The Welsh government has been warned that a tourism tax “will affect us all” by tourism officials.
There are plans for overnight visitors in Wales to pay a visitor levy ranging from 75p to £1.25 per night.
An activist group representing tourism bodies in the country has warned that “this is not a tourism tax, it will affect us all”.
The Welsh Tourism Alliance (WTA) has expressed its disappointment over the Welsh Government’s decision to proceed with a policy that could lead to job losses in Wales, Wales Online reports.
Despite being labelled as a “tourism tax”, the group representing tourism providers argues that its impact extends beyond just tourism.
The levy will apply to anyone staying overnight in Wales, whether they’re in an Airbnb, Vrbo, short-term let, hotel, hostel, or campsite. It won’t come into effect until at least 2027.
There will be two levels of charge 75p per person per night for those staying in hostels and on campsite pitches, and £1.25 per person per night for those staying in all other types of accommodation.
However, there are three exceptions to this rule. Each of Wales’ 22 councils will have the autonomy to decide whether to implement such a tax.
Councils will then have the discretion to alter the amount, although any changes would require ministerial approval and further consultation. A new law will necessitate the creation of a register of visitor accommodation in Wales.
This will be the first time such a comprehensive list of visitor accommodation across the country has been compiled, with the register set to be completed by 2026.
The WTA added: “The WTA has engaged with the Welsh Government since the visitor levy was proposed and we are disappointed that they are pursuing a proposal from which their own Economic Impact Assessment predicts net job losses.”
The Welsh government had previously commissioned a socio-economic assessment to evaluate the potential impact of the levy. The study considered three scenarios – a “weak, medium and strong behavioural” response.
In one scenario, it predicted the creation of 100 additional jobs, while a “strong” uptake could result in the loss of 390 full-time equivalent jobs. The middle-ground scenario projected a loss of 140 full-time equivalent jobs.
The assessment warned: “A downturn in demand could, for example, lead through to employers reducing hours, recruitment, investment plans, salaries or, in the extreme, making redundancies.
“This may ultimately impact on employees. These results are inevitably uncertain.”
Former first minister of Wales Mark Drakeford, when questioned about his rationale for the fee structure, explained that a universal charge was a result of industry feedback seeking simplicity in the law’s application.
