The hospitality industry strongly opposes any attempts to introduce a so-called ‘tourist tax’ in the Tenby area and has urged the town council to back a campaign to help reduce costs and to drop VAT on accommodation to sustain and grow local businesses.

HospitalityCymru executive director David Chapman said: “The UK’s hospitality sector is already the most highly taxed in Europe. Our members are battling against a storm of continually-increasing costs and an additional tax may be too much for some businesses.

“It is true that tourist taxes have been introduced in some European countries, but these areas have much lower rates of VAT for hospitality. In the UK, the rate stands at 20 per cent, significantly higher than across most of the continent, and a tourist tax should not even be considered until the rate is reduced.

“Hotels in Tenby already face myriad costs and some have seen their business rates increase by 100 per cent. Another tax on businesses which are valuable employers and social hubs may, ultimately, drive some of them out of business.

“Additionally, there is no guarantee that any money raised by a tourist tax would actually go to supporting Tenby’s hospitality and tourism businesses. If the council wishes to boost the town’s touri then I invite them to discuss potential partnership schemes with us, rather than pushing an additional tax on the town.”