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 Snowdonia Hospitality & Lesiure | Evidence from Snowdonia Hospitality & Lesiure
(We would be grateful if you could keep your answer to around 500 words).
Welsh Government has consistently mislead the public to develop a devise narrative that 'visitors' need to pay their fair share to meet the impacts and consequences of their visits. This narrative is completely false due to business rates being assessed on turnover within businesses none of which would be possible without the visitor economy. This includes all visitor types, day or night, business or leisure. In addition, whilst WGs own draft economic study accepts price elasticity, this relationship can not be certain, as illustrated by the bag tax at 5p which radically changed consumer behaviour, far beyond the monetary amount. Taxation of over night guests is completely counter to sustainable tourism as is the taxation of children holidaying.
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.
(We would be grateful if you could keep your answer to around 500 words).
This is a regressive tax on working people and particularly families. VAT status layers further complexity. Our business alone will need to request bespoke property management software and double check 20k customer bills. We will need to ask for proof of ID and age verification for 'children' as age is now significant. This is a operational barrier.
(We would be grateful if you could keep your answer to around 500 words).
Displacement of business to non-taxable areas, particularly family holiday makers due to children's charge. Welsh people being taxed to holiday within their own country when they could cross to England and save a significant amount of cost. There will a devise and unwelcoming message decimated in to communities driving up divisive agendas. Money will be raised that won't be able to spent within areas as envisaged due to local planning policies.
(We would be grateful if you could keep your answer to around 500 words).
It is scant and light weight, deliberately orientated for the political purpose of introducing the Bill rather than adequately considering the risks of negative impacts. It grossly under estimates price elasticity and potential negative impacts and which stakeholders actually carry the risk of any negative impacts. It relies upon the false assumptions when looking to other territories that have similar charges, specifically failing to properly account for the actual tax landscape Welsh business operate in namely, VAT at 20% for all services, relatively higher Statutory Wage Rates and Business Rates assessed on turnover rather fixed property taxes.
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).
(We would be grateful if you could keep your answer to around 500 words).
Welsh Ministers have showed a consistant lack of understanding and ability to take account of feedback by those who will bear the legal obligation and any financial negative impacts as stakeholders of The Bill. Having attended at least 3 WG events with Ministers' present, NOT ONCE has any Minister engaged via Q&A: they have delivered a prepared speech and then immediately left the venue, leaving only Government Officers to field questions.
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(We would be grateful if you could keep your answer to around 500 words).
Enforcement will be patchy at best, poor at worst with only responsible businesses registering. These business are likely to be already registered for business rates and VAT and therefore registration is just another tier of cost and administration. Irresponsible business will not be deterred from operating outside the scope of the Bill as amounts of VAPs will easily be saved by non compliance costs, no collection of visitor taxes and registration fee.
(We would be grateful if you could keep your answer to around 500 words).
The Bill will cost more than it will raise, damage the reputation of Wales in the view of its nearest and largest market, England, whilst failing to deliver anything tangible or that could not already be delivered via appropriate management. Local community agendas will be able to radically intervene within the local economy for which they bear no liability should those impacts be negative.