Rebecca Evans and Cefin Campbell discuss the visitor levy in Wales, an initiative being taken forward as part of the Co-operation Agreement signed between the Welsh Government and Plaid Cymru.
Authors:
- Rebecca Evans, Welsh Government Minister for Finance and Local Government
- Cefin Campbell, Plaid Cymru Designated Member
In recent years, we have heard much talk from Westminster about levelling-up. Unfortunately, this has not been backed up with tangible action. In fact, what was billed as creating opportunities across the UK has actually delivered less money and the rolling back of the democratically established devolution settlement.
But here in Wales, we have an ambitious, progressive approach and we are taking steps to genuinely empower communities. Giving local authorities more powers to tackle issues they face locally is a key driver for the Welsh visitor levy.
Wales is Open for Business
We are ambitious for tourism in Wales and want to make sure we are showcasing all that we have to offer. Wales attracts millions of visitors every year with our picturesque landscapes, scenic coastal towns, vibrant cities, and distinct cultural heritage; there is something for everyone to enjoy here.
We want to ensure our visitors continue to receive a warm Welsh welcome and leave with cherished memories of their time here. In practice, this means we need sustainable tourism, with visitors making a small contribution towards the public costs of their visit. For example, the maintenance of mountain and coastal paths, the provision of public toilets, the upkeep of attractions, and countless other things that are integral to the visitor experience.
We recognise that tourism looks different across Wales, with some areas hosting millions of visitors and others much less. That’s why we are working towards empowering local authorities to introduce a visitor levy in Wales if they wish to do so.
Empowering Local Authorities
Local authorities will decide whether to introduce a levy in their areas, and the funds raised will be retained and re-invested back into the area. If a local authority does choose to introduce a levy, they will be asking visitors, regardless of whether they have travelled from within Wales or from further afield, to make a small contribution.
It will be paid by people staying in overnight visitor accommodation. No decisions have been made yet about the specific amount a levy would be set at. Where levies are applied across the globe, they generally represent a small percentage of overall visitor spend.
As our proposals have developed, we have met with countries and regions around the world that have successfully implemented a levy, including Amsterdam, Catalonia, New Zealand, and the Balearic Islands, as well as closer to home in Manchester.
Levies are commonplace outside of Wales, and we see no reason why one would not work here. We are taking our time to make sure this is done right. Legislation is due to be introduced in Autumn 2024 for consideration in the Senedd. Pending the successful passage of any enabling legislation, there would be a process of local consultation and decision-making to introduce a levy. It will be a number of years before a levy is introduced in Wales.
We want to make sure tourism in Wales works in the long term, both for visitors and for the communities they are visiting. We want to bring about a sense of shared responsibility between residents and visitors, to protect, and invest in, our local areas. And we want local authorities to feel more empowered to make decisions that benefit their communities.
Widespread Support for a Visitor Levy
This isn’t an idea on a whim. Back in 2017, the idea was suggested as a potential area for revenue raising through a public call for ideas. There was close consultation with representative bodies and experts as the idea of a levy was further developed.
Earlier this year, we commissioned consumer research to learn more about what Welsh residents and UK holiday-goers think of the idea of a ‘tourist tax’. More than 2,500 respondents took part in the survey – 1,005 of whom lived in Wales. Most Welsh residents surveyed agreed that tourists should contribute towards the costs of maintaining and investing in the destinations they stay in.
Unsurprisingly, support for the levy was strongest in areas that attract the most tourists. The survey found that two-thirds of people in Wales who live in tourism hotspots back the introduction of a visitor levy. A common concern is that people would stop visiting Wales if a levy was introduced.
We want to reassure the tourism sector in Wales that over the coming years, we will work with them, the local government, and all our partners to make sure this does not happen. We want to reassure the sector that similar charges are already in place all over the world – to the benefit of tourists and locals. These areas continue to remain popular with tourists and continue to thrive.
We know the levy will need to be fair, it needs to be simple and clear to implement. And this is going to take time. Over the coming months and years, we will continue to work with businesses, local government, and all our partners to design a visitor levy for Wales that will work for everyone.
The introduction of a levy will represent a step forward in local decision-making in Wales. It will put power in the hands of local authorities as we ensure sustainable tourism that benefits all involved. And it will help ensure our communities can extend a warm Welsh welcome for decades to come.
