A tourist tax has been proposed for Wales which could see tourism in the country negatively impacted. An expert has said it would be a “very risky economic move” as it could jeopardise jobs and businesses.
Charging people extra for overnight stays would mean “taxing something you really want to encourage”, Ben Spier of Sykes Holiday Cottages told the BBC. The Welsh Government is proposing the new tax, and it would see people staying overnight in Wales pay £1.30 plus VAT per night for hotels, B&BS and self-catering accommodation. For hostels and campsites, there would be a charge of 80p plus VAT.
This could come in from 2027 if the proposal is passed by the Senedd, reports BBC.
One benefit of the charge is that it could raise up to £33 million a year, which would be used to support and improve tourism in local areas.
Councils would choose whether to charge the fee or not.
The Welsh Government said it believed “it is fair that everyone contributes towards the services they use”.
Mr Spier, of Sykes, which has 22,500 UK properties including more than 4,000 in Wales, told BBC: “I don’t think a tourism levy necessarily says to visitors, ‘you’re not welcome’. But I think it’s just pure economics. I just think it’s a very risky economic move.”
He added: “There is a risk of just making Wales that bit less competitive.
“We’ve seen the largest theme park in Wales close in the last few weeks because of increasing costs… is this really what you want to be putting a tax on?”
Mr Spier also said that overnight stays are the only form of tourism being targeted, while those who take day trips to Wales will avoid the fee.
According to Wales Online, the levy would sometimes not be payable. These include when the stay is longer than 31 days or at an individual’s sole or main residence.
It will also not be payable when the stay is for emergency or temporary housing arranged by the local authority.
