4. Will the Minister outline the Welsh Government's tourism strategy in South Wales West? OQ57280

Yes, our tourism recovery plan, published in March 2021, aims to bridge us back from the pandemic to the overarching tourism strategy, 'Welcome to Wales: Priorities for the visitor economy 2020-2025'. That aims to grow tourism and deliver benefits across the whole of Wales, with environmental sustainability and social and cultural well-being at its heart.

Thank you, Minister, for that answer. You'll know that tourism is a major employer in my region of South Wales West. It creates thousands of much-needed jobs and accounts for around 9.5 per cent of employment across Wales. However, after reading the coalition document agreed between Plaid Cymru and the Labour Party, which was signed today, I see a tourism tax that threatens to punish these businesses is very much still on the cards.

We know this tax would damage local economies and cost livelihoods, hitting taxpayers in the wallet in a time of economic uncertainty. With the industry already facing several issues, from COVID restrictions to the highest business rates in Great Britain, many will find Plaid Cymru and Labour even considering this tax completely unacceptable. The chief executive officer of North Wales Tourism, Jim Jones, described it as not listening to the people whom it will affect the most. He said,

'Back when it was proposed in 2017 it was unpopular. That’s why it was dropped. Nothing has changed.'

Now I read from your coalition agreement that this tourism tax will be rolled up into the local government finance reform legislation, potentially tying it up with local council tax reform and other ways that councils raise revenue. Therefore, can I ask, Minister, what economic impact assessment have you made of a tourism tax on our tourism economy and small businesses? In the light of that coalition agreement signed today, what discussions have you had with the Minister for Finance and Local Government to ensure that those councils that decide not to adopt a tourism tax are not punished financially by other means?

Well, I think there's an inaccuracy—I'll put it that politely—in the way the Member has presented this. The proposals to consult on a tourism levy are part of the manifesto that saw 30 Welsh Labour Members elected by the people of Wales to the Senedd. They already form part of the programme for government, and it's no surprise that they're there within the co-operation agreement that has been signed today.

We've been really clear on several occasions in the past, when the Member and others have asked about this, that we're looking to consult on this during the next year or so. That will be led by the finance Minister, as a potential new addition to taxation policy, and it would be on a permissive basis to give local authorities the ability to use the powers that we're looking to give them.

Now, some local authorities may decide not to proceed with that, and that would be a matter for them. It's a permissive power that we're looking to consult on, rather than requiring people to have a tourism levy. I do think that it's worth considering how people in the sector may see that as being positive, but also how it supports sustainable tourism, with the additional pressure that tourism causes to some communities around Wales and the services that exist for local people who live there year round as well as visitors. We want to have a proper balance in the way that the visitor economy functions, with good jobs year round, improving seasonality and making sure that local facilities and services aren't compromised.

It's worth, of course, noting that every time a Conservative stands up and says that a tourism levy would destroy jobs and be dreadful, actually, tourism levies are entirely normal in many parts of the world, including our near neighbours. Anyone who's holidayed in Spain has almost certainly paid a tourism levy; lots of people who go to France have almost certainly paid a tourism levy at some point. This is really quite mainstream in permitting local authorities to determine if they want to use it and, if so, at what level and for what purpose. It certainly hasn’t deterred Brits from going and travelling to different parts of world to contribute to the visitor economy in other parts of the world. I think this is a very sensible contribution, and it’s one we committed to consult on in our manifesto. It should be no surprise that it appears in the a co-operation agreement signed today.