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 Cyngor Dinas Casnewydd | Evidence from Newport City Council
(We would be grateful if you could keep your answer to around 500 words).
Generally, the principles of sustainable tourism are understood and it is recognised that a proposed levy is one method of generating additional income to invest in local areas. There are concerns however that income returns will not be ‘equal’ across Wales and the impact will vary depending on the strength of the tourism offer. Traditional seaside towns or centres of strong business tourism (including Newport) could potentially benefit but we are all competing for business tourism in particular. Bristol is our nearest competitor for business tourism and the ICC Wales competes with convention centre facilities in England. Any consequential reduction in visitor numbers will not provide Local Authorities with additional revenue to invest – but will also impact local supply chains and linked businesses.
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).
A concern for NCC and not quite answered in detail is the management, and administration support required. Based on previous comparable system development and comparable rates collection the levy mobilisation will require significant interaction with all our accommodation partners and stakeholders within the city as soon as possible- of which we have approx. 128 in Newport. The management of such a task will need to be staffed appropriately both during the consultation and implementation period in order to offer support and guidance to said businesses, collect and manage the charges and oversee the mandatory penalty system. Based on the details at this stage, it is unclear on several substantive points relating to development of operating guidelines and ‘seed funding’ management and administration costs before levy income is received consistently. Financial support will be required to ensure that processes and systems are in place prior to implementation.
(We would be grateful if you could keep your answer to around 500 words).
This is considered a significant issue. Loss of accommodation providers who feel they cannot sustain their business with the levy requirement – whether that be from a reduction in demand or concern over complying with the administrative aspect of the levy. Within 128 of our overnight accommodation providers a large number of these are smaller, independent businesses which rely on this income. There is a concern that the withdrawal of this stock from the market will reduce the offer and the attractiveness of the city, region and Wales. There will also be an impact on local suppliers and supply chains, including visitor attractions if there was an unintended reduction in actual visitor numbers. This impacts local jobs and there is unlikely to be any resilience in small businesses to wait for a recovery in visitor numbers/demand.
A pragmatic approach could consider variations or exemptions to support the rollout, excluding small and micro businesses and focussing on larger providers – however this may impact facilities such as ICC Wales where the convention centre market is already extremely competitive. There are significant numbers of local people employed at the Celtic Manor Resort and ICC Wales – as well as extensive local providers and supply chains. Any mandatory implementation of a levy will need to carefully consider administration and the use of technology. It is critical that systems are useable by all providers, including independents and sole traders.
Overall there is a concern that a visitor levy will be negatively perceived by visitors. We could see an increase in day visitors and a decrease in overnight stays which would be detrimental to the overall tourism offer and impact investor confidence in new facilities and developments.
(We would be grateful if you could keep your answer to around 500 words).
Detailed but not evidenced. There is a slight dominance in the assessments about how Welsh government will roll out the bill and offer support, but this support is not evidenced.
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).
Mostly, although confirmation of when and how the levy will be increased year on year would be useful, especially when consulting with key partners on the levy and its introduction.
(We would be grateful if you could keep your answer to around 500 words).
The legislation is not accessible to all providers and operators who may be impacted. Not all accommodation providers are large corporate operators, with some sole traders and small businesses.
(We would be grateful if you could keep your answer to around 500 words).
Further commentary will be made when Welsh government provide the detail relating to Stage 2.
(We would be grateful if you could keep your answer to around 500 words).
None.