Councillors in Tenby have touted the idea of a ‘Tourism Tax’ being introduced by local authorities to cover the costs of additional demands on services brought about by the large influx of visitors to Pembrokeshire.

The idea was raised at a meeting earlier this month when discussing the proposed closure of the Tourist Information Centre in Tenby.

The Mayor, Clr. Mrs. Sue Lane told her colleagues at a recent meeting of the town council, that fellow councillor Clr. Mrs. Tracey Evans had brought up the subject matter of a possible tourist tax like other EU tourist areas had introduced, with cities such as Oxford, Bath and Edinburgh considering such a move.

The town clerk, Mr. Andrew Davies explained that a number of areas of tax had been considered by the Welsh Government following devolution of some tax raising powers and a tourism tax was something they had mooted.

However, he noted that an informal poll by the Welsh Government indicated that 63 per cent of the sector had been against the idea.

“The UK Government would have to allow the Welsh Government to impose such a tax,” Mr. Davies told councillors.

A response on the matter from the Welsh Government’s Minister for Finance and Trefnydd, Rebecca Evans AC/AM, came before councillors at their meeting on Tuesday night.

“The Welsh Government is continuing to explore the potential for tourism taxation measures and how these might support investment in tourism sector, particularly in terms of raising revenue to support and improve the tourism offer throughout Wales,” she wrote in her correspondence.

“Tourism taxes can take many forms but one of the most common is a tax (or additional tax) on overnight accommodation. Taxes on tourist accommodation are already in place in a number of cities and nations overseas.

“The UK context is continually developing, and a number of cities across the UK are actively considering a tourism tax, including Bath, Birmingham and Liverpool. Last autumn, the Scottish Government committed to examine the arguments for and against a tourism tax, through a national consultation.

“Edinburgh council has demonstrated its support for tourism taxes, and has recently published a summary of findings for a consultation on a draft proposal for an Edinburgh Transient Visitor Levy (TVL), with 67 per cent of respondents agreeing that a TVL should be introduced at £2 (2 per cent) of the cost of accommodation.

“Welsh Treasury officials have been working with the tourism sector and local government to begin to explore opportunities, challenges and the potential impact of a local tourism tax in Wales. We need to consider fully the concerns expressed by the tourism sector on the perceived consequences of a potential tourism tax as well as exploring its merits.

“There is further work needed before I take any decision on the way forward, including assessing the relationship between a potential tourism tax and VAT on tourist accommodation and how a local tourism tax might interface with other local taxes and existing regulatory pressures,” she added.

The Mayor, thanked the finance minister for the information, before going back to discuss the Tourist Information Centre with her colleagues.

“Everything we’ve done is as much as we can do now, and all we can do is wait and see what the outcome is of the consultations, and hopefully the TIC in Tenby will get a stay of execution so to speak,” added Clr. Mrs. Lane.

At the same meeting, correspondence was also received from Tourism Liaison Manager at Pembrokeshire Tourism, Dennis O’Connor, who was keen to arrange a meeting with the town council, with the added suggestion of other organisations in Tenby also being invited along.