'More detail needed' on Tourism Tax in Wales before it becomes law
The Senedd’s Economy, Trade and Rural Affairs Committee has raised significant concerns over the Welsh Government’s Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill
The Senedd’s Economy, Trade and Rural Affairs Committee has raised significant concerns over the Welsh Government’s Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill.
The committee is worried that the rushed timetable for introducing the Bill has limited the chance for businesses and tourism operators to provide input and for proper scrutiny of the proposals.
The Bill aims to promote tourism while introducing a licensing scheme for visitor accommodation, but unresolved details and the pace of the legislative process have sparked criticism.
In its Stage 1 report, which evaluates whether the general principles of the Bill are sound, the committee has expressed support for the aim of improving tourism standards and ensuring clear rules for all accommodation providers.
However, Andrew RT Davies MS, Chair of the Economy, Trade and Rural Affairs Committee, said the rushed approach risks undermining the sector’s confidence.
“Tourism is vital to Wales’ economy, but legislation of this scale must be done properly"
“The tourist sector in Wales has faced a large amount of legislative and regulatory change this Senedd term.
“It became clear to the committee in our evidence sessions that the sector was struggling with policy and legislative fatigue.
“We heard from businesses that they are suffering from regulation overload, with a host of new rules introduced in recent years.”
“The industry already faces many challenges, so any additional regulation must be well considered and crafted to ensure any additional burden is manageable and proportionate."
The committee believes the seven-week timeframe was “unusually short” for non-emergency legislation of this scale. Concerns were also raised about enforcement roles, training requirements, and how licences would be processed using technology.
The Committee’s report highlights:
- Insufficient time to review the proposals: The seven-week timetable was “unusually short” and should not set a precedent for future non-emergency legislation.
- Implementation uncertainty: Key questions remain about enforcement responsibilities, training requirements, and the use of technology to process licences.
- Concerns from tourism businesses: Many fear additional costs, administrative burdens, and unintended consequences such as reduced accommodation supply.
Andrew RT Davies added:
“This Bill will shape the future of Welsh tourism. It’s essential that the Welsh Government listens to the industry, addresses the gaps we’ve identified, and ensures the scheme is fair, proportionate and workable.”
The Welsh Government says:
“We welcome the Committee’s report and will consider their recommendations ahead of the general principles debate in January.”
Members of the Senedd will now debate the Stage 1 report to decide whether the Bill can progress to Stage 2. At this stage, amendments and detailed changes can be made before it becomes law.