Welsh tourist tax would be 'final straw' for hospitality businesses

The introduction of a tourist tax in Wales could prove the "final straw" for some hospitality businesses, an industry group has warned.

UKHospitality said an additional charge for overnight visitors could cause "irreparable damage" at a time operators were struggling with soaring costs and staffing shortages.

The trade body issued a warning as a three-month consultation on the proposals comes to an end today (13 December).

The Welsh Government is exploring introducing a small levy on people staying in overnight accommodation in the country.

Each local authority would have the power to decide if they wanted to implement a charge and all funds raised would be re-invested to support local tourism.

More than 40 countries and holiday destinations around the world have introduced a form of visitor levy, including Greece, France, Amsterdam, Barcelona, and California.

When the consultation launched, the Welsh government said a tourist tax would be designed to create a "sustainable approach" to tourism and protect local areas.

However, UKHospitality said it was "the wrong tax at the wrong time" and would place an added burden on businesses.

Earlier this year Welsh hospitality operators told The Caterer they feared the tax was already a "done deal" and their concerns were being ignored.

UKHospitality Executive Director for Wales, David Chapman, said: "It is clear to us that any levy will make Wales uncompetitive compared to other international travel destinations, as in European nations where such a levy is in operation, hospitality business are subject to fewer taxes and a lower rate of VAT.

"Should any visitor levy be introduced in Wales, the money must be ringfenced and operators given full sight and control over where the funds are spent."

If plans go ahead, it would take years for the proposals to become legislation and come into force.

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