Tourism tax plan 'disastrous' for Wales, firms warn

Businesses will close if a tourism tax is introduced in Wales, according to industry leaders.

The Wales Tourism Alliance (WTA) said many feared the tax would lead to fewer visitors as businesses struggled to cope with rising energy bills.

The Welsh government said tourism levies were common across the world and could improve local services.

But one operator said Wales would be in "big trouble" if it became the only devolved nation to adopt such a tax.

The Welsh government was due to to hold a consultation this autumn but firm plans have yet to be announced.

Ashford Price, from the National Showcaves Centre for Wales at Dan yr Ogof in the Brecon Beacons, said: "With inflation perhaps reaching 18% next year, this could be a disastrous decision for the industry."

He said the company had carried out its own survey about a tourism tax among 2,000 visitors, with 70% saying they "would consider going on holiday to another country".

Mr Price explained that visitor numbers have almost returned to pre-Covid levels, with income at about 90% of what it was in 2019.

But he said he was concerned the figures might never recover if an additional tax was introduced.

"If Wales becomes the only devolved nation to introduce this tourism tax, then we're in big trouble," he said.

Hywel Davies, who runs a caravan park in Llangennech, near Llanelli, Carmarthenshire, said it was not the time to introduce a levy, amid concern his annual energy costs could rise by up to £10,000.

"I don't want to have to put our prices up, but we haven't got much choice," he said.

"We're going to have to look at cost-cutting measures.

"We're lucky that the majority of our guests are retired, but then again the cost of living is affecting everyone and it is a real worry."

WTA chair Suzy Davies said: "Businesses have been telling us they're either going to close because they can't cope with the uncertainty or they are certain they're going to go out of business because they can't afford to stay in business.

"It should be a real concern to Welsh government, which will say it is listening.

"Whether it's actually believing what it's been told is a different matter.

"This is not a matter of people just complaining."

The tourism sector was worth about £5bn in 2019 in Wales.

The Welsh government said visitor levies were "common across the world, with the revenue being used to fund projects within communities, the tourism industry and support local business".

"We will be consulting, giving local authorities the option of introducing the levy, and we will consider all comments as part of the consultation process," it said.