Wales’ Labour tourist tax branded ‘toxic’ as hospitality chiefs call for major change

Hospitality chiefs in Wales have called for a major change to a looming tax, with the Welsh branding the plans “toxic”.

The Welsh Labour Government is set to bring in its “visitor levy”, from 2027, though individual county councils will decide whether or not to collect the tax in their area.

Visitors would be charged £1.25 per night for most accommodation, with camping pitches and dormitories at a reduced rate of 75p.

But UKHospitality Cymrum, a trade body representing hotels, pubs, restaurants and indoor leisure, says the charge shouldn’t apply to children.

The organisation is instead demanding that the country adopt rules akin to other countries that impose fees on , reports.

Some countries, including Greece and Germany, do charge irrespective of age. But others, like France, give exemptions for most children under 18, and elsewhere there are various age exemptions from the age of 10 upwards, the outlet reports.

UKHospitality Cymru’s executive director, David Chapman, said that making trips more expensive could negatively affect visitor numbers and hurt Welsh .

“We need to see them exempt children from the levy, to ensure families, many of whom may already be on tight budgets, can enjoy holidays in , rather than elsewhere,” he said, as per the outlet.

Commenting, Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS, told Express.co.uk: “Labour’s toxic tax will put off visitors to , hamstringing our economy which relies on the industry.”

“By Labour’s own figures, hundreds of hospitality jobs per year could be lost and GVA could be hit by over £60 million annually,” he added.

“We should immediately axe this tax and instead restore the business rates relief for the retail, hospitality and leisure sectors that Labour cut here in Wales.”

Cardiff argues the levy will could raise as much as £33m per year and would help fund reinvestment for local areas.

Exemptions for children and teenagers had been considered by the Government, however initial estimates suggested that an exemption for under 16s could potentially cut Welsh levy revenues by about a third.

As a result, rates imposed on adults may have to be increased, according to the Government’s impact assessment.

It also pointed to complications and additional costs associated with collected visitors under 18, who are unlikely to be carrying ID, and decided on a general levy at “lower rates compared to many similar levies overseas”.

However, it has designed a lower rate for those accessing hostels and campsites, in recognition of that fact these are cheaper accommodation types which may be more likely to be accessed families or groups on lower incomes.

The funds generated by the levy will be allocated specifically for schemes related to , potentially including things like transport upgrades and the creation of amenities that are beneficial for both local people and visitors.

UKHospitality Cymru is concerned that the current plans are too broad and is for a “displacement principle” to be introduced, ensuring that proceeds from the tax not used to make up for shortfalls in local authority funding.

It has also called for specific clauses in the legislation to limit how money is spent, with all revenues ring-fenced for schemes that “demonstrably, tangibly and directly benefit the tourism sector”.

A Welsh Government spokesperson said: “Tourism makes an important contribution to the Welsh economy and to Welsh life. We want to ensure its long-term sustainability.

“We have taken a fair approach to application of the levy and the Bill proposes keeping rates low, avoiding the need for more exemptions and nil rates, which would produce significant challenges for both visitors and accommodation providers.

“As set out in the Bill, any money raised would have to be reinvested in the local area to provide and improve services for visitors and residents. The money would be held in a separate account with councils required to publish an annual report to show how any revenue has benefited their local area.”