A written question on the Welsh Tourism tax was tabled in the National Assembly of Wales on 23 September 2022 and answered on the 3 October 2022.
Andrew R.T. Davies asked: “How can the Welsh Government guarantee that any tourism tax receipts will be spent on improving or maintaining tourism facilities?”
Minister for Finance and Local Government responded: “Through our extensive discussions with representatives from the tourism industry, local authorities, and other organisations, the benefits and challenges associated with hypothecation (ring-fencing) has been consistently raised.
“A specific question asking whether individuals agree or disagree with such an approach has been highlighted within the visitor levy consultation to ensure we capture views and preferences from stakeholders. It is also clear that there is a need for transparency and engagement in how revenues would be allocated, and questions exploring these themes are also included within the consultation. The visitor levy consultation launched on 20 September and can be found via Discretionary visitor levy for local authorities | GOV.WALES.
“Revenues raised from a discretionary visitor levy are intended to be re-invested locally to support the local visitor economy. We recognise that the optimum way to spend revenue from any visitor levy will vary by local area and spending priorities and demand will vary by location.
“A visitor levy would help ease financial pressures faced by local authorities to support public services and infrastructure related to tourism. It would also provide new opportunities for funding of local projects and initiatives at a local level which could benefit the community. Ultimately, we want to empower local authorities to make their own decisions according to the needs of their communities.
“Final decisions regarding a visitor levy will be taken following due consideration of consultation responses and all available evidence. This work is being carried out as part of the Co-operation Agreement between the Welsh Government and Plaid Cymru.”