5. Welsh Conservatives Debate: Tourism

Part of the debate – in the Senedd at 3:46 pm on 27 April 2022.

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Photo of Natasha Asghar Natasha Asghar Conservative 3:46, 27 April 2022

I feel like I need to take a breather after that. Okay. First, let me begin by saying Wales has a unique landscape, a unique history and a unique culture. For years, especially during the lockdown, and recently over the Easter break, all of us saw visitors arrive in Wales to enjoy our mountains, our countryside and our beaches. Many come to Wales to visit our castles, our historic houses, as well as our gardens and our industrial heritage sites. They come to enjoy our vibrant culture, our arts festivals, music festivals and our eisteddfodau.

The importance of the tourist industry to Wales cannot be overstated. There were 143,500 people in Wales working in tourism-related industries in 2020, down from 154,000 the previous year. One in seven jobs in Wales is in tourism-related industries, and in some parts of Wales it is the mainstay of the economy. It would be wrong to regard tourism as a second-class service. Tourism is a fiercely competitive market requiring skills, talent and enterprise. Prior to the pandemic, it contributed to 6 per cent of all gross value added, over £3 billion to the Welsh economy. Given these figures, the importance of tourism is clear. It should also be clear that, with Wales's tremendous assets, the potential for growing this sector of the economy should be given a high Government priority.

No-one can deny that the tourism sector suffered significantly from the pandemic, from lockdowns, travel restrictions and the forced closure of hotels, hospitality and visitor attractions. The industry does need support and encouragement to maximise its recovery and exploit the enormous potential for growth that still exists. The last thing they need is for the Welsh Government to hinder their recovery by putting barriers in their way. Instead of marketing Wales positively and encouraging more visitors to come to Wales, the Welsh Government is planning to introduce a damaging tourism tax.

There are significant concerns from within the industry regarding the implementation of such a tax, and many questions do remain. These were highlighted by the all-party parliamentary group on hospitality in May 2019. They asked how would a levy be effectively charged in the absence of a comprehensive register of the supply of accommodation. They went on to point out that the day visitors spend significantly less in comparison to overnight visitors and a further cost on hotel rooms could disincentivise taking overnight trips. This would be bad for the hotel industry and could see a significant reduction in consumer spends within cities.

I'd like to hone in on what my colleague Janet Finch-Saunders mentioned when she was making her contribution, that the UK already has one of the highest taxed hotel sectors compared to countries in the EU. Countries in the EU that have a tourist tax have reduced rates of VAT, with Italy and France on 10 per cent, Germany at 7 per cent, Belgium and the Netherlands at 6 per cent. In comparison, VAT on the hotel sector here in the UK is 20 per cent. I would also like—[Interruption.] I would—[Inaudible.]

I would also like the Minister, when replying—in my role as shadow transport Minister—to rule out the introduction of congestion charges here in Wales, as this causes me concern, not just for visitors but for Welsh residents who simply want to take their family for a short vacation to another part of Wales. Because congestion charges would not only impose a burden on Welsh residents but add an additional burden on tourists coming into Welsh towns and cities, ultimately damaging the prospects of recovery for businesses that rely on tourists to survive. 

Deputy Presiding Officer, without a doubt, tourism is a key part of the Welsh economy and ensuring that it's in good health is essential. We have a responsibility here as politicians in the Senedd to support the sector right here, right now. It was a sector of industry particularly hit badly by the pandemic and does not need the imposition of unnecessary barriers in its recovery. I call on the Welsh Government here today to drop any plans for a tourism tax and congestion charges, and instead produce a strategy alongside key stakeholders that will address these problems and will allow this vital sector of our economy to grow and thrive as it so rightly deserves, having suffered so much in the past. Thank you so much.