Will the Minister provide an estimate of the annual revenue from the tourism tax?
We are currently developing proposals for a visitor levy to be introduced to the Senedd this term. Details of the levy design, including rates, are yet to be finalised following consideration of all evidence available. However, we intend for the levy to be a small charge that visitors pay to stay overnight which will be re-invested back into the area. It will be for local authorities to decide whether they use a visitor levy. Revenue generation and cost of administration will be variable across local authorities in Wales as the size of the visitor economy varies by destination.
The partial regulatory impact assessment (PRIA) (gov.wales) evaluated several options for implementing a visitor levy and the potential costs and benefits arising to each of the identified groups impacted by the levy. We have commissioned additional research, which will help develop the Explanatory Memorandum and Regulatory Impact Assessment to accompany the Bill upon introduction into the Senedd.
This work is being carried out in collaboration with Plaid Cymru, as part of the Co-operation Agreement.