Mark Drakeford MS, Cabinet Secretary for Finance and the Welsh Language
The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill is being introduced to the Senedd today.
As one of our Programme for Government commitments, the Bill is a step towards ensuring fairness in the funding of local services and infrastructure, which supports our thriving tourism industry. It paves the way for local authorities to introduce a levy on overnight stays in visitor accommodation, if they choose to do so.
One of the Welsh Government’s tax principles is that our taxes should be developed through collaboration and involvement. Through consultation, continued engagement and the discovery work led by the Welsh Revenue Authority, we have received consistent feedback that we need a form of registration in place to support the levy. This has informed our decision to include a national register of all those providing visitor accommodation in Wales within the Bill.
The register will provide valuable data to inform future tourism development and assist in the efficient collection of the levy, wherever it is introduced.
This Bill is rooted in the principle of fairness. By giving local authorities the power and choice to introduce a visitor levy, based on their local circumstances, it ensures those who benefit from tourism will make a small but important contribution to the maintenance of local areas. They will also be investing in the future of Wales.
Visitor levies play a crucial role in supporting communities and protecting the environment all over the world. Many countries have seen real benefits from the reinvestment of visitor levy funds. We believe such success can be replicated in Wales.
The visitor levy rate is set in the bill as 75p per person per night for stays at campsites (pitches) and hostels and £1.25 per person per night for stays in all other types of accommodation.
If all local authorities introduced a levy, it could potentially generate up to £33m across Wales. Amid significant budget pressures, this additional revenue has the potential to make a substantial positive impact on our communities. The tourism sector is an important part of the Welsh economy, and ensuring its long-term sustainability is a priority.
I welcome the scrutiny of this Bill by Members of the Senedd. It is an opportunity to invest in the future of the visitor economy.