A tourism expert has warned that proposals for a tourism tax would seriously harm Welsh businesses.
In a report commissioned by the Wales Tourism Alliance, Professor Annette Pritchard said that a tourism tax will “damage (Wales’) economic performance, brand and prospects”.
Welsh Conservatives oppose the Welsh Government’s proposed tourism tax – an idea currently being considered by the Labour-led Senedd AMs as a potential new levy to raise money for the industry.
Opponents argue that the impact of a tax would be the opposite to its desired impact; and instead of creating a new fund to boost Welsh tourism, a tax on holiday-makers drive prices up, costing jobs and making Wales a less attractive holiday destination.
In the report, Professor Pritchard warns, “The imposition of higher taxes has been shown to inhibit growth, employment, revenue and holiday-making. Tourism outperforms all Welsh Government priority sectors and is the country’s second largest employer. A proposed tourism tax will damage its economic performance, brand and prospects.”
She also warns that such a tax would “disproportionately impact those least able to afford to take a holiday.”