Wales to introduce tourist tax in 2027, sparking worry among tourism leaders about deterring visitors through added costs.
The base tax is £1.25 nightly for hotels and B&Bs, while hostels and campsites pay 75p per night. Councils decide if they will enforce the new tax, and the ministers will set maximum premium amounts later.
Many in Welsh tourism didn’t expect this development. Officials are still figuring out fine details, with a fixed, yearly rate per council preferred now.
Mark Drakeford is considering Scotland’s system too. Scotland allows different premiums by region and time, and holiday events could trigger extra fees.
The Wales Tourism Alliance has concerns about VAT. Businesses might add VAT to the basic levy, which could increase the rates to £1.50/90p. Premiums could make it even more expensive.
Next development stages of the Bill will refine this tourist tax.
One commenter says businesses shared feedback for years, while another questions if the benefits of tax rises can be felt. Someone else thinks it could hurt the low paid work of teenagers.
Another asks where the tax money goes with no visible improvements. Someone else thinks the tax matters not for expensive holidays, and the tax might fail because much of the cost happens with administration. Only some visitors will pay.
Daytrippers avoid tax while benefitting facilities according to one commenter. Public toilets, parking spaces and street cleaning improvements all benefit from the tax, and councils seem to target these as intended.
One person is raising the question about caravan occupants: Are they tourists, or should they pay for local services?
Wales holiday locations may suffer, one commenter worries, as North Wales lacks jobs outside tourism. Businesses like pubs and laundries might suffer. Also, daytrippers and camper vans might avoid paying the tax, and foreign holidays may even be cheaper than Wales.
Not all councils will implement the tourist tax. The taxes in France were almost €14 per person per night, one person comments. The commenter also stated the tax compared with France is cheap.