5. Statement by the Minister for Finance and Local Government: Visitor Levy Consultation

Part of the debate – in the Senedd at 4:26 pm on 20 September 2022.

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Photo of Rebecca Evans Rebecca Evans Labour 4:26, 20 September 2022

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.