Councillors on Anglesey look set to reject bringing in a tourist tax for the island, following opposition to the proposals.
It comes after Cyngor Gwynedd delayed its decision on imposing the tax, after a public consultation prompted thousands of responses from visitors, residents and businesses.
It was estimated the tax could raise upwards of £1.2 to £1.5m per year for Anglesey, excluding VAT and after Welsh government administration costs. But visitors and those working in the tourism sector remain against it.
Anglesey council’s executive agreed to the recommendation of not imposing the Visitor Levy during a meeting on Tuesday. A final decision will be made by the council on Thursday.
A lower rate of 75p per night was proposed for those staying in shared accommodation, external such as hostel dormitories, and camping in tents, while a higher rate of £1.30 was proposed for hotel stays.
A public consultation has shown “strong opposition” to the idea among tourism workers, business owners and managers, as well as visitors to the island, a report says.
Residents were “more divided” but opposition still slightly exceeded support at more than 58%, it added.
The local authority’s executive gave its support to a recommendation that the council does not adopt the levy, and said: “having considered the current uncertainties facing the tourism sector and outcome of the public consultation and impact assessments.”
They supported a recommendation to “monitor, review and consider evidence of the impact of the visitor levy in other local authorities in Wales” which have chosen to adopt the levy.
Cardiff could become the first place in Wales to introduce the tax on paid overnight stays, through a fee of £1.30 per person per night for most types of accommodation and 75p a night for campsites and shared rooms.
It is estimated that the introduction of the visitor levy could raise £3.5m a year.
The report noted “strong” opposition to the adoption of the visitor levy with 1,482 (70.8%) of all respondents opposed or tending to oppose to its introduction, while 525 (25.1%) supported or tended to support it.
A total of 2,098 responses had been received to the online consultation, and was supplemented by feedback provided in face-to-face sessions.
Opposition had centred on a “perceived risk” to small and seasonal businesses, the “high percentage” of self-catering
Concerns included “a lack” of clear data, administrative complexity, taxing children, impact on lower-income families, higher costs for visitors, and competition with areas where there was no Visitor Levy.
The report also noted the “challenges facing Anglesey from the pressures of tourism”, and that there was “clear support for the need for additional revenue to support destination management and the alleviation of the impacts of over-tourism on sites”.
Those in support felt that visitors “contributed to local pressures” so “should make a modest contribution” to maintain public spaces, visitor infrastructure, cultural and heritage assets, environmental protection and local services”
It was also felt the tax could result in local improvements benefiting residents and visitors, the report added.
Modelling suggested “the levy could lead to a very small reduction in visitor demand”, although this would be “partly offset” by local investment funded by it, the report said.
Income raised could also provide “a stable source of funding for projects and services supporting residents, visitors, businesses, and local communities”.
Councillor Alun Roberts said “there was a clear objection” to the levy’s introduction.
He believes there are “weaknesses in the legislation” and has called for the Welsh government to revisit them.
Council leader Gary Pritchard agreed, adding that legislation introduced by the former Labour-led Welsh government had not allowed them to “ensure” that the levy would not affect the tourism industry.
Councillor Sonia Williams said the matter had been discussed by the partnership and regeneration scrutiny committee on September 15.
She said a need for the levy was “recognised” by the committee, which had “drawn attention to its weaknesses,” and “raised concerns over fairness and risks faced by businesses”.
The committee emphasised “feeding back” to the new Plaid Cymru-led Welsh government regarding the consultation and how the legislation “could be improved to better reflect the needs of Anglesey, considering it’s a rural area”, she said.
The Welsh government has been asked to comment.
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