* Jim Jones, the chief executive of North Wales Tourism.
A tourism leader in North Wales has slammed Airbnb for its “cynical support” for a Welsh Government plan to tax the industry.
Jim Jones, the chief
executive of North Wales Tourism, described the plan to impose the
controversial Tourism Tax as a “flawed idea”.
Airbnb have said they
back the idea and that they want to work with the Welsh Government in a
bid to tackle so-called “over tourism”.
But Mr Jones was not
impressed saying that any additional levy would be counterproductive and deter
visitors from coming to North Wales and play to the “anti-visitor mantra”.
With Covid restrictions
being eased, the last thing that was needed was a tax that would encourage
“staycationers” to go to other parts of the UK instead.
Mr Jones said: “North
Wales is increasingly recognised as a world class visitor destination with
international and UK wide appeal, we have the opportunity to significantly grow
the value of tourism to the local economy and region as a whole.
“Instead of the Welsh
Government prioritising the recovery and optimistically talking growth, such as
a 1% increase in tourism spend which would add an extra £20m to the economy, we
find ourselves back to 2017 when the then Finance Minister Mark Drakeford was
trying to push through four new taxes, one being tourism tax.
“We told him then as we tell him now, this is not welcomed by the majority of the industry.
“It is
counterproductive and will damage our economic performance, brand and
prospects. It will also increase social exclusion, undermine policies to create
a healthier and more active Wales, limit opportunities for economic growth in
Welsh-speaking heartlands and disproportionately impact those least able to
afford to take a holiday.
“It is extremely
insensitive that the Welsh Government are talking about this and could not have come at a worse time for our industry,
raising the subject knowing full well it will play into the anti-visitor
mantra.
“Welsh
tourism and hospitality businesses pay business rates to Welsh Government,
revenue ALL generated through visitor spend and so already a tax on tourism
spend.
“In my view
the whole tourism tax model is flawed in Wales as local authorities already get
an enhanced grant towards increased visitor numbers.
“Are the
Local Authorities prepared to relinquish a grant from Welsh Government to
undertake a massive logistic challenge of extracting taxes from business, a
number of our businesses who have already said they will not collect any form
of tourism tax.
“Most local
authorities are sitting on huge financial reserves following the pandemic, this
should also be challenged of what any additional revenue will be used for, when
they can’t spend the money they already have.
“I’m also
very disappointed that Airbnb have come out to support a tourism tax, I believe
this is a cynical move by Airbnb who now charge hosts 15% commission.
“They are
not on a level playing field with our serviced accommodation sector, there is a
statutory misalignment - whereby many Airbnb hosts can have no business
insurance nor public liability insurance, have no responsibility to test
electronic equipment and can freely dispose of waste through their local
authority as if domestic tenants.
“Of course,
once they have the same statutory obligations as us, then they can contribute
to the discussion, but as it stands, they are unequal partners in this industry
and their opinion in my view is redundant.
“A majority
of Airbnb owners are not registered for business rates and are unregulated, so
how on earth would they propose to ensure compliance?
“The Welsh
Government should be undertaking an urgent reform, on a system that is
currently unfair, as they tax and punish success in hospitality businesses,
because it’s being based on turnover, much of which is unprofitable.”
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