VAB9 Lucas Boissevain

Senedd Cymru | Welsh Parliament

Y Pwyllgor Cyllid | Finance Committee

Bil Llety Ymwelwyr (Cofrestr ac Ardoll) Etc. (Cymru) | Visitor Accommodation (Register and Levy) Etc. (Wales) Bill

Ymateb gan Lucas Boissevain | Evidence from Lucas Boissevain

General principles

1. What are your views on the general principles of the Bill and the need for legislation to deliver the Welsh Government’s stated policy objective, which is to:

§ ensure a more even share of costs to fund local services and infrastructure that benefit visitors between resident populations and visitors;

§ provide local authorities with the ability to generate additional revenue that can be invested back into local services and infrastructure to support tourism;

§ support the Welsh Government’s ambitions for sustainable tourism?

(We would be grateful if you could keep your answer to around 500 words).

The Levy is predicated around overnight visitors staying with qualifying accommodation providers only.

Day visitors are not with the scope of the Levy.

Day visitor attractions should be within the scope of the Levy too.

Surely the business rates generated by tourism related businesses make an adequate contribution to support local authorities.

The Bill’s implementation

The Regulatory Impact Assessment is set out in Part 2 of the Explanatory Memorandum (https://senedd.wales/media/g5ipwvwh/pri-ld16812-em-e.pdf). This includes the Welsh Government’s assessments of the financial and other impacts of the Bill and its implementation.

2. Are there any potential barriers to the implementation of the Bill’s provisions? If so, what are they, and are they adequately taken into account in the Bill and accompanying Explanatory Memorandum and Regulatory Impact Assessment?

(We would be grateful if you could keep your answer to around 500 words).

Breach of human rights in that this levy unfairly apportions the burden to those providing overnight accommodation and their ability to earn a decent living.

3. Are any unintended consequences likely to arise from the Bill?

(We would be grateful if you could keep your answer to around 500 words).

Given the depressed nature of the tourism sector in the current climate this levy will serve to drive providers out of the sector.

4. What are your views on the Welsh Government’s assessment of the financial and other impacts of the Bill?

(We would be grateful if you could keep your answer to around 500 words).

I am not sure that the Welsh Government or local authorities have a record of sound business investment. There are a great many white elephant developments supported by the Welsh Government like "circuit of wales" to name but one.

Subordinate legislation

The powers to make subordinate legislation are set out in Part 1: Chapter 5 of the Explanatory Memorandum (https://senedd.wales/media/g5ipwvwh/pri-ld16812-em-e.pdf).

The Welsh Government has also set out its statement of policy intent for subordinate legislation (https://business.senedd.wales/documents/s155951/Statement%20of%20Policy%20Intent.pdf).

5. What are your views on the balance between the information contained on the face of the Bill and what is left to subordinate legislation? Are the powers for Welsh Ministers to make subordinate legislation appropriate?

(We would be grateful if you could keep your answer to around 500 words).

Not qualified to comment!

Other considerations

6. Do you have any views on matters related to the quality of the legislation?

(We would be grateful if you could keep your answer to around 500 words).

I feel the registration of operators is a good idea and a small fee to support the cost of administration of the register is a good idea. However the compilation of a register, may infer recourse to the regulator for compliance breaches if the register is not maintained.

7. On 26 November, the Cabinet Secretary wrote to the Finance Committee with some indicative additional registration and enforcement provisions (https://business.senedd.wales/documents/s155952/Letter%20from%20the%20Cabinet%20Secretary%20for%20Finance%20and%20Welsh%20Language%20Indicative%20Stage%202%20amendments%20that%20.pdf) he intends to bring forward at Stage 2 of the legislative process (https://senedd.wales/NAfW%20Documents/Assembly%20Business%20section%20documents/Guide%20to%20the%20Legislative%20Process/Guide_to_the_Legislative_Process-eng.pdf).

Do you have any views on the indicative additional registration and enforcement provisions the Welsh Government intends to bring forward at Stage 2?

(We would be grateful if you could keep your answer to around 500 words).

Any failure to register or failure to comply would need enforcing!

8. Are there any other issues that you would like to raise about the Bill, the accompanying Explanatory Memorandum and Regulatory Impact Assessment, or any related matters?

(We would be grateful if you could keep your answer to around 500 words).

I am still perplexed by the argument that the tourism and particularly the accommodation sector pay the levy only. Also I feel that those operators who trade all year around ought to be helped out as they provide employment and amenity all year to visitors and locals alike, which is the Welsh Government objective. Those that employ seasonally enjoy a far better return on investment but do not give continuity of employment, and operate with a lower skilled workforce. This bill will simply serve to drive a sector already burdened with the impact of high levels of indirect and direct taxation, minimum wage legislation, etc, into the ground. This winter we see intense pressure on those attempting to trade through it especially in rural communities. The minimum wage increase in the spring will likely create more negative cost pressure. All brought to bear not by markets but by respective governments, and we can't simply keep putting up prices. Visitors will just go abroad.