Welsh Tourism Industry Protests Planned to Highlight Controversial Visitor Levy on St David’s Day

Wales’ tourism industry is bracing for a wave of protests on St David’s Day as businesses express growing concerns over the proposed Visitor Levy, the 182-day rule, and increasing government regulations. Several attractions are expected to close, while others may lower their flags to half-mast in a symbolic strike against policies that they argue threaten the future of the sector.

Industry leaders, including CLA Cymru, have voiced their opposition to the levy, arguing that it lacks a solid evidence base and could place an undue burden on small businesses. While CLA Cymru supports sustainable tourism, it warns that the current proposals could harm the sector rather than support it.

The Welsh Association of Visitor Attractions (WAVA), along with organisations such as PASC and North Wales Tourism, is spearheading the protest by shutting down attractions for the day. Their message is clear: anti-tourism policies from the Welsh Government could have lasting economic consequences.

Concerns Over the Economic Impact

Industry representatives recently raised their concerns with Members of the Senedd (MSs), highlighting the potential damage the levy could inflict on Wales’ visitor economy. CLA Cymru Director Victoria Bond warned that the levy could make Wales an uncompetitive destination compared to other parts of the UK.

“The Tourism Levy risks making Wales an uncompetitive destination, particularly when visitors can choose to travel elsewhere in the UK without facing this charge,” Bond stated. “The lack of a clear evidence base behind this Bill is deeply concerning, and we urge the Welsh Government to reconsider its approach before pushing forward with policies that could force rural businesses to close.”

Expert Analysis Calls Policy Into Question

Adding to the concerns, Professor Calvin Jones, who authored the Welsh Government’s own Visitor Levy Economic Impact Assessment, has acknowledged a lack of understanding of the tourism economy in Wales. He described the current state of knowledge as “a very uncomfortable place for Senedd Members to be when they’re trying to make policy or audit policy on tourism.”

Key Risks Identified

CLA Cymru has outlined several potential consequences of the proposed levy, including:

• Economic Losses: Even the Welsh Government’s own estimates suggest a 1.6% decline in visitor numbers, equating to a £40 million revenue loss. With overnight visitors spending four times more than day-trippers, discouraging longer stays could have far-reaching effects.
• Disproportionate Burden on Small Businesses: The policy fails to differentiate between large hotels and small rural accommodation providers, creating a costly administrative challenge for smaller operators.
• Negative Impact on Welsh Competitiveness: Visitors may opt to stay in England to avoid the levy, spending money elsewhere while still benefiting from Welsh infrastructure.
• Unfair Taxation Scope: Children, infants, and Welsh residents will also be taxed under the proposal, potentially discouraging staycations and reducing local spending.
• Lack of Policy Coordination: The levy is set to be introduced alongside stricter business rates for holiday lets and the removal of key tax reliefs, increasing financial strain on small rural businesses.

Calls for Clarification and Policy Review

With concerns mounting, CLA Cymru is urging the Welsh Government to provide urgent clarifications on:

• Support measures for small rural businesses to ease financial and administrative burdens.
• Whether the levy will be uniformly applied across Wales or left to local authorities, potentially creating a “postcode lottery.”
• How premium rate charges will be determined and their alignment with the economic value of tourism in different regions.
• The allocation of levy revenue and whether local authorities will receive sufficient data to measure its impact.

A Threat to Wales’ Tourism Future?

As businesses take a stand on St David’s Day, the tourism industry is making its message clear: without further consultation and a solid evidence base, the proposed Visitor Levy could do more harm than good. With tourism being a cornerstone of the Welsh economy, industry leaders warn that failure to rethink these policies could have serious long-term consequences for rural communities and businesses alike.