Welsh Governments research findings are devastatingfor their proposed Welsh Tourism tax.
Despite grave concerns being expressed by all sectors within Welsh tourism the
Welsh Government are bringing forward legislation that will lead to a tourism tax
for Wales.
This proposed tax is set against a backdrop of a ‘cost-of-living crisis’ resulting in
the biggest drop in people’s living standards for 60 years, and the alarming fact
that Wales is already seeing tourist numbers falling by 23% for holiday stays
over the last year. (Domestic GB tourism stats (overnight trips 2022/23.)
The Government’s own tourism tax report gave examples of the impact of such a
tourism tax. e.g. If a five per cent tax was imposed this would have the potential
for a £100 million revenue loss for the Welsh economy, and the resultant
reduction of around 2,500 Welsh tourism jobs, and their associated supply
chains. Their report concluded that for every 1% increase via a tourism tax, there
is a 1% decrease in tourism demand.
(https://gov.wales/sites/default/files/statistics-and-research/2022-09/evidence-
review-of-elasticities-relevant-to-a-visitor-levy-in-wales-331.pdf)
Hundreds of bureaucrats will be employed to inspect, register, value,
implement and enforce the Welsh tourism tax. These bureaucrats create no
additional value to the economy and their creation will be far outweighed by
the number of tourism jobs lost, and the amount of money lost.
The Welsh Government has also never mentioned the fact that around half a
million Welsh residents who annually book overnight holiday accommodation in
Wales will also have to pay this new tourism tax even though they will be
holidaying in their own country!
Many cash-strapped tourists instead of ‘staying overnight’ in Wales will simply
come for the day and spend on average £30. However, if they had
stayed overnight their average tourism spend would have been £184 per day.
To implement a tax on tourists who want to visit Wales at a time of fiscal
uncertainty, and falling visitor numbers is economic madness, especially as Spain
and many other EU countries have a special VAT rate for tourism of 10%.
In the UK the VAT rate is 20% hence, this already makes our Welsh holidays less
competitive than those in Europe.
Ashford Price.
Chairman.
Dan Yr Ogof – The National Showcaves Centre
Having been in Welsh Tourism since 1964 these are my personal views….
Our once great Welsh coal mining industry can now only be viewed in
museums; some of the finest steel in the world was once manufactured in
Port Talbot and global manufacturing names like Ford and Sony have long
vacated Wales. If we allow Welsh tourism to become uncompetitive through
taxation and subliminal messages indicating that Wales does not want or
need tourists in the future for the 200,000 people employed in our tourism
industry is indeed bleak and tourism will become just a seasonal cottage
industry.
