Report outlines opportunities in introducing visitor levy for Wales
Bangor University has published a report detailing the impact of visitor levy around the world today, Monday 25 November 2024. On the same day the Welsh Government introduces a Bill to the Senedd that gives the powers to Local Authorities to introduce a visitor levy.
The report, funded by Welsh Government analyses the visitor levy in seven different international destinations. It draws clear recommendations for how Local Authorities should implement the new tax in Wales. These focus on how the revenues from the tax should be disbursed, and how the impact of that spending should be evaluated.
“Tourism is an important part of the Welsh economy, but at present it is characterised by low wage, seasonal jobs and doesn’t always bring great benefits to communities” says Dr Rhys ap Gwilym, Senior Lecturer in Economics at Bangor Business School. Rhys conducted the research with his colleague Dr Linda Osti, Senior Lecturer in Tourism Management, Bangor University.
“The Visitor Levy has the potential to transform the sector in Wales, so long as councils follow the international best practice that we have presented in this report,” according to Rhys.
Linda Osti pointed to Destination Management Organizations (DMOs) in South Tyrol, Italy, which were established to facilitate its visitor levy. “DMOs at the local level use levy revenues in the best interests of both the tourism sector and the wellbeing of local communities,” Linda explained. “We’ve seen examples of those funds supporting affordable housing, public transport, and even sponsoring local radio stations. Such models could greatly benefit Wales if implemented thoughtfully.”
The study analyses visitor levy in seven different international destinations and draws clear recommendations for how Local Authorities should implement the new tax here in Wales. These focus on how the revenues from the tax should be disbursed, and how the impact of that spending should be evaluated.
Linda commented that “funded projects should align with clear objectives, whether aimed at enhancing the sustainability of the tourism industry or supporting host communities' cultural, social, or environmental well-being.” Rhys ap Gwilym concurred, and called for public accessibility to details of funded activities to build trust and ensure accountability.
