I’m grateful for this opportunity to speak against the introduction of a tourism tax in Wales. I do so because I believe a tourism tax would have a severe and adverse impact on the economy of my region. South-east Wales is a major destination for tourists from both the United Kingdom and from overseas. Six years ago, we put in this Chamber the Enterprise (Wales) Bill, and we emphasised very strongly to improve our tourism, and also, since 2010, the Ryder Cup, NATO, and also our football team and FIFA, have improved tremendously the visitors from abroad and the other side of the channel that come in.

Indeed, in 2014, south-east Wales was the second most popular destination for domestic overnight trips in Wales. Spend on these domestic overnight trips stood at £361 million a year. In 2014, there were also 441,000 international visits. Half of all international visits to Wales in 2012 to 2014 were made in South Wales East. Forty-seven per cent of all spend on international visits to Wales was spent in my region. Day visits are also popular there. There were 39 million day visits to Wales in 2014, accounting to over 40 per cent of all Wales day visits.

Deputy Presiding Officer, south-east Wales contains some of the poorest communities in the United Kingdom. Unemployment and deprivation remain stubbornly high. About one in 11 jobs in the region is accounted for by the tourism sector. I believe the tourism sector would be hard hit by the introduction of a tourism tax by this Government.

Just a few months ago, the UK Government announced that tolls on the Severn bridge between Wales and England will be scrapped by 2018. A study commissioned by the Welsh Government suggested that the removal of tolls would boost the Welsh economy by £100 million. No wonder Welsh businesses in the tourism sector have already expressed concern that a tourism tax could have a devastating effect on their industry and deter visitors from coming to Wales. That is without the knock-on effect on pubs, shops, cafes and visitor attractions in different areas, including our beautiful churches and beautiful scenery all over. They rely on this trade. It is also undermining a campaign by Visit Wales to promote Wales as a tourist destination.

But this is not the only Welsh Government strategy that will be hindered by this approval. ‘Our Valleys, Our Future’ is the Welsh Government strategy to deliver real change for the South Wales East Valleys. One of its priorities is to do more with the Valleys’ natural environment, its culture and heritage, so they can be more widely enjoyed by local people and those living further afield. It goes on to say:

The Valleys will be a recognised tourist destination, attracting visitors from across Wales, the UK and beyond.’

I ask the Welsh Government, in all honesty, whether a tourism tax will help or hinder the delivery of the aims of this strategy—all their strategies. A tourism tax was introduced in Ibiza and Majorca in 2016. I urge the Welsh Government to look at those consequences. Thomas Cook slammed its introduction, and the word is a ‘significant extra sum’ on family holidays. That would persuade many families, for holidays, to go somewhere else, not Wales. The Majorca Hoteliers Federation said the tax would lead to ‘millions in losses’ for the island’s economy. Wales cannot afford to increase the burden on our tourism industry and deter people from coming here. I hope Welsh Government will think again and again, and withdraw this damaging and potentially disastrous tax.

I think it’s about time that we should understand that, to increase our economy, there’s no point in increasing taxes. There are other areas that Government is looking at, of which four areas have been mentioned: water tax, sugar tax, land value tax, and there are other areas to look at, and I think, if you ask the public, they’d give you certain areas where tax can be raised, not on tourism. Thank you.