Tourism Tax

2. Questions to the Minister for Economy – in the Senedd on 11 May 2022.

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Photo of Darren Millar Darren Millar Conservative

(Translated)

7. What assessment has the Welsh Government made of the economic impact of a tourism tax in north Wales? OQ58001

Photo of Vaughan Gething Vaughan Gething Labour 2:55, 11 May 2022

We are engaging with a wide range of partners to understand the impact of a tourism levy, including tendering for independent economic research. Individual local authorities will be empowered to decide if they will raise a levy in their areas, with the support of the Welsh Government and the proposal that the Member is aware of, indeed, and has asked previous questions on.

Photo of Darren Millar Darren Millar Conservative

Thank you for that response. You'll be aware that there's a great deal of concern in north Wales about these proposals for a tourism tax on the economy. Many tens of thousands of jobs across the region rely on the tourism industry and visitor spend. One of the strange things that people have suggested that the Welsh Government need to listen to is the fact that the majority of spending is from overnight stays. Those who stay overnight spend more in the Welsh economy. What your proposals are actually going to do is to penalise people who want to stay overnight. It's not going to make much difference to the day visitor market. Do you accept that overnight taxing of individuals who want to visit Wales to spend in our economy could actually do a lot of damage to our tourism sector, and if the economic assessments that you are commissioning demonstrate that that will be the case, will you reverse this decision to introduce these appalling taxes on what is a very important part of the economy in my constituency and region?

Photo of Vaughan Gething Vaughan Gething Labour 2:57, 11 May 2022

As the Member knows, this was part of our manifesto that people in Wales voted upon just a year ago. It's also a part of the co-operation agreement we have with Plaid Cymru, and Cefin Campbell is indeed the designated lead Member on this. We're drawing on international experience as well as engaging with the local tourism industry, academics and experts to support the development of the levy. As we have gone through on previous occasions and, I know, in your previous questions, levies of this type are a common feature in a range of areas that Members across this Chamber will have visited, across Europe and North America. You probably don't know that you're contributing to a local levy and that that is then being used to invest in those local communities, to further enhance not just the experience of the visitor but also the impact upon the community itself.

A full consultation on the proposal is planned for this autumn to ensure that all voices are heard to inform the design and implementation of a tourism levy. I don't accept the Member's repeated doomsday predictions for a tourism levy and its impact on the economy. I have a great deal more faith and optimism about the future of our tourism economy and the ability to have a tourism economy that will continue to employ people on good rates and not to have a significant or detrimental impact on the community in which tourism takes place.