Drakeford: Visitor levy will sustain Welsh tourism
Drakeford: Visitor levy will sustain Welsh tourism
Former First Minister and current Finance Cabinet Secretary Mark Drakeford has defended Wales’ visitor levy plans, describing it as a modest, locally decided measure designed to reinvest in and sustain the country’s tourism industry.
The levy, which is set to be introduce by the Welsh Government in 2027 at the earliest, would give councils the option to charge visitors a small fee for overnight stays in hotels and other types of tourist accommodation. Drakeford emphasised that the power would be “permissive,” allowing each local authority to choose whether to implement it.
Where a visitor levy has been introduced, the levy rate is a per person per night charge on overnight accommodation, set as:
- £0.75 per person per night for those staying at campsites (pitches) and hostels, excluding people under the age of 18
- £1.30 per person per night for those staying in all other visitor accommodation types (all ages)
The levy will not be payable for stays in visitor accommodation where the:
- Stay is longer than 31 days
- Stay is at an individual’s sole or main residence
- The stay is for emergency or temporary housing arranged by the local authority
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“If [councils] do [introduce it], then a very modest amount of money will be added to the bill of people staying in hotels or other parts of the tourism accommodation sector,” said Drakeford. “That money will be collected and used by local authorities to reinvest in the conditions that make tourism a success here in Wales.”
Drakeford argued that the levy offers a way for visitors to contribute to the public infrastructure and amenities that make destinations attractive in the first place, noting that the cost would be minimal: “less than the price of a cup of tea, less than the price of a sausage roll;” he said.
“The levy is about helping to sustain the industry on the one hand,” he added, “and asking visitors to make a small contribution to the costs that are inevitably incurred when you’re providing facilities to make an area welcoming.”
Addressing some of the criticism and concerns raised by tourism businesses and local residents, Drakeford acknowledged that “change is always difficult” and that “people are often anxious about things they haven’t faced before.”
However, he pointed to international and UK examples where similar schemes have already been implemented, including in Liverpool and Scotland. “If those people who are anxious look around the world, they will see these sorts of levies are common everywhere. They’re becoming more common inside the United Kingdom.”
Drakeford insisted the measure would strengthen tourism over the long term, especially considering the challenges brought on by the COVID-19 pandemic. “Our scheme will underpin the industry for the future and make sure that it can continue to be a success story.”
“I think in practice, those anxieties will be very quickly allayed. We want people to continue to visit Wales, to go on holiday inside Wales, and then to make that very small contribution,” he said. “Businesses will soon get used to it, and I think it will become part of the way we sustain the ecosystem of a very successful industry.”
The policy has proved unpopular with businesses and opposition politicians alike.
Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: “Labour and Plaid’s toxic tourism tax will hit the poorest families the hardest.
“On the same day that energy, water, and council tax bills all rise substantially for families across Wales, Labour Ministers have chosen to vote through a new tax on domestic family holidays. They are completely out of touch.
“The Welsh Conservatives will not rest until we axe the tax and renew the case for a pro-tourism, pro-business and pro-family tax policy from the Welsh Government.”
