Welsh tourism tax would harm economy, says report

A Welsh tourism tax would both damage the economy and increase social exclusion, an academic has warned.

Prof Annette Pritchard's report, for the trade body the Wales Tourism Alliance, comes as Welsh ministers consider whether to ask UK ministers if they can introduce such a tax.

Prof Pritchard said higher taxes on tourism inhibit growth, employment, revenue and holiday-taking.

Such a new tax is one of four being considered by the Welsh Government.

It might mean a small per night charge for visitors staying in accommodation.

Some industry figures have warned it could have a "devastating effect" on businesses and deter visitors from coming to Wales.

Prof Pritchard says the UK already has "one of the world's highest tourism industry tax burdens".

Her report concludes: "Most European countries have chosen to significantly reduce the VAT on their tourism industries to encourage growth, employment and revenue.

"The imposition of higher taxes has been shown to inhibit growth, employment, revenue and holiday-taking.

"This will hit those who are least able to afford to take a holiday, further excluding them from citizenship and social inclusion in an everyday practice, which many of us take for granted."

Conservative economic spokesman Russell George urged Welsh ministers to "reassure the sector that this terrible idea is a non-starter".

"It's the job of Welsh Government to attract people to come and spend money visiting our beautiful country - not meet them at the airport and fleece them," he said.

A Welsh Government spokesperson responded: "The cabinet secretary for finance confirmed a shortlist of four new tax ideas in October - a disposable plastics tax; a social care levy; a vacant land tax and a tourism tax.

"We have sought people's views on these ideas via a social media questionnaire and have worked with stakeholders as we have looked at the evidence for each of the ideas.

"The cabinet secretary will make a decision shortly on which of these he will take forward to the UK Government to test the Wales Act 2014 mechanism for proposing new taxes in areas of devolved responsibility."