Part of the debate – in the Senedd at 3:35 pm on 27 April 2022.
I would like to refer Members to my own stated declarations of interest.
For years, Welsh Labour has undercut and undersold tourism here in Wales. A major sporting nation, with grand national parks, spectacular coastlines, bustling bars and restaurants in our towns and cities, Wales represents a corner of the United Kingdom like no other. But poor policy direction from Welsh Labour will continue to threaten communities in Wales, and, if unchampioned, the people of Wales could face the slowest recovery from the COVID-19 pandemic in the isles. If the past two years have shown anything, it is that the tourism industry and the people who work in these sectors are resilient, and they are themselves committed to building a bigger, better Wales. It has to be said that that's more than what can be said for this sleepy and dreary Welsh Labour Government in Cardiff Bay.
The First Minister and his colleagues have recently been boasting about their commitment to rebuilding the tourism sector. However, as always, actions speak louder than words, and what we are witnessing is an erosive strategy. If the Welsh Government expressed any interest in backing our tourism sector, they would abandon damaging proposals for a tourism tax in Wales. They would acknowledge the majority of responses to its consultation—yes, there's already been a consultation—on a tourism tax, and also opposing the proposed non-domestic rates changes for holiday lets. They need to acknowledge that they've simply failed to lift the industry to levels seen elsewhere across the UK. Perhaps the Minister needs reminding—in fact, I think the Welsh Labour Government needs reminding—that it is lower taxes that attract entrepreneurialism and business investment. This then ensures that the public services that are now so in decline in Wales, as Carolyn has mentioned—. You know, if we have a better private sector, with better business, paying taxes—natural taxes that are already set, not introducing new ones—then there's more money in public services.
You are also pursuing a tourism tax at a time of a return to 20 per cent VAT. All the other countries that have been mentioned, where they have a tourism tax, they do have lower thresholds of VAT. The hospitality industry simply cannot survive all of this. It is an onslaught of epic proportions, and it is a complete misunderstanding of the tourism sector. I have to say, I really like my colleague Luke Fletcher, but his anti-visitor, anti-tourism rhetoric is now actually starting to feed back to businesses in his constituency, and it is now becoming a fact that the industry itself see Plaid Cymru, and sadly now Labour, as being enemies to the tourism industry.
The Welsh tourism industry is largely made up of microbusinesses and small and medium-sized enterprises. The sector is vitally important to rural communities as well as urban economies, enhancing the provision of facilities and amenities, which are accessed by residents and visitors alike. In Wales, 25 per cent of registered businesses are in the visitor economy. They offer significant employment opportunities where alternatives are very limited. Here in Conwy county, tourism is worth £887 million, generated from 9.5 million visitors annually. The impact of COVID has already left its toll on businesses in the Aberconwy area, with losses of revenue ranging from around 60 per cent to 85 per cent.
In addition to supporting around 10,000 jobs in Aberconwy through furlough, the UK Conservative Government is further investing in the local economy, especially tourism, such as £51,000 in the Llandudno bay promenade enhancement, £219,000 in the Conwy culture strategy development, and £850,000 in a tourism innovation hub. Whilst the UK Government is investing in the Welsh tourism sector, I'm afraid the Welsh Labour Government are seeking to punish it. It's common economic sense to abandon the damaging proposals for a tourism tax in Wales. We also need to scrap the proposed 182-day threshold for holiday lets. We should all be working with businesses to see what support they need to keep creating jobs and sharing the best of Wales with the world. UKHospitality Cymru's executive director David Chapman, said:
'This industry needs more TLC and less taxes. After two long years of commercial instability, with enforced closures and restrictions, we are now facing a costs and viability crisis and the last thing that we need is even more taxation.'
Post pandemic—