Written question WQ84017

Current evidence suggests no definitive answer on the effect of local tourism levies with regard to annual spend, and there are many factors which impact job opportunities in the sector.

The literature indicates that economic impacts from introduction of a tourism levy have been minimal in other countries, though the evidence base on impacts is limited. Any local tourism levy powers which are introduced will be discretionary, therefore impacts and benefits will be variable across Wales. Funds raised by the levy will be invested back into the local services and provisions which make tourism a success in Wales.

We are currently undertaking a review of research and impact analysis of tourism levies that have been introduced in other countries. This will help us understand potential impacts for Welsh regions and local communities. Additionally, we will commission our own research to understand potential economic and behavioural impacts.

Impacts and benefits will be variable depending on the type and design of a levy. The need to generate revenues to support local services will be balanced with the need to maintain competitiveness for the sector. Our initial impact assessment will be published in alignment with the launch of the formal consultation. The assessment will be continually updated as we progress with policy design and gather the results of research. This activity will be informed by extensive engagement with partners.

This work is being carried out in collaboration with Plaid Cymru, as part of the Co-operation Agreement between the Welsh Government and Plaid Cymru.