A proposed visitor levy for Wales could “transform tourism” as long as local authorities follow international best practice, according to research.
Bangor University has published a report detailing the impact of visitor levies around the world. The report, funded by Welsh Government, analyses the visitor levy in seven different international destinations.
It draws clear recommendations for how local authorities should implement a new tax in Wales, focusing on how the revenues from the tax should be disbursed, and how the impact of that spending should be evaluated.
Earlier this week a Bill to give local authorities the option to introduce a visitor levy in their area to re-invest in tourism was introduced by Finance Secretary Mark Drakeford.
The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill proposes that people staying overnight in Wales will pay a charge. The money raised will support local tourism activity and infrastructure, Welsh Government said.
Dr Rhys ap Gwilym, Senior Lecturer in Economics at Bangor Business School, conducted the research with his colleague Dr Linda Osti, Senior Lecturer in Tourism Management, Bangor University.
Rhys said:
“Tourism is an important part of the Welsh economy, but at present it is characterised by low wage, seasonal jobs and doesn’t always bring great benefits to communities.
“The Visitor Levy has the potential to transform the sector in Wales, so long as councils follow the international best practice that we have presented in this report.”
Linda Osti pointed to Destination Management Organizations (DMOs) in South Tyrol, Italy, which were established to facilitate its visitor levy.
“DMOs at the local level use levy revenues in the best interests of both the tourism sector and the wellbeing of local communities,” Linda explained. “We’ve seen examples of those funds supporting affordable housing, public transport, and even sponsoring local radio stations. Such models could greatly benefit Wales if implemented thoughtfully.
“Funded projects should align with clear objectives, whether aimed at enhancing the sustainability of the tourism industry or supporting host communities' cultural, social, or environmental well-being.”
Rhys ap Gwilym called for public accessibility to details of funded activities to build trust and ensure accountability.
Responding to the publication of the Bill, the Wales Tourism Alliance (WTA) said it was “disappointed” with the contents, adding that it felt Welsh Government had missed an opportunity to deliver “a gold standard in tourism and accommodation”.
Instead, warned the WTA, if the Bill passes it will make Wales more expensive for visitors without any perceived added-value for visitors.
