Senedd set to vote on crucial stage of tourism tax legislation

Emily Price

The Senedd is set to vote on a crucial stage of legislation to introduce a tourism tax to Wales.

The Visitor Levy Bill will see councils given the choice to introduce an additional charge on overnight stays in their area. 

Local authorities would then be free to decide how they spend the proceeds.

The Bill is currently at its third stage and if passed will likely get a final sign off later this month before being sent to the King for Royal Assent.

Today's amendment stage is the final chance for Senedd Members to make changes to the Bill.

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'Common'

The Welsh Government hopes the tax will foster a sense of shared responsibility between residents and visitors.

Speaking ahead of the debate, Finance Secretary Mark Drakeford said: "The visitor levy is a small contribution that could make a big difference if councils choose to introduce it in their local areas.

"We think it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience.

"Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales."

If introduced, the proposed levy for overnight stays in hotels, B&Bs and self-catering accommodation would be £1.30 per person before VAT.

A lower rate of 75p would apply to hostels and campsites.

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Amendment

The Bill has already been amended so under-18s will no longer have to pay the levy when staying in hostels or campsites.

The Welsh Government says the policy could raise around £33 million a year if all of Wales' 22 local authorities chose to implement it.

But tourism chiefs argue they have been faced with a flood of policy changes over the last two years and small businesses have become overwhelmed by the number of new regulations and costs.

Opposition 

The Welsh Conservatives oppose the concept of a tourism tax and will vote against, but have also put forward a series of amendments to the Bill to reduce its scope and impact, including exemptions and levy reductions.

Shadow Cabinet Secretary for Finance, Sam Rowlands said: "Labour and Plaid’s toxic Tourism Tax will devastate the sector; it must be axed.

"The Welsh Labour Government’s own figures project up to £576 million in economic damage over the next decade and hundreds of potential job losses annually as a result of their so-called ‘visitor levy’, which enjoys full support from Plaid Cymru and the Lib Dems.

"Welsh Conservatives are clear: we will be voting against this act of economic self-harm today, because the sector deserves to be supported not hit with a new tax."