Anglesey delays decision on introducing visitor levy

PASC Cymru has hailed a decision by the island’s full council as a “victory for common sense and for listening to the evidence.”

The Professional Association of Self-Caterers (PASC UK) supports the self-catering, short-term lets and holiday lets sector in England and Wales.

A report presented to island’s full council earlier today (Thursday, 24 September) highlighted the pressures facing the tourism sector.

A public consultation had shown “strong opposition” to the idea among tourism workers, business owners/managers and visitors, whilst residents had been “more divided,” although opposition had still slightly exceeded support at more than 58%, a council report noted.

This was together with the findings of an economic impact assessment and a recent public consultation.

The Visitor Levy, enabled through Welsh Government legislation, allows local authorities to introduce a charge on overnight visitor accommodation, with revenue used to support services and infrastructure linked to tourism.

The economic pressures facing many tourism and hospitality businesses, including inflationary pressures, changing consumer spending patterns and wider economic uncertainty was considered.

Members considered the importance of tourism to Anglesey’s economy and the potential impact of any measures affecting the sector’s competitiveness.

The Economic Impact Assessment had also highlighted “uncertainties around the potential local impacts of a visitor levy”  including the possible effects on visitor demand, business revenues and employment within parts of the tourism sector.

It also noted that impacts could vary depending on how visitors and businesses respond, particularly if neighbouring destinations do not introduce similar charges.

A public consultation had gathered the views of more than 2,000 residents, businesses, tourism stakeholders and community representatives.

Responses highlighted concerns about increased costs for visitors, the island’s competitiveness as a destination and additional administrative burdens on accommodation providers.

The recommendation from officers not to adopt the Visitor Levy at this stage was supported by the Council’s executive this week and backed by full council today.

Council Leader and Economic Development portfolio holder, Councillor Gary Pritchard, said: “Tourism is hugely important to Anglesey, supporting jobs, businesses and communities across the island.

“While we recognise the intention behind the levy, the evidence indicates that now is not the right time to introduce one on Anglesey.

“We consistently champion the SMEs on Anglesey as being the backbone of our economy.

“This is just as true with the tourism sector. However, the tourism sector continues to face a number of challenges and uncertainties, and it is important that we carefully consider any measures that could affect visitor demand, business confidence or the competitiveness of local businesses.

“This decision reflects a balanced consideration of the available evidence and the views shared through the consultation process.”

The Council says it remains committed to supporting a sustainable a visitor economy and will continue to work with businesses, communities and partners to “maximise the benefits of tourism while addressing challenges arising from visitor activity in some areas. “

It will also “continue to monitor the implementation of visitor levies elsewhere in Wales, alongside any future changes in legislation, policy or economic conditions that may affect the tourism sector.”

Leisure, Tourism, Maritime and Property portfolio holder, Councillor Alun Roberts, said: “The tourism sector is navigating a challenging economic environment, and it is important that any changes are considered carefully and in the context of the evidence available.

“The Economic Impact Assessment and consultation responses both highlighted issues that required careful consideration, and those findings have helped inform today’s decision. I would like to thank everyone who took part in the consultation and shared their views.

“Anglesey remains one of Wales’ leading visitor destinations. Our focus will continue to be on working with the sector and our partners to support sustainable tourism growth, strengthen local communities and ensure that the island remains an attractive and competitive destination for visitors.”

Elected members also backed a recommendation that the Council’s Chief Executive, Dylan J. Williams, in consultation with the Leader, should write to Welsh Government calling for a review of current legislation to address the issues raised in the recent levy consultation process.

The Professional Association of Self-Caterers (PASC UK) supports the self-catering, short-term lets and holiday lets sector in England and Wales.

PASC UK Cymru’s Nicky Williamson hailed the decision as a “welcome victory for common sense and for listening to the evidence”.

“Tourism businesses across Wales have been clear about the pressures they are already facing, and the response to these consultations shows the strength of concern about adding another cost to Welsh holidays.

“This is simply the wrong time to introduce another cost for either businesses or visitors. We welcome councils listening to the evidence and urge others to do the same before taking decisions that could have long-term consequences for Wales’ visitor economy.”

PASC UK Cymru says it will “continue to work with councils and policymakers across Wales to ensure the experiences of self-catering businesses and the wider visitor economy are properly considered in any future decisions on the Visitor Levy”.