The next item is the statement by the Minister for Finance and Local Government on a visitor levy consultation. I call on the Minister to make her statement—Rebecca Evans. 

Today, I'm pleased to announce the launch of a public consultation on enabling local authorities to raise a visitor levy. The proposals set out in the consultation have been developed with Plaid Cymru as part of the co-operation agreement. Our collective ambition is to grow tourism for the good of Wales with economic growth, environmental sustainability and social and cultural well-being at the heart of that ambition. We are working together to ensure our local communities are given the support and the tools that they need to thrive.

Wales is not alone in pursuing this approach. Over 40 countries have visitor levies in place, including Greece, the Netherlands, France and New Zealand. Many of us will have paid a levy when traveling abroad, and some will have done so without even noticing. Across the world, more and more destinations are opting to use visitor levies to enhance local services and infrastructure. These taxes can enable a more sustainable form of tourism. Following a call for public ideas for new taxes in 2017, it was suggested that a visitor levy be considered. We are now taking forward this idea through our programme for government commitment.

Local taxes support the funding of local infrastructure and services, from keeping beaches, footpaths and coastlines clean to providing local transport infrastructure and maintaining areas of natural beauty. These are vital ingredients for successful tourism destinations. Is it not fair that visitors should make a small contribution to these costs? This is an increasingly common and well understood approach, which more and more places are looking to adopt. Revenues raised from a levy could provide additional funds to safeguard local areas for future generations. Within the UK, Wales might be one of the first places to introduce a visitor levy, but I doubt it will be the last. Other parts of the UK have actively called for similar powers to be introduced, recognising the benefits a levy can bring to local areas.

In publishing this consultation document, I want to be clear about our intentions. This policy is consistent with our long-standing support for Wales’s tourism industry. Tourism-related expenditure in Wales was estimated to be over £5 billion in 2019 and we want to continue to see a thriving tourism industry in Wales as part of a strong recovery following the impact of COVID-19. It is well known that public services and infrastructure are integral to the visitor experience, and a levy will help encourage their continued investment.

I want to emphasise that the proposed levy would be fairly applied in a manner consistent with our core tax principles. Any visitor levy introduced would be clear, stable and simple, and it would strive to create a more equal Wales. Our intention is to bring about a sense of shared responsibility between residents and visitors, to protect and invest in our local areas. A levy would represent a small charge and would encourage a more sustainable approach to tourism. It's important to remember that our proposal considers discretionary powers for local authorities; we want local areas to decide if a levy is right for them. We are fortunate to live in a country that has such a diverse offering for visitors. We recognise that the scale and the impact of the visitor economy varies across Wales. Our goal for any levy proposal taken forward is for a consistent manner of application across those destinations that choose to implement it.

Over the past eight months, we have engaged with a wide range of partners to understand and consider differing perspectives. These views are reflected in the consultation document and the impact assessment, to support others when providing their responses. Discussions have been held with local authorities, businesses, third sector representatives, industry bodies and officials in overseas administrations that have well-developed visitor levies. I am grateful to all partners who have contributed to the process so far.

We will be issuing a partial regulatory impact assessment alongside the consultation that will outline the potential costs and benefits of the different options for introducing a visitor levy. We hope that this provides a solid foundation on which to elicit more evidence and feedback. This work will help inform a final impact assessment for any measures taken forward, alongside outputs from the independent research that we have commissioned.

A decision on how we proceed will be made following due consideration of the consultation responses and other evidence. Enabling a discretionary visitor levy across Wales would take several years following this consultation, and follow a careful process of design and implementation. This would provide ample time for businesses, local government and local communities to plan ahead.

Llywydd, there will always be a warm welcome for visitors in Wales. This progressive policy is about supporting local areas, ensuring that visitors, whether they have travelled from within Wales or from further afield, make a small contribution towards maintaining and enhancing the place they are visiting. Done properly and fairly, this can be of great benefit, and provide an opportunity to enhance our beautiful country. I encourage all of those with an interest to get involved in the consultation to ensure that their views help shape our plans as we take them forward.

The Llywydd took the Chair.

Can I thank the Minister for her statement? I must admit, I did have to check who the Minister was with responsibility for tourism today, because it's the finance Minister, yet again, who is making another announcement from the frontbench on the Welsh Government's approach to tourism, rather than the economy Minister who is responsible for it. Indeed, the economy Minister, responsible for the tourism industry here in Wales, has never made an oral statement in the Chamber on plans for the sector since taking the role. That's because the Welsh Government sees tourism in Wales not as something to nurture, protect and enhance, but something to tax instead. And the fact that we're pressing ahead with a consultation on a tourism tax only underpins that further.

I'm afraid that when it comes to the Welsh Government and consultation to do with the tourism industry, you'll forgive me, Minister, for not being overly enthusiastic about your track record. The recent consultation on the changes to holiday let properties had only 1 per cent of the total number of respondents backing the increase to 182 days, but you totally ignored their views and pressed ahead with the changes anyway. How on earth can the tourism sector in Wales have any faith that this will be a fair consultation undertaken by your Welsh Government when your track record is so poor?

This industry has felt so ignored and so taken for granted by this Welsh Government for so long that, over the summer, we saw a farcical situation where Welsh Government Ministers were banned from visiting one of Wales's premier tourism attractions, Dan-yr-Ogof caves, because of it. In a statement that they released on the announcement of this unprecedented move, they said, and I quote:

'Owing to the Welsh Government’s anti-tourism, and anti-English policies being imposed on the Welsh tourism industry, members of the Welsh Government are no longer welcome at this attraction. Their policies will lead to tourism businesses being forced to close, and thousands of tourism jobs lost.'

Your own evidence backs that up. The partial regulatory impact assessment that you mentioned states, and I quote:

'Reduced competitiveness is a possibility'.

They also cited a study that states clearly in the abstract that

'The study’s empirical evidence suggests a strong case for reduced taxes on tourists in order to improve the competitiveness of tourist destinations and support the local tourism sector.'

That's in your evidence. The real effect of this tax being introduced will put livelihoods at risk in Wales, as one in seven jobs—around 200,000—rely on the tourism industry. This is the wrong policy at the wrong time. People across the world are dealing with high levels of inflation and an increased cost of living. Adding another bill only increases the probability of potential visitors choosing to stay away.

We know that the hospitality sector in Wales specifically, which includes tourism, has been the worst hit from COVID-19 after being locked down longer than their counterparts in the rest of the UK. Not only that, but such a tax targets exactly the people that we want to encourage to come to Wales in the first place. If this tax, as seems likely, will take the form of a charge on overnight visitors, we're taxing exactly the people who spend the most money in our local economies. But the sector has been telling you this all along, Minister, and they'll tell you again in the consultation, but they'll need to feel like they've been listened to. You also say that tourism taxes are common across the world, but under 'tax purpose and scope' in the document, it says that some destinations use visitor levies as a mechanism to restrict or reduce visitor numbers—the key side effect of your policy explained in your own document in black and white. 

And finally, as I've asked time and time again during these statements, I'm still yet to hear any assurance from the Minister, or anyone in the Welsh Government for that matter, that introducing this tax will actually increase spending by councils on tourism. Buried in the small print of the consultation, actually, is the concession by the Welsh Government that whilst there will be an expectation that local authorities will use the revenue raised through a visitor levy to fund activity that is of benefit to the visitor experience and that local stakeholders are consulted in this process, there will be no formal requirements set out in a national framework. So, there we have it: we're launching a consultation on a tax where the Welsh Government has a track record of ignoring the results. It will damage businesses across the country, reduce competitiveness and won't even see any financial benefit to the communities affected. Surely now, Minister, isn't this the time to ditch this scheme for good?

He finally got to a question in the very last sentence. No, this isn't the time to ditch this idea. This is the time to launch a consultation to engage widely and to take as many views as we possibly can on the idea that has come forward.

This goes back, of course, to the Holtham work, which suggested that this might be a particular tax area that would be a good fit for Wales. It came forward again in 2017 when the now First Minister asked people in Wales for their ideas of taxes that could be introduced in Wales, and a tourism levy or an overnight levy came forward as one of those ideas. People came up with that idea because they'd experienced it for themselves and they'd seen the benefits for themselves when they had gone abroad to a whole range of countries across the globe that have introduced a tourism levy, and done so with success and done so in a way in which they're able to reinvest in their local tourism infrastructure to make those conditions for successful, sustainable tourism. 

I think that there are very clearly, as set out in the documentation that you see before you today, a whole range of benefits that can be brought forward as a result. We've seen investment in public spaces, for example, in countries that have a tourism levy, we have seen investment in sustainable local transport. There will be lots of options, I think, for local authorities to consider in terms of where the pressures are because of tourism in their areas and how those can be alleviated, but also the ways in which the investment in the infrastructure can enhance the local area and invest in those conditions that make tourism a success. 

We have consulted widely over the course of the development of this policy. We've had a whole range of engagement with the sector, with local government, with the third sector, with all sorts of parties who have an interest in this, and we'll be doing more of that work in the period ahead. Myself and the designated Member, Cefin Campbell, will be up in north Wales on Friday, in Portmeirion, holding a round-table event for the sector so that they can get into some of the proposals and give their particular responses to those. I know the First Minister and the leader of Plaid Cymru are planning on holding similar events to listen directly to the views of those who will be interested in these proposals. 

It is true that any tax can be introduced for one of two reasons. You have behavioural taxes, which seek to change people's behaviour. We have some examples of those that we're considering in Wales and that we already see being implemented across the UK. For example, in Wales, we've got the landfill disposals tax. That's about changing behaviours and reducing the amount of waste that goes to landfill. But then at the same time, we have those taxes that aim to raise revenues. In Venice, for example, they want to reduce the number of tourists who are visiting Venice because of the extreme pressure that they are under. However, in a whole range and almost the vast majority of other areas, they introduce these taxes to raise revenues to reinvest in those communities and the services that make tourism a success. And that's the space that we're in; we're not seeking to reduce the number of people who come to Wales, we're seeking to support sustainable tourism where people who visit Wales can make a fair and small contribution to the upkeep of local areas.

So, as I say, we are only launching the consultation today. I think it's important that we all recognise that. I know that colleagues on the Conservative benches, as on other benches, will all take their opportunity to be part of that consultation, and we look forward to hearing more views as we move forward.

Thank you to the Minister for her statement. The first thing to say, of course, is that the importance of the tourism sector is undoubted; myself and my party and everyone else here would recognise the important contribution made by the sector. What we must guard against is finding ourselves in a position where there is too much extractive tourism. We have found examples over recent years where that has been a problem in communities across Wales, so we need to move to a more sustainable position—that’s what we need to do.

We've seen the pressure on local infrastructure, local services, natural resources. Last year, there was an increase, and there are statistics to show an increase in littering, human waste being left on pathways, wild camping and the erosion of pathways. So, in order to create a more sustainable future for the sector, we need to move towards a more sustainable model, and a levy like this—for me, at least—isn't a punishment for the sector or a punishment for anyone else. I see it as a source of revenue that can be invested in infrastructure, not only to improve the experiences of communities welcoming people, but also the experiences of the visitors themselves, who will ultimately attract more visitors—that's a virtuous circle, that is, that we have a more sustainable situation than we currently have.

This, of course, is a consultation; the beginning of a consultation, a discussion and a conversation. Hopefully, the comments we hear from the Conservatives won't mean that the sector won't come to the table, and that they don't share the cynicism that we heard in the previous contribution. It is an opportunity for everyone—the sector, the communities and everyone else—to share their views, and if it's done properly and if it is something that is co-produced, then I do think that something like this has the potential to bring real benefit to the sector. And we're talking about a discretionary power here for local authorities. They won't be required to implement this.

The Conservatives often remind us that devolution doesn't stop in Cardiff Bay—well, fair enough, but here's a practical example of empowering local authorities to tackle an issue—and you're opposing it. If you're serious about helping the sector in Wales, then speak to your own Chancellor about value added tax. There are plenty of other opportunities whereby you could be supporting the sector. The Conservatives in other parts of the UK support this step. Conservatives leading on the Isle of Wight and Bath and North East Somerset Council have been calling for this. The Conservative leader in the Cotswolds is also saying they support this. We've heard about the many tens of other countries that have such levies, so we sometimes have to identify the opportunity and not just identify the problem.

So, just a few questions from me, Minister. There are different ways, of course, of introducing a levy—the overnight levy is the most prominent—but I wanted some clarity as to whether the Government thinks that is the way forward, or are you open-minded in terms of other approaches in terms of such a levy?

We've heard quite rightly that there is a cost-of-living crisis; how will you ensure, therefore, that any levy would be proportionate and fair for those people who will be paying such a levy? Can you also confirm that it is your intention—it's implicit; I'm not sure if it's sufficiently explicit—that the intention is that any funding raised locally will be spent locally? I think there's an important question that needs to be answered there.

And we hear people saying that it'll take a few years for this to become a reality, if it does happen. Is it the intention that that would happen within this Senedd term, or do you anticipate that it could be a longer timeline than that? Thank you.

I'm very grateful for that series of questions, and for the contribution that started off, really, about talking about how this does not have to be something that causes antagonism between Government and the tourism sector. Quite the contrary, it can be something that can be co-produced effectively with the sector, understanding the benefits that could be brought to the local offering for tourism through a levy. We see it across the globe, really, in terms of the benefits that are being brought forward.

In New Zealand, for example, they funded 10 projects in their 2019-20 scheme through their international visitor conservation and tourism levy. They aim to protect sensitive and ecologically valuable landscapes; to upgrade visitor amenities, footpaths and signs; protect endangered species; enhance visitor access through opening new car parks and walking and cycling trails; and promote tourism careers. I think all of those things are things that we would like to be seeing more of happening here in Wales. A tourism levy would allow local authorities to be able to take initiative and to do that as well. So, I think that there are great examples that we can look to in those places that have introduced them.

Llyr Gruffydd also referred to some of the other parts of the UK that have also called for a tourism levy. Of course, we see the work being taken forward now very seriously by Scotland, but also those Conservative councils and former Conservative councils that have called for the power to be given to them to introduce a tourism levy. And Llyr Gruffydd gave a whole list of them, including the Isle of Wight and the formerly Conservative Bath, and I'd add Cornwall to that list as well. So, I think that there is a growing interest across the UK in introducing a levy.

In terms of what kind of levy, I think that our consultation is clear that the development of the thinking thus far has been around an overnight levy, given that that is the most popular kind of levy globally and it's where we've been drawing our inspiration from. But it is important to recognise that the consultation document does have that open question to people: are we focusing our efforts in the right place or do they have ideas for a day-visitor levy, for example? You see it working quite effectively for cruise ship or ferry passengers; you see that happening in places like Amsterdam, Rotterdam and Catalonia, where they have that day-visitor levy for cruise ship and ferry passengers. That, I think, reflects the high number of those visitors that they have very frequently.

Elsewhere, you have entertainment taxes, for example, in Amsterdam, and that's for operators of boat tours, renters of canoes and peddle boats, tour operators and city tours. That's not the area where we've been putting our effort into in terms of developing policy, but we are aware that there are different models elsewhere, and we very openly welcome any contributions, through the consultation document, to that.

'Proportionate' and 'fair' are two of the things that are very much our core principles that guide, really, our thinking in terms of tax, which is why we're really keen to explore some of the questions as to at what point we pitch the rate. So, we've done some work around price elasticity, which we're publishing alongside our document today, which will help us with some of the thinking around that. Also, the consultation document asks people for their views in terms of do we charge the room per night, do we charge per person per night, or do we do something that would be about a percentage of the cost of the room per night or a combination of those things. So, again, this is very early in terms of our consultation and we're keen to hear the views of people and their ideas as to what they think would work best.

In terms of whether the funding would be spent locally, it's very much the case that, in giving local authorities the power to raise funds locally, we would expect them to be used for the enhancement and the protection of the services that tourists come to Wales for because they know we have them and they love them. We have an idea in our consultation document, again, about how we can add some transparency around that, so perhaps an annual report from local government. We do have to be proportionate in terms of the level of reporting that we require on this, bearing in mind that we are going to be talking about relatively small but important sums of money but, again, that's something in the consultation document in terms of the level of transparency that we're able to produce for people who'll be rightly interested, both visitors and, of course, the tourism industry.

I'm grateful to you, Minister. Members will be pleased to hear that I'll just make a short intervention this afternoon. I'm fully in support of a consultation, and fully in support of the levy that you are proposing. I believe that we do need to have a real debate about the nature of tourism and the impact of tourism on our communities. All too often in this Chamber, we make assumptions and we work on the basis of assumptions, and one of those assumptions is that mass tourism is only for the good. But we know that there are very negative impacts from mass tourism on many communities, and we've had that debate about the place of housing, homelessness and the ability of people to live in their own communities. So, I think we do need a real debate about how tourism impacts Wales in a positive way, as well as some of the more negative issues. 

I pay a visitor levy, or a tourism tax—whatever you want to call it—when I travel, in many places, and it doesn't affect me at all. In fact, I think I have a very real duty to pay for the services that I use when I'm visiting another place, and I think I have a responsibility to do that as well. I want the tourism that I embark upon as an individual or as a family, whatever, to benefit other places, and if that means contributing towards infrastructure, I'm very pleased to be able to do that, and I think we should argue for that. 

I would say to you, Minister: I hope that you will explore the options that will be available to local government in terms of delivering this tourism levy. I hope also that you will look at examples elsewhere in the world. I have, for example, paid a toll, if you like, to drive into a national park in the United States, as well as paying a room tax, or a city tax, in places across Europe. I think there's a whole range of different options available to us. And I hope, Minister, you will not listen to the siren voices behind you, but you will look at the hard facts from different parts of the world, where a tourism levy helps contribute to the integrity of the community that is being served, and we should ensure that the community, that people, come first. I know that the Tories always prioritise profit—they'll be doing it on Friday again in London, they're doing it today. But I want this Government to prioritise communities, people and people's livelihoods, because I think that's what the people of Wales expect us to do.

I'm very grateful to Alun Davies for his comments and his support for the consultation that is launched today. He's absolutely right that whilst we of course want to share what we have here in Wales with people from across the globe, we also need to ensure that tourism is done in a way that is sustainable and that doesn't harm communities. And it is important to get that balance right. Also, I think this really ties into some of the work that my colleague Vaughan Gething is doing in terms of ensuring that kind of year-round tourism can grow in Wales, so that we have a better balance throughout the seasons, and we're better able to meet the expectations of people when they come to visit us here in Wales. And they will absolutely always be assured of a really warm Welsh welcome when they come to us here in Wales.

I think that the point about feeling that shared responsibility is a really important one, because when you do feel that responsibility to the community that you visit, it does give you a different emotional tie, I think, to the place in which you're taking your holiday or visiting. And I think that, for people to have an emotional tie with Wales and then leave, is a lovely thing, and they'd probably be very keen to come back to see us again. 

The voices behind me are many things; siren voices I wouldn't describe them as. But, absolutely, we'll be looking at what the evidence tells us in terms of developing the proposals for the tourism levy. We'll look really hard at what's happening in other countries. We've engaged with places such as Philadelphia in the US, for example, to get a sense of their experience. We had representatives from Amsterdam speaking at our tax conference last year. And we're learning many things from them, not only about how the taxes are developed locally, but the implementation of those taxes. We don't have to be the same as another part of the globe to learn from them in terms of implementation of taxes and delivery of taxes and so on. So, I think that the more that we can learn from other countries, the better. We have world-class tourism destinations putting in place tourism levies and it doesn't turn people off. Why don't the Conservatives have the same level of ambition for Wales to be that world-class tourism destination where people will come back to year after year?

Thank you for your statement, Minister. Minister, you are here today putting the idea of a visitor levy, also known as a tourism tax, to the people and businesses of Wales in the form of a consultation, although it's quite frankly staggering that it has got this far. It will punish the tourism sector, and as, Llyr, your own party leader, Adam Price, admitted, the money raised this Government doesn't even intend to go back into the tourism sector. This is a tax that industry experts such as Jim Jones, the north Wales tourism chief, deride, in saying, and I quote:

'A tax on tourism would be a hugely regressive step that would damage an industry that is already reeling after being battered by the pandemic'.

We want and need to be encouraging people to stay in Wales and to take staycations, not only for environmental reasons, but to stimulate our economy and to protect our local businesses. So, at a time of economic crisis, when many in our tourism sector have been battered by the pandemic and the economic crisis and need our support and help the most, what you do, Minister, is present to the people of Wales something that has been proven to have a detrimental effect in many countries as well across the world: a tourism tax, a tax that will put off people coming into Wales and staying in Wales.

Minister, you have talked about exemptions. You have said that you'd make some exemptions, but you've not said what those exemptions may be. Could we have some clarity on, in fact, who would be exempt from the tourism tax, and transparency around where the money goes, if this goes ahead, this ludicrous idea? If it goes ahead, we need to follow that money to see if it is, in fact, going back into the tourism industry, as it's not something that you can stand here and guarantee that it will, especially if it's up to local government. So, it's not something, surely, Minister, that you can sell it to do that. 

So, I'll just begin with this point about it being a time of economic crisis, which it absolutely is. We're facing a cost-of-living crisis, and let's hope that the Chancellor comes forward with a seriously strong package of support for business when he makes his announcement later this week. We are talking about an overnight levy, but we're not talking about it being introduced overnight. The point here is that what we're launching today is a consultation on the idea, so that people can engage with us and help us shape this proposal.

Colleagues will know very well that this will require legislation to be moved through this Assembly—sorry, through this Senedd—and that will require a serious amount of work. It's a four-stage process, so there is lots and lots of time for colleagues to look to scrutinise and to develop the idea with us. So, it absolutely isn't going to be introduced overnight. It takes a number of years in order to bring forward the legislation, to fully develop the ideas and then to move to the implementation phase, which in itself is a significant undertaking.

I think that the question about exemptions was an important one. I'm happy to share with colleagues the kinds of areas that we are looking towards in terms of exemptions. One would be Gypsy and Traveller sites. We'd look to exempt Roma and Gypsy primary residence sites from the levy because their lifestyle is inherently transient for cultural reasons. We would also look perhaps—and this is all part of our consultation, so views would be gratefully received—to exempt local authority-arranged emergency stays; for example, people who are experiencing homelessness or who are fleeing domestic violence.

Also, exemptions could include Home Office-arranged stays for asylum seekers and refugees and also others who are fleeing domestic abuse, perhaps staying in specialist accommodation for that purpose, and then emergency stays within premises operated by charitable or non-profit organisations—again, stays for respite or refuge purposes. It's our preferred position that visitor accommodation provided by a charity or non-profit organisation for the purposes of respite, refuge or shelter is not included in the scope of the levy.

So, the consultation document sets out a range of circumstances where we think that it might be inappropriate to introduce a levy, but of course we're asking for people to share their comments and their conclusions on that to help us, again, shape the levy. And I think I've already spoken to the point about transparency and the importance of the question in the consultation document that refers to annual reporting and other mechanisms. The document also talks about soft hypothecation and looks at different models that have been used in various different places, in order to help us further our ideas as we move forward.

The Member talks about places that have been destroyed by tourism levies across the globe, but we don’t see that. We have looked at examples of where tourism levies have not been successful—one would be the Balearic islands, which introduced an eco tax in 2001, perhaps before its time, and it did repeal the tax shortly after, because visitor numbers declined, but that was against a backdrop of globally declining visitor numbers anyway across a number of destinations at that time. But they have subsequently reintroduced the tax, many years later. They did it in 2015, and they saw an 11.2 per cent rise in international arrivals the following year. So, I think that, when you do look closely at the examples where this has been introduced elsewhere, you do see positive work that has been able to be undertaken because of the tourism levy, and it’s not viewed, in those countries that do operate one, as being one that stifles business; it’s viewed as something that creates investment to support those businesses.

I met with Brecon Beacons Tourism recently, Minister, and they have many concerns, but one of their biggest concerns was the lack of clarity from the Government over this. The change in language used from a focus on tourism to a visitor levy has contributed to uncertainty. The First Minister himself said it isn’t just for people coming to Wales for tourism purposes—the levy will apply to visitors for other reasons as well. This is a big shift and will have massive consequences, but there has been no detail behind that, so I just wonder if you can expand on what the First Minister was talking about. Is this going to go further than overnight stays? Because there is no detail around that.

We’ve also heard the leader of Plaid Cymru saying that funds will be going towards paying for free school meals, and you've said yourself today, and in written statements, that this money will be invested back into local services. So, which is it here? Because the coalition between yourselves and Plaid Cymru doesn’t seem to know where it’s going. The left hand doesn’t know how further left the other hand is going. And I'd also like to know: can the Minister give proper assurances to those genuine businesses out there that this will affect—their livelihoods are affected, their families are affected—that you will listen to the consultation and, if the tourism industry does not want this, that you will respect their views and opinions? Because that’s what democratically elected Governments do—they listen to their people; they don’t dictate to them from the top. 

So—[Interruption.]

Allow the Minister to respond, please.

So, I will address that point where the Member asked about the difference between a tourism tax and a visitor levy and why the language around that changed, because I do think that’s an important question. The reason that we moved away from the word 'tourism' to 'visitor' was because a tourism levy or a tourism tax didn’t fully capture everybody who would be undertaking an overnight stay in Wales. It would be our intention for business travellers, for example, to also pay the overnight levy, because they have a similar impact on the local environment, but also because you can’t always distinguish exactly between somebody’s business and a tourism visit, because often, of course, people on business trips undertake some leisure and tourism while they’re here and we want to continue to encourage that. So, that’s the reason why—because we wanted the visitor levy to encapsulate all of those who would be undertaking overnight stays apart from those exemptions that I've just given some examples of, of course. So, I hope that clarifies why we moved away from the wording 'tourism tax' to a 'visitor levy'.

In terms of the funds going back into local services and to being reinvested in those things that make tourism a success, I think that we’ve been amply clear, working with Plaid Cymru on this, to demonstrate, through the consultation document, which has been launched today, and through everything that we’ve been saying about the levy, that this is very much about investing in the things that make tourism successful—investing in local infrastructure, protecting local amenities and so on. We’re very clear on that. We’ve done lots and lots of good work with Plaid Cymru. You’ll be hearing a statement later on today on free school meals, in terms of our support for that. So, I think that these are two really clear examples of where the co-operation agreement is absolutely working very well. It’s working really collaboratively, and it’s absolutely going to be delivering for people in Wales.

I do want to say that of course the consultation is a genuine consultation and we want to hear all of the views. What we want are practical responses to the practical suggestions that we’ve made within the consultation document. I look forward to hearing as many views as possible and look forward to considering all of them. Similarly, I look forward to having the round-table discussions that we'll be having—the first one, as I mentioned earlier, with Cefin Campbell up in Portmeirion on Friday. 

Thank you, Minister, for the statement. Just a couple of things. This is a tax—it's not a levy—and it's Labour's prerogative to put taxes in, and they do that generally. That's why we're so different on this platform, certainly here in Wales. I would ask what evaluation have you already made of local authority spending plans and budgets around economic development and tourism, so they can achieve the goals you're trying to achieve with this levy. Because don't be naive in thinking that this levy will suddenly flow out to extra pavements and extra beach whatevers, or any attractions—this will go to fill gaps in hard-pressed budgets, and you won't see any additionality; you'll see an expectation of just clawing in an additional tax within that authority. I would like to know what reassurances you could give that those local authorities that decide not to do this aren't penalised through their future settlements as a result of not taking this up.

And again, a point that has been raised a couple of times—how will you ensure that that tourism tax goes to do what you want it to do and it doesn't just backfill or substitute already economic budgets that are then diverted to social services, education or whatever? I'm absolutely one for unhypothecated moneys running through to local authorities, but I'm fearful that in this time of great need in local authorities that additional taxes like this will just go to fill in some of the pressures that authorities are facing.

So, I would have said there's a far better way to have looked at some of the needs of our tourism communities, by working with local authorities and their current economic development strategies to enhance the offer we have in Wales. Many people in Wales—. What if you live in Wales and holiday in Wales? You're paying tax twice. You're paying tax into your local council tax to enhance the local economy and tourism, then you're asking them to pay again in Wales to stay and enjoy their holiday in Wales. So, there are so many things within this consultation that beg a lot of questions, and I think it's just an easy way out—just tax, tax, tax. 

So, I'll begin by just responding to that very specific question in terms of local authorities being penalised through the RSG. I just want to be really clear that there is no link whatsoever to the revenue support grant from this work at all. This is about giving local authorities the power to choose to raise additional funding within their areas; it has no knock-on impact whatsoever on the revenue support grant. I think that's important for us to recognise. It will be a legal requirement that any funds raised from the levy must be used to fund local authority expenditure. 

I think that you'll find within the consultation document some questions that we're keen to hear people's responses on in terms of how that should be reported, whether or not—you know, what level of hypothecation people believe would be appropriate. I think we have to strike a balance, really, between being pragmatic and practical in terms of the amount of information that we ask local authorities to gather and to share. And I think that perhaps that annual report that is suggested in the consultation document might be a good way to have that level of transparency and for people to hold their local authorities to account and for visitors to understand where their contribution has gone. 

So, that's a suggestion in the consultation document. We're open to all ideas, because this is genuinely a consultation where we're seeking to hear as many views as we possibly can on the proposals, and, of course, I'd encourage all colleagues with an interest to have their say. 

And finally, Sam Rowlands. 

Diolch, Llywydd, and thank you, Minister, for bringing forward today's statement. Minister, you'll be aware, of course, that this summer's report by the Federation of Small Businesses on tourism showed that tourism accounts for over 17 per cent of Wales's gross domestic product, and accounted for over 12 per cent of employment here in Wales, showing how crucial that sector is to us as a country and to many of our communities across Wales. Within that report, Minister, you'll also be aware that they've stated—the FSB—that

'discussions on more tax are unhelpful, so tourism tax should be kept off the table'.

In addition to this, Minister, across the summer recess in my capacity as chair of the cross-party group on tourism, I had the delight of meeting a number of businesses within the tourism sector, listening to their concerns and the challenges that they are facing at the moment. And it's clear to me, from those in the sector, that this is the wrong time to introduce a tourism tax, and, in their words, it could be detrimental to their businesses. So, Minister, we have your side of the story, which seems to say that a tourism tax is a wonderful idea, and we've got hard-working businesses and the Federation of Small Businesses saying that this is not a good idea. So, who's wrong here, Minister? Is it them or is it you?

Well, I think you're wrong in the sense that we're not introducing a tourism levy imminently. I think this is something that I do regret that the Conservatives have been portraying to people in the tourism industry as if this is something that the Welsh Government is going to be introducing overnight and imminently. It's absolutely not. We're introducing a consultation today to hear people's views on the proposals. And as colleagues will know, this will take a number of years to come to fruition. So, it's certainly not something that will be introduced imminently and that's because we have to consult, we have to consider all of those responses to the consultation—and I'm expecting a really strong response to the consultation—and then, of course, we have to formalise our legislative proposals, bring them to the Senedd, go through all of those stages in committees, through scrutiny, through amendments and so on, and then obviously move on to the implementation phase; all of that time looking at the kind of infrastructure that would be needed to support the implementation of a levy. So, for example, the registration scheme for businesses in the accommodation sector. That might help as part of the model for delivering on the levy and allowing us to implement it. The consultation document looks at a number of ways in which it could be implemented, and I'd encourage colleagues to express their views on which of those would be the most appropriate way forward. So, all of this will take a number of years. There won't be any tourism levy introduced imminently, but you'd never guess that when you look at the contributions from the Conservatives on social media. So, I do think that it does no justice to the tourism sector to be making them worried about something that isn't going to happen for some time and which they will have the opportunity to help us shape, in partnership, as we move forward.

I thank the Minister.