Part of the debate – in the Senedd at 4:26 pm on 9 November 2022.
Could I also thank the Economy, Trade and Rural Affairs Committee, under, of course, the fantastic chairmanship of Paul Davies, for bringing forward today's important committee report, 'Raising the Bar: Securing the future of Hospitality, Tourism and Retail'. I quite like that title, actually—'Raising the Bar'. As I'm sure that Members from across the Chamber will know, and from contributions from myself in the Senedd over the last 18 months, and especially as the chairman of the Senedd's cross-party-group on tourism, I'm a huge advocate of the hospitality and tourism sector in Wales, and that's why I want to contribute to today's committee report debate—something which Alun Davies often comments to me on, about my advocacy of the sector, and I'm pleased that he's mentioning it again over there—because this report clearly highlights the sheer importance of the sector, but it also outlines many of the challenges it faces as well.
I'd like to just focus my contribution on just a couple of important areas from the report, and firstly, just to again highlight the importance of the sector in our economy in Wales. As always, one to take note of output from the Federation of Small Businesses, I took a keen interest in their report over the summer on tourism that, again, showed that tourism accounts for over 17 per cent of Wales's gross domestic product, but it also accounts for over 12 per cent of employment here in Wales. As others have mentioned, if you include hospitality and retail within that, we're talking about a third of the economy here in Wales, clearly showing how important it is to our communities and to the residents we represent up and down Wales. This was also outlined in the Chair's foreword to the committee report, which I'll directly quote, saying that,
'The hospitality, tourism and retail sectors are absolutely vital to our nation’s success. Alongside the large numbers of jobs they create they also provide the backbone of the entertainment and social life people in Wales, and our visitors, enjoy, and that make Wales an outstanding place to live or visit.'
But there are, of course, challenges facing the sector, and others have already highlighted some of those here this afternoon. As we know, the Welsh Government's proposed tourism tax is of huge concern to the tourism sector, and that's why I, like others, was glad to see the consideration of this as a part of a number of the committee's recommendations to the Welsh Government and, indeed, to the Minister. As outlined in recommendations 9, 10 and 11, it's crucial that Welsh Government sets out its evidence behind a tourism tax, but also shares their research projects behind this, and sets out their intended approach when it comes to this draft legislation.
If a tourism tax is to be introduced, it's vital that councils are able to spend this not only sustaining tourism in their local area, but also to see it being boosted. And I believe that it's also very important, in terms of making this as effective as possible, that there are mechanisms in place to include businesses and their voice in the decision-making process of how this new revenue spend will take place in their areas.
Another concern that's been passed through to me as the chair of the tourism cross-party group is the ongoing worries that the tourism sector, and in particular, the self-catering sector, regarding the 182-day rule, which has already been referenced here today, and referenced in recommendation 8 of the report. And as has been mentioned by others, this is part of a long list of Government-enforced changes to the sector, which is causing a significant amount of anxiety for many business owners and tourism attractions across Wales. And this is why it's so important that if, on the one hand, more is expected of the sector in terms of legislation and compliance, then, on the other hand, more should be offered to the sector in terms of support and advocacy. And that is why I welcome recommendation 7 in the report, which is seeking to clearly show where this support is provided and focused so that the sector can have the assurance that it's treated with the level of respect and importance that it deserves.
And this leads into my final comments relating to the need for support for the sector and clarity as to what the future may hold, which is extremely important, following difficulties faced during the COVID-19 pandemic and now with the pressures that global inflation is providing as well. And indeed, this support needs to be there in terms of the financial, but, in softer support, in terms of advocacy and highlighting the opportunities the sector holds for Wales and for our communities, I know the Minister will want to make sure that those opportunities are highlighted and will always want to speak well of the sector as well.
Because, indeed, as outlined by UKHospitality Cymru, before COVID-19, the hospitality and tourism sector was growing around 10 per cent a year, creating hundreds of new jobs for local people up and down Wales. And it's clear from the committee's evidence from UKHospitality Cymru that both Welsh and UK Governments have provided some good support to the sector over the COVID-19 pandemic. So, the Minister's announcement of reassessment of the principles behind business rates is also welcomed in this continued spirit of support.
I'm conscious of time, Deputy Presiding Officer, so I just want to thank, again, the committee for bringing forward the report and the recommendations in it, and the Minister for listening to the committee and I'm looking forward to seeing how those pan out over the coming months.