Commenting on the Welsh government consultation on a proposal for a visitor levy, which would be chargeable by local authorities at their discretion on overnight stays in Wales, the CIOT makes a number of key points:
Introducing a levy on providers of overnight accommodation but not other parts of the tourism industry could be seen as inequitable or, as the CIOT comments ‘even as a perverse incentive not to stay overnight’.
The objective of the levy is to balance costs between residents and visitors, hence the targeting of overnight stays. The CIOT notes that costs relating, for example, to traffic congestion and parking also affect residents but would escape the charge, with significant practical challenges around collecting a levy on day visitors. Charging a seasonal levy for various services including parking in areas with high visitor numbers might be one potential option.
A clear national framework for the levy would ensure consistency and ‘coherence with the Welsh government’s core tax principles’. Although, allowing local authorities leeway to set their own rate would potentially enable them to reflect local circumstances and needs without compromising the benefits offered by a national framework.
If a modest levy is deemed to be a success, issues around whether and how the levy should apply to other areas should be considered.
Commenting on the Welsh government consultation on a proposal for a visitor levy, which would be chargeable by local authorities at their discretion on overnight stays in Wales, the CIOT makes a number of key points:
Introducing a levy on providers of overnight accommodation but not other parts of the tourism industry could be seen as inequitable or, as the CIOT comments ‘even as a perverse incentive not to stay overnight’.
The objective of the levy is to balance costs between residents and visitors, hence the targeting of overnight stays. The CIOT notes that costs relating, for example, to traffic congestion and parking also affect residents but would escape the charge, with significant practical challenges around collecting a levy on day visitors. Charging a seasonal levy for various services including parking in areas with high visitor numbers might be one potential option.
A clear national framework for the levy would ensure consistency and ‘coherence with the Welsh government’s core tax principles’. Although, allowing local authorities leeway to set their own rate would potentially enable them to reflect local circumstances and needs without compromising the benefits offered by a national framework.
If a modest levy is deemed to be a success, issues around whether and how the levy should apply to other areas should be considered.
