The Welsh government has announced that legislation to allow local authorities to introduce a tourism tax on holidaymakers will be put to the Senedd within the next two years. The move
comes after the government published the findings of a public consultation on the topic. Supporters of the tax argue that it would contribute towards maintaining and investing in holiday destinations, while opponents fear it would discourage people from visiting Wales.
Similar charges are already in place in over 40 destinations around the world, including Greece, Frankfurt, Amsterdam and Catalonia. Last year, Manchester introduced a tourist tax for people making overnight stays in the city, with 74 hotels and guesthouses signing up to the scheme for an extra £1 per night.
The joint chairwoman of Anglesey Tourism Association, Nia Jones, is in favour of the proposed tax, stating that some local authorities are also supportive. She believes that the tax would only amount to a couple of pounds extra for the accommodation sector, and that it is important the money raised is spent on the tourism infrastructure. She suggests that if people can see visible and tangible benefits from the tax, they will be more accepting of it.
However, Ms Jones acknowledges that there are opponents to the tax, describing it as a "hot potato" in tourism. She points out that the accommodation sector is still struggling after the Covid-19 pandemic, and that many places are not full for Easter. As a result, there will be a split in how the trade views the tourism tax in Wales. She explains that the industry is still quite volatile after Covid-19, and there is nervousness among businesses operating at the moment.
Lynette Esposito, who runs the Elm Tree Hotel in Llandudno, is concerned that the proposed tax would put people off visiting Wales, and suggests that tourists may choose to go elsewhere instead. She points out that the UK is not short of tourism destinations, and that tourists are discovering new destinations daily. She argues that all these little layers of extra cost will be considered by tourists when making their decision about where to go on holiday. Ms Esposito believes that the threat of losing business is "very real" and calls for a more detailed discussion before any final decisions are made.
The tourism tax is a controversial topic, with arguments on both sides. Supporters claim that it would provide a new source of income for local authorities, which could be used to invest in and maintain holiday destinations. However, opponents argue that it would put people off visiting Wales and would add to the already high cost of holidays. It is clear that the tourism industry is still recovering from the effects of Covid-19, and that businesses are nervous about any additional costs. As with any new policy, it will be important for the Welsh government to consider all the arguments carefully and to consult with the industry before making any final decisions. Photo by William M. Connolley at English Wikipedia.