City council sets out firm stance on tourist tax policy

Senior councillors in Newport have distanced themselves from the prospect of introducing a tourist tax.

The Welsh Government has proposed giving councils powers to charge overnight visitors and then use that money to help fund tourism services.

It has set out proposals for a £1.25 nightly levy for each person staying in Wales – and for guests of hostels and campsites, the rate would be halved.

Wales’ finance secretary Mark Drakeford has talked up the plan, saying it is “rooted in the principle of fairness”.

Each local authority can decide whether to implement the policy, if it comes into effect, but it already appears that Newport City Council will not be taking it up.

Responding to a Conservative ward member, council leader Dimitri Batrouni and the cabinet member for culture – Cllr Emma Stowell-Corten – said “there are no plans” to introduce the visitor levy in Newport.

In further comments to the Local Democracy Reporting Service, Cllr Batrouni said his local authority was focusing on increasing visitor numbers to the city.

“We want to encourage people to stay in Newport and discover what the city has to offer, as well as support our local attractions, hotels and other accommodation providers,” he said.

“Currently, we are working hard to build and develop Newport’s tourism offer, by working with partners and by developing the placemaking plan, the destination marketing plan and the cultural strategy. The levy does not form part of these plans.”

He added: “Newport is very much open for business.”

Cllr David Fouweather, a Conservative who tabled the initial question to the local authority, welcomed the cabinet members’ initial response.

“I am pleased the leader of the council has decided to go against his own party and government in Wales by rejecting this tax on Newport’s businesses,” he said.

“Cllr Batrouni seems to understand that taxing business and people even more does nothing to improve the economy of Newport. Perhaps he should offer that advice to ‘Comrade Drakeford.’”

The Welsh Government did not respond to Cllr Fouweather’s claims, but speaking in November, Mr Drakeford said tourism “makes an important contribution to the Welsh economy and to Welsh life”, adding the government wanted to ensure the “long-term sustainability” of the sector.

“That’s why we believe it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience,” he added at the time. “Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.”

Mr Drakeford also explained that councils would retain the money they raised through a levy, for reinvestment “back into their local areas to support local, sustainable tourism”. 

“It’s a small contribution that could make a big difference,” he added.

The government has said its visitor levy proposals would not be expected to come into effect until at least 2027, and could generate up to £33 million annually.