6. Will the Minister provide an update on plans to enable local authorities to raise a tourism levy? OQ57569

Yes. Policy development has commenced and discussions are under way with local authorities. A consultation will take place in autumn this year, enabling all views to be considered on the operation of a visitor levy.

Thank you, Minister. I could understand if you were getting a little fed up with being asked about a potential tourism levy, especially as the Welsh Government, as you said, is planning to do a consultation starting this autumn. However, the issue continues to be politicised and used to spread misinformation in my community of Bridgend and Porthcawl. I will support my constituents in whatever they decide when they get to voice their views on a potential levy, but I want the people in my community to be able to make a decision based on facts and fairness. The pandemic has identified an opportunity to strengthen local tourist economies, such as Porthcawl in my constituency, yet we cannot ignore the fact that a decade or more now of Westminster austerity has seen closures of public toilets, museums and local amenities that we need to welcome tourists without putting extra pressure on the residents and businesses. Does the Minister agree with me that a tourist levy could provide an opportunity for the community to invest in tourist attractions and public facilities without the burden falling on the residents to pick up the bill?

Yes, definitely. So, for those authorities that do decide that they would like to raise a visitor levy, it will obviously provide them with additional revenue for their communities to invest in the conditions that make tourism a success, and I think that a proportionate and fair contribution from visitors will support a more sustainable approach to tourism that we have here in Wales. And of course, tourists do use infrastructure, they use services and so on, so I think that making a contribution to the maintenance and the expansion of those is a fair thing to do. And actually, what we're promoting isn't even radical; it's completely normal in many parts of the world, and, actually, in Europe, not having any tourism levies or visitor levies across the United Kingdom actually makes us outliers on this agenda. We're very much, as the UK, behind the curve on this, but Wales is absolutely keen on embracing the opportunities that lie here.

I think the fact that you've referred to consultation is really important. So, we've done some initial engagement with local authorities, but it's the intention to really engage widely now, as we get to the autumn of this year, to ensure that we do hear the voices from the tourism sector, in particular accommodation and so on, so that we can ensure that what we offer local authorities as a tool is one that is useful and proportionate.

Diolch, Llywydd, and I'll want to start by reminding Members of my interest as a sitting councillor at Bridgend County Borough Council. But I have to say it's surprising for me to see both the Minister, who represents the constituency of Gower, and Sarah Murphy, who tabled this question, whose constituency covers Porthcawl, both advocating for a tourism tax today. Being a regional Member for South Wales West, representing both those communities, I'm only too aware of the negative impact that a tax like that would have on visitors to communities like Porthcawl, Mumbles and Gower. Businesses in those areas don't support it and neither do local residents. But one of the main arguments I've heard from Welsh Government Ministers and other proponents of a tourism tax is that any money raised should be then protected to boost tourism spending in their local areas, and I note, from an answer to a written question in December from my colleague Janet Finch-Saunders, you, Minister, said that, quote:

'Funds raised by the levy will be invested back into the local services and provisions which make tourism a success in Wales.'

End quote. But, at present, we haven't seen anything that would prevent councils from reducing existing tourism budgets after introducing a tourism tax either, so what mechanisms are you currently considering to ensure that councils do not replace the income generated by a tourism tax with decreased existing council spending on tourism?

I think the beginning of the question there was set on a premise that the evidence just doesn't support. So, there's no evidence to support that tourism levies are a major barrier to tourism. Why would most of northern Europe be having tourism levies if they were such a detriment? Why would some of the biggest tourist hotspots in the world be having tourism levies if they were not successful in terms of maintaining sustainable tourism in those areas?

So, the very detailed question you ask is, quite rightly, one that will follow from the consultation. So, there's a lot that is yet to be determined in terms of precisely what will happen to the funding that is raised and precisely which types of accommodation are in scope and so on. So, at the moment, we're setting out our broad plans, and the consultation will be an opportunity to drill down a bit deeper into how we design a potential levy in future. So, there will be plenty of opportunities for colleagues across the Senedd to engage with the consultation process, as there will be for tourism businesses in all of the communities that you referred to.