p for camping pitches and dormitories. One exemption already confirmed is that under-18s staying in hostels, campsites or outdoor centres would be exempt from paying the levy. Mark Drakeford, the Finance Secretary, announced in the Senedd on April 2 that the partial exemption will still see children staying in hotels and B&Bs taxed. And Pembrokeshire council has announced it will not be introducing the tax, in the first instance, recognising that the tourism 'landscape has experienced significant change'. The 22 Welsh councils will have the power to decide whether to introduce a local levy and can only do so after consulting with their local community, the bill states. The Welsh government say the tourism levy could help communities 'respond to the costs associated with tourism'. The Welsh Tourism Alliance say tourism is responsible for over £6.2Bn to Welsh GDP and over 172,000 jobs, with the nation receiving 892,000 visits in 2023, up 30 per cent on 2022. An impact assessment, by the Welsh government, suggests that if all councils adopt the levy, it could generate an estimated £264m by 2035, against total costs of between £313m and £576m. The Welsh government said the money could also 'support the Welsh language and help tourism grow'. 'It will help improve things like toilets, footpaths, beaches, and support visitor centres. This will benefit both visitors and residents,' they said. But critics believe the tax could deter visitors. In a discussion in the Senedd Conservative Aberconwy member Janet Finch Saunders said that her party was "totally against" the tax believing it to be "detrimental to Welsh tourism businesses". Gareth Davies, Conservative member for the Vale of Clwyd, said the tax sends a message to holidaymakers "that Wales is closed for business and tourists are not welcome". The charge will be a per person per night charge and will apply to overnight stays in visitor accommodation, if the local authority has introduced the visitor levy. The charge would apply to all visitors regardless of where they have travelled from. The fee for staying at hotels, B&Bs and self-catering accommodation would be £1.25 originally proposed to £1.30 per person per night. For hostels and campsites it would be 80p per night, with under-18s staying in hostels, campsites or outdoor centres would be exempt from paying the levy. Under-18s staying in hotels, B&Bs and self-catering accommodation, will not be exempt. The levy will not apply if the stay is longer than 31 days, the stay is at an individual's sole or main residence or if the stay is for emergency or temporary housing arranged by the local authority The bill also establishes a new register of visitor accommodation providers operating in Wales. Plans to implement tourism taxes for entire countries or regions and cities, have long been discussed by governments and local authorities for a number of years. As it stands, parts of Scotland could implement the levy as early as July 2026. Their plan is similar to Wales in that specific regions could choose to implement the charge. In Edinburgh a levy of 5 percent on overnight accommodation will be applied to a maximum of five nights, with businesses needing to apply the levy to advance bookings made on or after 24 July 2026. The Highlands, Argyll and Bute Council, and Glasgow City Council are currently in consultation about also imposing a fee. In England, the central government nor local councils have the power to introduce a tourist tax, but cities and regions can introduce a levy on overnight stays through the Accommodation Business Improvement District (BID) model. For example, Manchester has introduced a £1 charge per night using this model and Liverpool could introduce a £2 fee from this summer. Bournemouth, Christchurch and Poole have recently tried to implement a similar levy for tourists and visitors, of around £2 extra for overnight stays, but the process was halted in January this year due to administrative errors. On Thursday (April 3) a new report by the Centre For London argued that allowing the Greater London Authority (GLA) to 'explore the implementation of a Tourist Tax to help invest in London's arts and cultural scene'. They say the tax could help fund the city's creative industries with Mayor Sir Sadiq Khan previously voicing his support for the tax, implemented in other European cities such as Paris, Berlin and Amsterdam. Around the world many cities and regions have introduced the tax as a way of securing more much-needed funds to support governments and local communities. The charge is also used to stem mass tourism like in Venice, and most notably in Barcelona, where locals have protested against costs and housing issues caused by overtourism. A tourist tax is usually a mandatory small daily charge, typically applied to your hotel bill, but can apply on arrival to a country, or region, at borders, airports and ports. The Dutch city of Amsterdam, where a tourist tax has been in place since 1973, has recently raised its tourist tax to 12.5 percent, the highest in Europe. In 2025 the charge is expected to generate revenue of €260m, and is used to finance the use of facilities used by tourists and address local challenges, support green and recreational spaces, and community resources. The money can be used to protect natural environments, like in Bali and Thailand, whilst in Venice this tax has paid for maintenance in the historic city centre. Sir Sadiq has stated that tourists will not be deterred by paying a 'few extra euros' but in Venice in April last year hundreds of locals protested over a new €5 fee. Bhutan has the highest tax in the world, at $100 per day, with authorities using the money for health care, education and infrastructure. The fees raise around $26m yearly, but the Himalayan nation is rarely visited, only receiving around 103,000 tourists, mainly from India, whose citizens do not require a visa. Natalia Bayona, executive director of UN Tourism said: 'Tourist taxes can play a significant role in how destinations manage tourism flows. 'But the implementation of these fees is also designed to deliver more of the economic benefits that tourism offers back to the host communities.' Click below to see the latest Wales headlines

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