As the City of Edinburgh becomes the first city in the UK to introduce a holiday tax, UKHospitality Cymru has renewed its opposition to similar proposals in Wales.
The organisation has submitted consultation responses to Ynys Môn, Conwy and Gwynedd, reiterating its long-standing opposition to a holiday tax, warning that it will reduce visitor numbers, place destinations at a competitive disadvantage and create additional administrative burdens for businesses already facing significant cost pressures.
While opposing the introduction of a holiday tax, UKHospitality Cymru said that if local authorities choose to proceed, all funds raised should be ringfenced and invested directly into supporting and growing the local visitor economy, with local businesses playing a central role in deciding how the money is spent.
David Chapman, Executive Director of UKHospitality Cymru, said:
“As Edinburgh becomes the first city in the UK to introduce a holiday tax, councils across Wales should take note of the risks these policies pose to local businesses, jobs and visitor numbers.
“UKHospitality Cymru remains firmly opposed to a holiday tax and we have made that position clear in our responses to consultations in Ynys Môn, Conwy and Gwynedd.
“At a time when hospitality businesses are already contending with high operating costs and significant tax burdens, introducing another charge on visitors risks damaging trade, reducing overnight stays and making Welsh destinations less competitive.
“The reality is that, once collection and administration costs are accounted for, a holiday tax is likely to raise relatively limited funds while creating considerable disruption for businesses and local economies.
“If councils decide to introduce these taxes, it is vital that every pound raised is reinvested into supporting the visitor economy and that local hospitality and tourism businesses have a meaningful role in determining how those funds are spent.
“Wales' visitor economy is a major employer and economic driver. The focus should be on encouraging more people to visit and stay longer, not introducing measures that risk putting growth at risk.”
