VAB63 Evans Hotel Ltd

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 Evans Hotel Ltd | Evidence from Evans Hotel Ltd

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 idea of a tourism tax is absolutely rediculous given the current financail climate. Hospitality is being destroyed by the minimum wage increases, utility prices and food prices. If government continues its foolhardy taxation in this industry there will be nothing left to tax. This sector of the economy needs help not further taxation. A reduction in VAT should be the first step to help, when this was implemented a few years ago, buisnesses started to thrive and the government made more money from profit taxation. Furthermore there should be a cap on what energy companies are allowed to charge in the UK, our current liabilities have trippled over the last 18 months and are a massive burden to the industry. The cost of basic food needs to be addressed and capped to a more affordable price, food is still increasing in price, for no apparent reason. Finally, minimum wage increases, which have gome up over 30% in the last 3 years, IS NOT a solution. Minimum wage levels are fine, its the escalating costs that government needs to address.

How is Welsh Government helping to sustain tourism when it witheld moneys paid by Westminster which was given to ofset buisness rates. The Senedd actions are deplorable and show they have no concept of what is need to sustain tourism in Wales. Tourism tax is just a further example of their ineptitude.

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).

As stated previously. Any further taxation of this industry is absolut suicide. The explanatory memoandum is a complete wast of time, the basics of economy need to be examined and TAX cuts and sensible investment it now desperately needed.

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).

Many buisness going bankrupt

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).

The Welsh Assembly it totaly misguided in what is require to SAVE this industry. Further taxation is the last thing it needs

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).

No. None of them are qualified or have any idea what to do in this industry.

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).

The legislation is totaly incorrect and should not even be considered. I have read that ministers are quoting areas os europe where the tourism tax is a success. This is correct, however, the areas where it is a success already have hospitality subsaties and pay on average between 7 to 10 % in vat. If our VAT was around these levels, we would be able to pat the Tourism Levi

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).

No. It should not happen

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).

The bill will be another nail in the coffin of an alread weak sector. Support is required not further taxation.