Senedd Vote Marks Progress on Tourism Levy Bill, but Concerns Remain

The Senedd recently voted in favour of the Visitor Accommodation (Register and Levy) Wales Bill, moving it closer to becoming law despite ongoing concerns. The vote followed months of advocacy from CLA Cymru, which had submitted detailed evidence to the Senedd Finance Committee and directly engaged with Members of the Senedd (MSs) to highlight the bill's potential impact on Welsh tourism and rural communities.

A key success for CLA Cymru last month, was the Finance Committee's recognition of the lack of robust data supporting the Bill. In our evidence, we argued that the Welsh Government had not adequately assessed tourism productivity, visitor spending habits, or the wider economic impact of the levy, especially when considered alongside other tourism policies like the ‘182 days’ rule. The Committee’s report echoed this point, citing Professor Calvin Jones’ view that policymakers are in an “uncomfortable place” due to the lack of comprehensive economic analysis.

Another major concern raised by CLA Cymru was the potential economic risk posed by the levy. Our submission highlighted that adding extra charges to overnight stays could deter these visitors who economically contribute more to local businesses. The Committee acknowledged this issue, recommending that the cumulative impact of tourism policies be properly assessed. They also called for a formal economic review within four years of the levy’s implementation.

CLA Cymru also focused on the potential administrative burden the levy would place on small rural businesses, as well as more bureaucracy in terms of management at local and national level. The Committee agreed, urging the Welsh Government to offer clear guidance tailored to small operators.

The vote in the Senedd saw 40 members in favour, 15 against, and one abstention.. While the bill passed, CLA Cymru secured a significant win: the exemption of children under 18 from the levy, recognising their minimal impact on local infrastructure. However, the charge itself has increased slightly for other visitors, now set at £1.30 and 80p respectively.

Despite the bill passing, financial concerns remain. An impact assessment estimates that if all councils introduce the levy between now and 2035, it could raise £264 million. However, this must be weighed against projected total costs of £313 million to £576 million, raising questions about the levy’s financial viability.

Further complicating the matter, Pembrokeshire, a key tourism area, has stated that it will not be adopting the levy, further questioning the potential income.

From our research on tourism strategy, we believe a more holistic approach is needed, one that reduces bureaucracy, supports sustainable initiatives, and increases quality tourism for Wales.

The journey of this bill is far from over. CLA Cymru remains committed to advocating for rural businesses throughout the next stages as the bill moves to detailed amendments before a final vote.