Hotel Wrexham owner voices concerns over Wales tourism tax
The Welsh Government is proposing to allow councils to charge £1.30 per night in a tourism tax for guests staying in hotels, bed and breakfasts and self-catered accommodation. A lower rate of 80p would apply to hostels and campsites.
Councils would have to opt in to the scheme once the Senedd makes it legal, which could be as soon as 2027.
Finance Secretary Mark Drakeford previously said: 'This Bill is rooted in the principle of fairness. We know tourism makes an important contribution to the Welsh economy and to Welsh life. We want to ensure its long-term sustainability.
'That's why we believe it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience. Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.
'Money raised through a levy would be retained by local authorities and re-invested back into their local areas to support local, sustainable tourism. It's a small contribution that could make a big difference.'
Steven Hesketh (left) and Dan Gillon (right), co-owners of Hotel Wrexham. But Hotel Wrexham co-owner Steven Hesketh has voiced his concerns over the proposed tourism tax.
He states that he is behind a levy being introduced in a bid to raise funds for the sector, but that businesses should be the ones managing it.
Mr Hesketh said: "I'm very strongly against a tax. I am behind a levy that can be managed by the businesses in a local area. We don't have a choice at the minute, the tourism tax is being forced upon us.
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"As far as I'm aware, the tax is being imposed by Welsh Government then councils are allowed to decide whether they want to impose it or not. You'd want the businesses to decide essentially as I'm unsure if the tax would appeal to visitors in Wrexham."
Amid increasing costs and a "challenging" year, Mr Hesketh said that he believes the tax will affect customers more in Wrexham than in other cities.
He added: "This year has been more challenging than last year in an accommodation sense and we're facing increasing costs as well.
"Things are price sensitive really, Manchester is used to having a levy cost, I'm not sure that will be the case in Wrexham. Our audience is more people who come back year in year out.
"It's a more risky introduction to do it this way and I think customers will feel it more compared to other cities like Manchester, who have a more international audience.
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"There is the possibility that people will go elsewhere, I've experienced that previously and seen it with the improvement of Wrexham. Wrexham is currently on a trajectory thanks to (Rob and Ryan) and it's brilliant, that's kind of why we invested as we saw the potential.
"We still need to grow hospitality in Wrexham, whilst it has improved, no where is really bulging unless there is a big event. I don't think the council will do anything without consulting businesses."
Senedd members voted in favour of the tourism tax bill following a debate on April 1 during which ministers announced plans to raise the rates to create an exemption for children.
The bill now moves to stage two, detailed amendments in the finance committee, before a further amending stage in the Senedd chamber and a stage-four vote on the final version.
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