SAM ROWLANDS, Member of the Welsh Parliament for North Wales, has called for the toxic tourist tax to be scrapped and more to be done to support tourism and hospitality businesses in Wales.
Mr Rowlands, Shadow Cabinet Secretary for Finance and Chair of the Cross-Party Group on Tourism was speaking in the Senedd during a debate on the general principles of the Visitor Accommodation (Register and Levy) (Wales) Bill.
He said: “After 26 years of Welsh Labour, Welsh workers are taking home the lightest pay packets in the United Kingdom. Wales also has the lowest employment rate of any part of the UK, and the lowest levels of gross disposable income per head. And what’s the answer to these problems? Well, for Welsh Labour, as ever, it’s a desire to introduce a new tax, and this one is aimed at people who actually put money into the Welsh economy,
“There is a basic principle truth of taxation, which is, whatever you tax, you get less of, and that’s why we tax things like smoking, because we want less of it to happen. Whatever you tax, you get less of. This tax will cause tourism levels to reduce. This proposal today is the very definition of biting the hand that feeds.
“We’ve heard from parties opposite that this is just a few pounds, a small proportion or a small percentage of a family’s or an individual’s holiday. This is a completely misunderstood perspective. The truth is that this is going to hit people from all sorts of backgrounds going on holiday.
“I would call on Labour and Plaid Cymru here to actually listen to tourism and hospitality businesses.”
The vote on the general principles of the Visitor Accommodation (Register and Levy) (Wales) Bill was passed with support from Labour, Plaid Cymru and the Liberal Democrat, with only the Welsh Conservatives opposed.
The Bill will now progress to the amendment stages in the Senedd for two further votes before it becomes law.
Mr Rowlands added: “Labour and Plaid’s toxic tourism tax will hit the poorest families the hardest.
“On the same day that energy, water and council tax bills all rise substantially for families across Wales, Labour Ministers have chosen to vote through a new tax on domestic family holidays. They are completely out of touch.
“The Welsh Conservatives will not rest until we axe the tax and renew the case for a pro-tourism, pro-business and pro-family tax policy from the Welsh Government.”
