Diolch. There's absolutely no disagreement that tourism provides an absolutely substantial economic contribution to Wales, with tourism-related expenditure reaching more than £5 billion annually in 2019, pre pandemic, and the Welsh Government of course wants to see a thriving tourism industry and a strong recovery from COVID-19. In recognition of the impact of COVID we've provided unprecedented financial support to the sector. Tourism businesses have been eligible for grants from the £2.6 billion economic resilience fund, which has safeguarded 28,500 jobs across Wales. Many tourism businesses have also benefited from the £108 million cultural recovery fund, supporting cultural events and the individuals working in the sector, and tourism businesses have also benefited from the £730 million that we provided through our retail, leisure and hospitality rates relief schemes. These measures, as well as the non-domestic rates-linked grants and discretionary grants delivered by local authorities, have clearly enabled these sectors to survive.

The tourism industry in Wales is in a strong position to recover and rebuild post pandemic. Over the last five years, Wales has welcomed record numbers of UK visitors. Our tourism industry is mature, it's experienced and it still has the capacity to grow, but it has also told us that growth must serve to sustain, not threaten, the things that matter most. Our ambition is to support sustainable tourism development that addresses the needs of visitors, the industry, the environment and host communities, and that's a fundamental principle underpinning our proposal for a tourism levy.

In February I outlined the policy aims and the timeline for the development of tourism levy proposals. Our proposals present an opportunity for investment into those local communities and the services that make tourism successful, and it's only fair that a contribution is provided from visitors. We're at the start of the discussion on how the levy will be used to maintain and support those areas that we visit and enjoy.

Tourism levies, of course, as we've heard, are very commonplace across the world, with most countries in Europe applying them. They're proportionate by design and they represent a small percentage of the overall bill for consumers. There's little evidence that tourism levies have a negative economic impact. They're used to benefit those local areas and communities that choose to use them. The powers will be discretionary, empowering local authorities to make their own judgments and decide what's best for their communities. Of course, I welcome all views and evidence as we continue to work collaboratively with our partners to help shape these proposals. A major consultation will take place later this year, and that will be an opportunity for all views to be heard and considered. Through this process we'll design a tax that's aligned to our core tax principles, and one that works for communities in Wales.

On 2 March I announced the next steps we're taking following the consultation on local taxes for second homes and self-catering accommodation. The steps form part of our plans to ensure property owners make a fair contribution to the communities in which they have homes or run businesses. This in turn is part of our three-pronged approach to addressing the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language. The views conveyed in the consultation, including from the wider tourism sector, clearly support a change to the criteria for self-catering accommodation to be classified as non-domestic. Responses indicated that genuine holiday accommodation businesses would be able to satisfy increased letting thresholds and a wide variety of possible alternatives were suggested. Increasing the thresholds will provide a clearer demonstration that the properties concerned are being let regularly and are making a substantial contribution to the local economy.

Following our consultation, we're of the view that self-catering properties let out on an infrequent basis should be liable for council tax. Increasing letting criteria will ensure that such properties are classified as non-domestic only if they're being used for business purposes for the majority of the year. I therefore announced our intention to amend the criteria from 1 April 2023 and now have launched a technical consultation on the draft legislation. That consultation did close on 2 April and the responses are currently being analysed. And I intend to publish a summary of those and announce the next steps soon. 

When the legislation is made, subject to any changes arising from the consultation, it will be accompanied by a regulatory impact assessment, and I do thank the Wales Tourism Alliance and other representatives for providing us with additional information, and we will be taking that into account in the impact assessment.