Explainer

What do we know about Wales' controversial tourism tax and where else in the world does it exist?

According to the Welsh Government, local councils will have powers to introduce a levy in their areas and the money would then be spent on maintaining the local area. Credit: PA

The Welsh Government have taken a step forward in their controversial plan to introduce a tourism tax in Wales.

The proposals, which could see tourists pay an extra fee for overnight stays, have been met with mixed responses from the public.

Tourist taxes are quite common in the rest of the world. They exist in more than 40 places including in Greece and Amsterdam.

Amsterdam is one of a few European cities with a tourism tax. Credit: PA

What is the proposed Tourism tax?

The levy will be a small charge paid by people staying in commercially-let overnight visitor accommodation.

According to the Welsh Government, local authorities will have powers to introduce a levy in their areas and the money would then be spent on maintaining the local area.

The new proposals came off the back of a public consultation on the tourist tax and was part of a Co-operation agreement with Plaid Cymru. The legislation still needs to be put before the Senedd which will happen in the next two years.

The plans still needs to be put to the Senedd. Credit: PA

  • Reaction

The plans have evoked a largely negative response on social media.

One Twitter user said: “Nothing says welcome to Wales more than Labour announcing they will be pressing ahead with their toxic tourism tax as families gear up for the Easter holidays.”

Another user said: "The Welsh Government should reconsider their position on this issue of a Tourism Tax and work with the industry to find more beneficial and effective ways to improve the tourism sector in Wales."

However, according to the public consultation commissioned by the Welsh Government, those surveyed supported the idea of a visitor levy.

The Welsh Government said: "The consumer research found that most Welsh residents surveyed agreed that tourists should contribute towards the costs of maintaining and investing in the destinations they stay in, with support stronger among Welsh residents surveyed who live in areas with lots of tourism."

  • Where else is there a tourism tax and what are they?

Tourism taxes are customary across the globe, especially in Europe.

Germany, France, Greece, Italy and Czech Republic are just some of the countries that place some form of tax on tourists.

Tourist taxes exist in destinations like Paris Credit: PA

There are however different types of levies. Occupancy taxes are most similar to the one being proposed by the Welsh Government.

Paying the local occupancy tax in some resort towns in Germany gives access to certain public facilities otherwise shut off to the public. Credit: AP

According to the European Commission, they are typically charged per person, per night, or sometimes charged as a percentage of the room rate.

They make up a small proportion of the overall cost of accommodation and in many cases are payable in person, and cannot be included in the pre-paid price of the accommodation.

This makes them relatively hard to see when booking accommodation as it is often charged at the point of check-in.

Paying the local occupancy tax in some resort towns in Germany gives access to certain public facilities otherwise shut off to the public.

This may include spa facilities, the use of some public transport and entry to local attractions.

However, just over a third of EU countries do not levy any occupancy tax at all – including almost all countries in the Nordic and Baltic regions and some in Western and south-eastern Europe.

The customer is responsible for paying these types of taxes, while the accommodation facility is responsible for collecting these taxes.