The Labour-controlled Welsh Government say its proposed visitor levy will help support a thriving, sustainable tourism industry in Wales by giving councils the choice to introduce a small additional charge on overnight stays in their area which would be re-invested in tourism.
The Welsh Conservatives oppose the concept of a Tourism Tax and say they will vote against, but have also put forward a series of amendments to the Bill to reduce its scope and impact, including exemptions and levy reductions.
The Bill to introduce the visitor levy reaches its third stage in the Senedd today (1 July).
The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill proposes people staying overnight in Wales and enjoying everything the country has to offer will pay a small charge. All the money raised will support local tourism activity and infrastructure.
The tax will be £1.30 per person per night in a hotel in Wales, but can be increased by councils, given the provision of an unlimited “premium which may be added”
The Bill has already been amended so under-18s will no longer have to pay the levy when staying in hostels or campsites.
The rate for those staying in hostels and on campsite pitches (aged 18 and over) will be 75p per person per night (the lower rate) and the rate for people staying in all other accommodation types will be £1.30 per person per night.
Speaking ahead of the debate, Finance Secretary Mark Drakeford said: “The visitor levy is a small contribution that could make a big difference if councils choose to introduce it in their local areas. We think it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience.
“Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.”
The Conservatives meanwhile maintain that the tourism tax would further push visitors away and put jobs at risk.
Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: “Labour and Plaid’s toxic Tourism Tax will devastate the sector; it must be axed.
“The Welsh Labour Government’s own figures project up to £576 million in economic damage over the next decade and hundreds of potential job losses annually as a result of their so-called ‘visitor levy’, which enjoys full support from Plaid Cymru and the Lib Dems.
“Welsh Conservatives are clear: we will be voting against this act of economic self-harm today, because the sector deserves to be supported not hit with a new tax.”
