Cornwall could follow Wales' lead with a tourism tax on visitors

A travel boss has given cautious support for Cornwall to follow Wales' lead on a tourism tax. Welsh Government has announced the intention for a visitor levy on overnight stays in the country - a move hotly opposed by a vast majority in the sector.

They are currently consulting further on the proposal and the potential impacts - with fears it could deter people from coming to Wales. Under the current timescale a tax could be introduced by 2027 - although it would be down to individual local authorities whether they bring it in.

Supporters say that these taxes are now common across Europe and there is a business led visitor levy in central Manchester and plans to introduce a tourism tax in Edinburgh. But opponents argue that the tourism sector in the UK is already more heavily taxed than nearly all overseas destinations with visitor levies.

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Now Malcolm Bell, the Chief Executive of Visit Cornwall, has spoken about exploring a potential tax in the county, and that he would like Devon to also come onboard. But he has added that there is a lot to consider before introducing any extra tax.

Bell, who is a native of Cornwall with family roots dating back to the 1700s, told Cornwall Live that he can 'certainly envision' the introduction of a tourist tax in the future. He said he thinks it 'could work', but insists that Cornwall shouldn't be the only place to introduce it - neighbouring holiday hotspot Devon should do the same.

He also stressed the importance of not rushing the decision, to ensure that the funds raised are properly invested and the tourism industry doesn't suffer as a result. "We have observed how fast decisions are often very poor decisions," said Malcolm. "It is a time to have the debate, not rush into action, engage with people and look at the art of the possible."

He added: "We must make sure it is not burdened with administrative costs and helps to manage the situation we are facing and improve it."

He revealed that discussions are already underway with the Cornwall community foundation and National landscapes, south west coastal paths. "But even if we end up avoiding the tourism tax, we should look at the rationale about why people are calling for one," he concluded.

Like tourism bosses in Wales, Malcolm has highlighted that the UK is already one of the highest-taxed visitor economies in Europe, second only to France. For example hotels and restaurants in Spain's Balearic Islands - where a tourism tax has been introduced - only pay 10% in VAT, compared to 20% paid by similar businesses in the UK. Across the EU the average VAT on hotel stays is 11%.

He added: "Something to consider is there is already a tourist tax as over 30% of visitors spend goes into tax. We're the second highest tax visitor economy in Europe."

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He argued for a redistribution of funds, saying: "The normal argument would be we need some distribution of the money that already goes to the majesty's treasury to instead go back into local levels."

Malcolm expressed his wish for the potential tax revenue to be used for environmental conservation and community support. He added: "The preference would be if the levy is well developed with the community and businesses - where visitors are comfortable to pay a very small amount to help go back into Cornwall.

"We have 85% repeat business in Cornwall - holidaymakers who regularly return would want the levy to help Cornwall and its residents. If holidaymakers want to contribute, if they think it's going to the right cause, I wouldn't mind." That to me means yes they would be pleased to see that - if they know where it is going. People are cynical and want reassurance that their extra payment is going on something that is appropriate. But if it is just another levy added onto VAT and taxes? That is probably not what people want to see."

He did clarify: "We might conclude the tax is not right or appropriate and the cost of the implementation itself is too much. So I could conceive it, but the levy should be considered across the community, there is a lot to consider."

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