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Businesses and tourism providers should have a say in where tourism tax earnings are spent, a Senedd committee has argued.
The Welsh Government is set to introduce a visitor levy, or tourism tax, from 2027. The aim is to generate money that can be reinvested into Wales’ tourism sector.
The money would be collected by local authorities. However, the Senedd’s finance committee is calling for the creation of ‘visitor levy forums’ to ensure councils listen to the views of businesses and local bodies when deciding how to spend that money.
The committee, chaired by Plaid Cymru MS Peredur Owen Griffiths, has called on the Welsh Government to follow Scotland, which has implemented a similar law to give stakeholders a say.
What is the tourism tax?
The planned ‘visitor levy’ or ‘tourist tax’ will give local authorities the power to impose a charge on visitors staying overnight.
Under the current proposals, the amount charged to tourists would vary, ranging from those staying in hostels or camping areas paying 75p per person per night, with people in other holiday accommodation like hotels or house rentals, paying £1.25 per person per night.
The Welsh Government told the Senedd’s finance committee that it predicts it could bring in up to £33m per year. However, some hotels and tourism organisations are worried the tax could put visitors off coming to Wales.
The Senedd is due to debate and vote on the first stage of the proposed law on Tuesday April 1.
Mr Owen Griffiths, who represents South Wales East, said: “The visitor levy has the potential to generate tens of millions of pounds every year which can be reinvested into maintaining and improving local facilities such as pathways and public toilets, supporting both residents and visitors alike.
“Using these funds to improve local infrastructure will benefit our communities and foster sustainable tourism.”
He continued: “One of our key recommendations is that this law should be amended to set out that businesses and tourism bodies should sit with local authorities to work together on where the money should be spent.”
Mr Owen Griffiths said that while concerns had been raised from within the tourism industry over the prospect of the tax, he was “confident that a sensible and collaborative approach can benefit our economy whilst preserving the appeal of Wales as a premier destination”
He added: “This legislation has the potential to make tourism work better for Wales.”
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