Anglesey council has officially abandoned a planned £1.30 nightly visitor levy following massive local opposition. The move comes after a consultation revealed that 83% of local businesses and 84% of travelers were against the tax.
A massive rejection: 83% of businesses and 84% of visitors say no
The Anglesey council decision to scrap the tax follows an overwhelming negative response from the community. As reported by the source, the proposed levy would have charged more than one million annual visitors £1.30 per night for hotel stays and 75p for shared accommodation like campsites.
The impact on consumer behavior appears to have been a primary driver for the council's reversal. More than 60% of holidaymakers polled indicated they would shorten their stays if the tax were implemented, while two-thirds of respondents suggested they would look for alternative destinations entirely. Residents were also largely opposed, with 58% of islanders voting against the measure.
Protecting Anglesey's £360 million tourism engine
Tourism serves as a vital economic pillar for Anglesey,generating approximately £360 million annually and supporting one in five local jobs. The council's executive backed the decision to scrap the levy due to fears regarding the potential economic fallout for the seasonal trade.
The TaxPayers' Alliance warned that the implementation of such a tax could have resulted in 45,000 fewer tourists visiting the island, leading to an estimated £14 million loss in local spending. While supporters of the tax argued it would provide essential funding for transport and local services, the council ultimately prioritized protecting the existing economic stability of the island's 68 ,000 residents.
The shadow of Andy Burnham’s English mayoral tax plans
Andy Burnham has recently approved new powers for English regional mayors to implement unlimited overnight visitor levies on accommodations like hotels and B&Bs . This move comes at a time of significant tension between local governments and the hospitality sector.
Business groups have described the English approach as a major threat to employment, estimating that holidaymakers could face costs totaling £1.6 billion by the end of the decade. According to the report, while the Anglesey tax was a flat fee, the English model is expected to be a percentage of accommodation charges, with Labour-run areas likely setting the rate at 5%.
Resistance grows in Cardiff and Gwynedd
The rejection in Anglesey represents a significant setback for visitor levy ambitions elsewhere in Wales. The Cardiff government is currently planning to introduce its own visitor levy of up to £1.30 per person per night in 2025.
Other regions are also facing mounting pressure, with Gwynedd council—which oversees popular areas like Snowdonia—encountering strong local opposition to similar schemes. Allen Simpson, CEO of UK Hospitality, stated that the negative response in Anglesey should come as no surprise given how unpopular these taxes are during a cost-of-living crisis.
Will the Plaid Cymru administration ignore the Anglesey warning?
Several questions remain regarding how political leaders will navigate the growing resistance to tourism taxation. It is currently unclear whether the Plaid Cymru-led Welsh government will maintain its support for the visitor levy scheme despite the clear signal sent by Anglesey.
Furthermore, while Benjamin Elks of the TaxPayers' Alliance has urged ministers to stop "inventing new taxes," it remains to be seen if English regional mayors will heed the Anglesey precedent or proceed with their own percentage-based levies despite the warnings of economic disruption.
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