Plans by the Welsh Government to give local authorities the right to charge people staying overnight in visitor accommodations in Wales will further burden accommodation businesses, leading trade body UKHospitality Cymru says.
The organisation, which represents over 130,000 hospitality venues in Wales, says that any funds raised from the tax must be ring-fenced to be spent on the hospitality, tourism and visitor economy and not be funnelled into day-to-day council spending.
Furthermore, in order for the levy to work, there must be legislative requirements for local authorities to consult with accommodation operators in areas where they are looking to introduce the ‘tourist tax’. Affected businesses must be also be involved in any decision making around how the levy is spent, the body says.
David Chapman, Executive Director of UKHospitality Cymru, said:
“While we don't agree with the introduction of visitor levies, which place an additional burden on already over-stretched businesses and impact the ability of Welsh tourism to remain competitive, should the Bill be passed it's crucial that hospitality is made central to the process.
“The sector must be the primary beneficiary of any funds directly raised, so that we can invest in the local economy, drive job creation, and boost economic growth right across Wales.”
As part of the Bill, due to be introduced to the Senedd on the 25th November, the Welsh Government is also hoping to introduce a registration scheme, followed by a licensing scheme, to bring short-term lets up to appropriate standards of health and safety.
UKHospitality Cymru has welcomed the scheme, which helps to level the playing field by requiring all visitor accommodation to operate safely. However, it’s imperative that the register does not duplicate existing administrative requirements on established accommodation providers who are already heavily regulated, it says.
