VAB134 Barsby Associates

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 Barsby Associates | Evidence from Barsby Associates 

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).

I do not believe there is sufficient oversight of destination management throughout Wales to justify implementation of a levy at this stage.

When or if a tourism tax is levied all receipts should be hypothecated for disbursement in the Visitor Economy.

Only when constituted destination management partnerships made up of local stakeholders have developed clear strategic goals should funding for these strategies be considered - a Tourism Tax may be one of the considerations.

Whilst the stated general principles are laudable Welsh Government should be under no illusions as to the level of mistrust that exist amongst Visitor Economy practitioners as a result of poorly thought through policies in recent years.

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).

The lack of meaningful destination management throughout Wales is a serious obstacle to a sustainable Visitor Economy. The structure in Wales needs to be in place to oversee and encourage true stakeholder engagement and deployment of sustainable investment.

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).

It seems that the current proposals are likely to cost as much to administer as revenue generated whilst increasing bureaucratic burden on operators. Sustainability is not just about an investment in equipment and processes it as much about educating and encouraging change. A poorly thought through tax raising scheme using sustainability as a cloak of convenience is likely to undermine the Wales reputation as a country of innovators in this field.

The current proposals serve to raise expectations that OverTourism will be solved through levying a Tourism Tax. The cause of and resolution to OverTourism are more complex and requires functional and funded Destination Management Organisations working in collaboration with all stakeholders to deliver collectively owned strategies.

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 poorest and most disadvantaged living in Wales and UK will be hardest hit by these proposals. As previously stated it looks like the cost of collection and administration will  result in minimal revenue generation. Only charging accommodation is punitive especially as overnight visitors already contribute more the the economy and have much less negative impacts on destinations.

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).

That WG does not have a Minister for the Visitor Economy highlights concerns as to the understanding of a diverse sector. Over the past 20 years capacity within WG for overseeing and understanding the Visitor Economy has been eroded to the extent there is a serious doubt as to the ability of Government officials to make informed, pragmatic decisions for the long term sustainability of the sector. This lack of capacity at Government, Local Authority and Regional levels should be addressed prior to meddling with the sector.

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 submission by WTA highlights numerous areas of concern regarding the lack of clarity of this legislation. Especially surrounding refunds and exemptions, the definition of accommodation providers and the number of operators in Wales. There is no guarantee that monies raised will be spent in the Visitor Economy and there are no indications as to how future tax raising levels will be set.

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).

It makes no sense that this will be stage 2 when it should be blindingly obvious that it should be the starting point. Establishing the number of Visitor Economy enterprises in Wales and where they are located is a crucial initial step. Going on to understand the criteria under which they operate and therefore their capacity for growth and sustainability and how they can underpin a strong and unique Welsh Quality Standard is something the sector will support - but these should happen before legislating for tax raising.

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).

Please take a deep breath and think again. Sort out and fund destination management, understand the components of the sector and then think through what measures Government can lead on and participate in for the sake of our sustainable futures!