The Tourism Sector

1. Questions to the Minister for Economy – in the Senedd on 23 March 2022.

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Photo of Sam Rowlands Sam Rowlands Conservative

(Translated)

5. What action is the Welsh Government taking to support the tourism sector? OQ57830

Photo of Vaughan Gething Vaughan Gething Labour 1:58, 23 March 2022

Our strategy, 'Welcome to Wales: Priorities for the visitor economy 2020-2025', sets our vision and ambition for the sector. We also, of course, have the shaping the vision recovery plan published a year ago. In the budget for 2022-23, we've indicated an allocation of £47 million over three years to deliver on those priorities.

Photo of Sam Rowlands Sam Rowlands Conservative 1:59, 23 March 2022

Thank you, Minister for your response and, as I'm sure you'd agree, the tourism sector is so important here in Wales, and that's why it's a pleasure to chair the Senedd's cross-party group on tourism. I look forward to seeing many Members attending the meeting next week.

But Minister, as you'll know, Wales welcomes around 11 million overnight domestic visitors, 87 million day visitors, around 1 million international visitors in normal years, and these people come to our country, spend their money, support local jobs and enjoy all that we have to offer, and, in my own patch in north Wales, this sector is worth around £3.5 billion a year to our economy.

One of the big concerns that the tourism sector are sharing with me is the Government's latest council tax empty dwellings regulations, and specifically the criteria for self-catering accommodation being aligned with business rates instead of council tax and the changes that would take place there, with properties now needing to be let for 182 days, which is a 160 per cent increase, and available to let for 252 days, which is an 80 per cent increase and, confusingly, quite different to HMRC's definition in terms of tax purposes. Many people in the tourism sector—

Photo of David Rees David Rees Labour 2:00, 23 March 2022

You will need to ask your question now, please.

Photo of Sam Rowlands Sam Rowlands Conservative

I'll come to it now. Many people in the tourism sector are shocked by these changes, and see them as being detrimental to their livelihoods. So, Minister, do you think these changes are good for the sector?

Photo of Vaughan Gething Vaughan Gething Labour

Well, there was significant comment on exactly this subject yesterday with my colleague the Minister for Finance and Local Government, and in questions elsewhere. Look, I've actually met the visitor economy forum today and this is a subject they've raised. There are concerns around a number of areas. The challenge though is the balance in what we're trying to do, and the balance in what we're trying to do to have a successful and healthy visitor economy, with decent jobs and decent wages, that doesn't have an unacceptable impact on communities that host parts of the visitor economy as well. And the balance in all of this can't be struck successfully if we do nothing and simply carry on as we are. So, we'll continue to engage with all those businesses in the visitor economy. What we won't do is pretend that just business as usual, as it is now, is going to deliver the successful future we all want to see. And when you're in Government, you have to decide and you have to make choices about how that balance is going to be struck. I'm optimistic that we are on the path to another successful season for the visitor economy here in Wales, and more to come for both domestic and international visitors.