Wales Tourism Tax Faces Calls for Flexibility Amid Council Postponements
An expert suggests the proposed visitor levy needs a more localized approach, as several Welsh councils delay implementation due to industry concerns.
A tourism tax proposed for Wales needs greater flexibility, according to an expert, as several local authorities have recently postponed decisions on implementing the levy. Anglesey council rejected the proposal, citing concerns for its tourism industry, while Gwynedd and Conwy councils have deferred their decisions.
The Welsh government's legislation allows local authorities to introduce a nightly charge for overnight stays, with the aim of supporting investment in tourism services and facilities. The levy, which is set to apply to both adults and children, could see fees of £0.75 plus VAT per person per night for stays in hostels, shared rooms, and tent pitches, and £1.30 plus VAT for most other accommodations. However, stays longer than 31 nights are exempt, as is temporary accommodation for those facing homelessness.
Dr. Linda Osti, a senior tourism lecturer at Bangor University, argues that the current legislation, applied at a county level, does not account for the diverse conditions and visitor types within different regions. "Geographically, if we think about Gwynedd....we cannot have the same levy on Eryri or Porthmadog. The same legislation cannot work for Cardiff, or in Anglesey, on the coast," Osti stated, advocating for a more localized approach to decision-making.
She also noted a perceived mistrust from tourism businesses regarding how local authorities would allocate funds generated by the tax, contrasting this with models in places like the Italian Alps where decisions are made through smaller co-operatives. Osti pointed to new powers for regional mayors in England to charge an uncapped levy on overnight stays as potentially more flexible.
Recent consultations in Wales have highlighted significant concerns from businesses and visitors. Anglesey council reported over 2,000 responses, with worries about increased costs for visitors and the island's competitiveness as a destination. In Gwynedd, nearly 7,000 responses indicated a mixed reaction, with more support from residents but opposition from visitors and businesses. Conwy council also cited fears of reduced bookings, shorter stays, and decreased visitor spending amid current economic pressures on local businesses.
Bethan Evans, who runs a caravan park in Gwynedd, expressed support for the tax, believing it would help manage issues like crowded roads and car parks during peak season. She felt that some opposition came from a "noisy, selfish minority" and that many visitors would be willing to pay a modest fee to help maintain the areas they visit.
Conversely, Nicky Williamson of the Professional Association of Self-Caterers (PASC) UK Cymru welcomed the postponements, calling it a "welcome victory for common sense and for listening to the evidence." She emphasized the existing pressures on tourism businesses and argued that the current time is inappropriate for introducing additional costs.
As it stands, Cardiff council appears to be the only authority in Wales set to implement the visitor levy, with the charge to apply to bookings made from April 2027 onwards. Osti suggested that Cardiff, as a city destination, is a suitable location for such a levy, particularly for business tourists who are less price-sensitive and often stay for shorter durations. The Welsh government stated that revenue generated in Cardiff would be reinvested in the city and its surroundings to enhance the visitor experience.