Tourism tax will hammer 'another nail in Wales' coffin' some fear
Tourism tax will hammer 'another nail in Wales' coffin' some fear
The charge will be higher than originally planned, but there have also been concerns about how it would work in practice
(Image: Ian Cooper/North Wales Live )
Mark Drakeford has unveiled changes to the proposed tourism tax, officially known as a visitor levy, which will bring in a two-tier charge for overnight stays in Wales. Wales Online readers are very sceptical that the scheme will be beneficial to Wales.
Although the Welsh Government is introducing the law, each of Wales' 22 councils will decide whether to implement it, and must first hold a public consultation with residents, meaning the earliest possible introduction would be in 2027.
Mr Drakeford had previously announced an increase in the charge. Initially, the levy was to be applied at one of two rates to anyone staying overnight, regardless of accommodation type, including Airbnb, Vrbo, short-term lets, hotels, hostels, and campsites. Two charge levels were proposed: 75p per person per night for hostel and campsite stays, and £1.25 per person per night for all other accommodations.
However, concerns were raised by groups such as the Scouts, who argued the policy could lead to "unintended consequences" affecting organisations like theirs. In response, Mr Drakeford announced that exempting under-18s from the lower levy rate would result in higher charges for others, increasing from 75p to 80p and from £1.25 to £1.30 per night.
Mr Drakeford also revealed some additional policy changes. There is a six-month timeframe for local authorities to implement the tax following the initial decision. individuals will be required to pay the levy at the point of departure from their accommodations, rather than upon arrival and the Welsh Revenue Authority will be tasked with managing the collection process.
Mr Drakeford announced an amendment that introduces a six-month transition period commencing when a local authority declares its intention to implement the levy. He explained: "This means there will be additional time over and above that allowed in the original bill for the sector to prepare their systems for advance bookings."
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As it stands, the majority of hospitality providers intend to pass on the additional cost to their customers.
Commenter Crazynosaj thinks: 'They are passing the buck down to local councillors, who therefore become unpopular with their constituents (especially if you rely on tourist income). MS's can therefore retain their position, ensuring that those local councillors toe the party line.'
Pastcaring replies: 'What they have failed to say is that £1.30 is the base charge and councils can add as much to this as they feel fit. The £1.30 will soon be £5 and higher, another nail in Wales coffin.'
Abetterchoice4wales adds: 'I will be staying in England - not paying this tax which will be wasted on trees, buying farms, and giving money to people instead of finding them jobs.'
Tannerbanc says: 'All this complexity to raise how much? It will just deter visitors.'
Gilwern replies: 'Extra tax?! I think if they take soundings of potential visitors to Wales, then they should be paying them to come!'
Gail Oliver agrees: 'Why will people want to holiday in Wales? They have already paid for the holiday, have to pay this extra charge and then be restricted to how fast they can drive. Not much of an incentive is it?'
BrynCartwright adds: 'This is nonsense. People coming to Wales are already spending lots of money. Taxing them is totally unjustified.'
Bobsmoth writes: 'People from Wales will be hit hardest by this tax. I run a glamping site in Wales and around 70% of my guests are from Wales. So yet again the government is taxing its own people the highest for services they are already paying for through their council tax. A family of 5 would have to pay around nearly £100 extra to stay in Wales for 2 weeks. People in Swansea or say Neath for example would have to pay it, People in Bristol or Swindon for example will just go to Devon.'
Incider can't believe it: 'Who in their right mind would want to tax tourists? We should be encouraging them to come here and put valuable money into our failing economy.'
Welshrugby retorts: 'Tell the same thing to people from Liverpool who travel to Manchester. It's £2 plus VAT tourist tax in Manchester! Of course an extra £1.30 per night will stop millions coming to our beautiful country, after all someone paying around £400 per person per week to stay here an extra £1.30 will do damage to the bank balance. NOT!'
'I see the anti Welsh government brigade are back out, whinging about anything and everything, 20mph areas (Which is everywhere in the UK) £1.30 per night Tourist tax (Which is more expensive everywhere else in the UK) Hospital waiting times (Which are falling quicker than the rest of the UK) Give it a rest and have a day off.'
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Howie Oliver agrees: 'Where Westminster fails to provide adequate funding, these sorts of taxes become a lifeline for Wales. Many other countries impose a tourist tax, so good news that Wales is following suit. I find it incredible that the Welsh press is not focussing on underfunding by Westminster. The loss of EU funds has crippled Wales - a self-inflicted wound that continues to punish an already poor country.'
Mick Bennett states: 'This will be the end of our visits to lovely Wales, not because of the cost, it's the principle. Taxed to visit and spend our money? How would the Welsh people feel if the English did the same? Labour promoting Wales? I don't think so.'
How do you feel about the tourist tax becoming a reality? Will it benefit Wales? Have your say in our comments section.
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