FIN(6)-05-25 P3

VAB42 Welsh Association of Visitor Attractions

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 Cymdeithas Atyniadau Ymwelwyr Cymru | Evidence from Welsh Association of Visitor Attractions  

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).

Tourism Levy

Economic Impact Assessment of the introduction of a Visitor Levy conducted by Calvin Jones of Cardiff Business School in conjunction with the Welsh Government.

Based on an Estimated a 1.6% drop in Visitor Numbers.

Scenario High Impact - 

A loss of 730 Sector Jobs with an income reduction of £47.5 Million – (GVA of £26.8 M)

Total Loss £74.3 million

Scenario Medium Impact –

A loss of 485 jobs with an income loss of £31 M – (GVA £17.7 M)

Total Loss of £48.7 million

Scenario Low Impact –

A loss of 250 jobs with an income loss of £16 M – (GVA £9.1 M)

Total Loss of £25.1 million

Estimated funds the levy will generated to be £33 million less WRA costs / local authority costs etc.

Show me the economic sense of this exercise.

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 charges are too high. It will cost two adults and two children nearly £40 for one week and £70 for two weeks. Many will simply go elsewhere.

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).

https://gov.wales/sites/default/files/statistics-and-research/2022-09/evidence-review-of-elasticities-relevant-to-a-visitor-levy-in-wales-331.pdf) *(Domestic GB tourism stats (overnight trips 2022/23.)**Report produced by Calvin Jones of Cardiff Business School and Welsh Government.***Professional Association of Self-catering  surveys.

Please note that this press release has an embargo until 9.00 am Monday 9th December.

In the latest commissioned W.G. report,** your own findings were that in the worst scenario over 700 tourism jobs could be lost by this tax, with a revenue loss of £40 + million. W.G. figures were based a reduction of 1.6% in visitor numbers

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).

Last year Wales lost 23% of its overnight stay visitors. Few if any Welsh attractions have caught up on their visitor numbers since Covid, and 60% reported in 2024 that their visitor numbers had declined from 2023.

To put a tax on visitors when Wales is experiencing a decline in trade compared to other regions is sheer madness and shows how out of touch [redacted – named Member of the Senedd] is. Average wage in Welsh Valleys £28/30K his salary £75 plus no wonder he does not think people will mind paying an extra tax based on his salary.

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).

Should be put to a referendum as this proposed bill could be catastrophic for the future of Welsh tourism especially as people experiencing biggest drop in living standards in 60 years.

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).

Only that the legislation should be scrapped.

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).

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).

No