Part of 1. 1. Questions to the Cabinet Secretary for Economy and Infrastructure – in the Senedd at 1:50 pm on 11 October 2017.
Well, I wonder what the tourism industry would make of your answer. What I would ask is: what consultation have you done and conducted with the tourism industry or, indeed, were you actually consulted on this by your Cabinet colleagues at all as well? I have to say, the British Hospitality Association has said that a tourism tax will, and I quote, undermine business sustainability, investment and…our employment plans’, as well as be handing an unfair advantage to our competitors in England.’
The BHA, the Wales Tourism Alliance and MWT Cymru, and many other experts across the industry, have said that the prospect of introducing a tourism tax will harm Wales’s competitiveness and heap additional pressure on an industry that already pays tourism VAT and has seen increases in business rates. A day visitor to Wales already spends £17 per head less than in Scotland, £5 less per head than visitors to England. A tourism tax will deter them from visiting and spending here even further. In 2004, an inquiry was undertaken by Sir Michael Lyons that concluded that there was not a strong evidence base to support the introduction of a tourism tax. The Labour UK Government agreed. So, will you now take the opportunity to follow the advice from the industry and rule out the introduction of a tourism tax to provide the industry with the certainty that it needs?