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.