Cardiff tourism tax could help host events - leader

Taxing overnight stays in Cardiff could help cover the cost of hosting big concerts and sports matches, the leader of the city council has said.

Huw Thomas said hotels in the capital thought a tax was "inevitable".

The council has not yet decided whether it will introduce the visitor levy proposed by the Welsh government.

Senedd members taking evidence on the proposals also heard from businesses who called it a "significant burden" and "grossly unfair".

Guests would pay an extra £1.25 per night at hotels, B&Bs and self-catering accommodation or 75p for hostels and campsites.

Councils will decide whether to introduce the charges if the Visitor Accommodation Bill is passed by the Senedd.

The charge could start in 2027 and would also be applied to stays by children.

The Welsh government says the proceeds will help the local tourism industry, including by being spent on public toilets, car parks and cleaning beaches.

Thomas said hotels in Cardiff "almost saw the levy as one that was going to be inevitable, so they are preparing to respond to that".

Hosting major events, mainly at the Principality Stadium, often carried a cost for the council, Thomas said.

They included the "indirect" costs of managing traffic and cleaning up.

"There's a higher profile for the city, yes. Our businesses benefit, obviously. But there is no return to the council. It's just a cost," he said.

"Through introducing a levy such as this it gives the council the ability to respond to the demand that comes from tourism, from hosting these big events, and in turn lets us invest more in winning more of these big events.

"In the end businesses, the city, benefit more because we have the revenue to invest further.

"And it's a fairer reflection of the costs associated with tourism, especially major events tourism."

Thomas said the tax, based on the number of visitors in 2019, would raise £4m for the council.

He was giving evidence to the Senedd's Finance Committee on behalf of the Welsh Local Government Association (WLGA).

The WLGA backed the proposals, but said charging the levy for under-16s was "unreasonable", warning it could have a "major impact" on school trips and overnight stays organised by the Urdd.

Other groups shared the concern, including the Youth Hostel Association which warned that young people from low-income families would be badly affected.

Accommodation providers said the levy follows other cost hikes, including a requirement to let holiday homes for at least 182 days a year before owners get a tax cut.

Carl Thomson, of Airbnb, said: "The concern that we have is that these changes are being brought in quite close proximity to one another with no time really being taken to assess and understand the impact of each of them."

The tax "on its own is unlikely to make Wales uncompetitive", he said, but added the government "need to be cautious about how much more difficult and expensive all of this makes it to operate as an accommodation provider in Wales".

Welsh government Finance Secretary Mark Drakeford said the visitor levy plans amounted to a "small contribution that could make a big difference" to the "long-term sustainability" of tourism in Wales.

"We believe it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience," he said.

"Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.

"Money raised through a levy would be retained by local authorities and re-invested back into their local areas to support local, sustainable tourism."