Londoners may soon have to pay 'tax' to visit Cornwall and Devon

Malcolm Bell, Chief Executive of Visit Cornwall, has voiced his support for a 'Cornish tax' on tourists, but insists that Devon should also implement the same.

Bell, who can 'certainly envision' a tourist tax in the future, believes it 'could work', but argues that Cornwall shouldn't be the only one to introduce such a measure - neighbouring holiday hotspot Devon should follow suit.

He emphasised that any decision regarding the tax should not be 'rushed', to ensure the funds are properly invested and the tourism industry doesn't suffer as a result.

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Born in Cornwall with family roots dating back to the 1700s, Malcolm warned: "We have observed how fast decisions are often very poor decisions."

He added: "It is a time to have the debate, not rush into action, engage with people and look at the art of the possible.

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

The decision, he said, needs careful consideration and should involve businesses and other partners. He revealed they are already in talks 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."

Malcolm has pointed out that the UK is already the second highest tax visitor economy in Europe, and if a tourist tax were to be introduced, it shouldn't be exclusive to Cornwall.

He elaborated: "There is no point in Devon not having one and us having one.

"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: in France you pay 5.5 per cent, whereas here we pay 20 per cent.

"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.

"Given the national finances, we see the need to pay more into defence, the NHS, social services, we have to be realistic."

The report from a Cornwall committee has highlighted the immense pressure tourism puts on both the community and the environment, with around four million holiday visits and approximately 12 million day visitors each year contributing significantly to the local economy.

Malcolm believes these numbers show tourists' desire for well-maintained local surroundings and suggests that environmental services aimed at protecting the area and its wildlife could benefit from such a tax.

Furthermore, he expressed his wish for the proposed levy to support environmental conservation and take into account the needs of local communities.

He stated: "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."

He stressed the importance of transparency, if the levy were to be implemented: how exactly the new tax money would be used and where it would be directed.

Furthermore, he expressed his belief that holidaymakers would be more inclined to pay the tax upfront if they were assured that this money was being directly reinvested into Cornwall, its communities, and environment.

Asserting that a large proportion of Cornwall's business is repeat customers, he said: "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 also touched on concerns about whether, if the levy raised substantial funds, it would result in decreased government support for the county, as Cornwall would then be 'raising its own taxes'.

The local business owner, who has spent over 45 years in Cornwall and 20 years in Plymouth, expressed his concerns about the potential impact of a tourism tax. He remarked: "A blunt tourism tax worries me."

He further commented, "If this tourism tax raised a load of money, the Government must give us less - I hate to be a cynic, but you have to think it through carefully.!

Questioning the efficiency of such a tax, he asked, "How much of it is going to go on administration?"

Malcolm Bell, voicing his scepticism, suggested that the funds might just end up in a "big black hole for the public sector" without benefiting the community.

He stressed the importance of discussion, saying, "We need to debate about how we get the balance right in tourism and what fiscal or financial system it might need to be considered."

He warned against hasty decisions, stating: "It is impetus to say we don't care, implement the tax and then become completely overrun with holidaymakers."

Despite the discussions, Malcolm believes that neither Cornwall Council nor the Government are seriously considering the tax, pointing out that the tourist tax implemented in Manchester since April last year isn't suitable for the South West.

Explaining his stance, Malcolm said: "We are looking in the very early stages of what Manchester has done and saying how can it apply to Cornwall businesses."

Since April 1, 2023, Manchester has seen the introduction of a tourist tax, which involves a £1 charge added to the cost of a room per night, capped at 21 successive days.

However, Malcolm clarified, "Manchester have introduced a charge per night, but it is a business improvement district legislation.

"We have hotels, catering, holiday parks - whereas they have hotels - so their model doesn't work here.

"Perhaps it could work down here but a huge consideration should be can it give our community, its products and our environment?

"Let's have some positive interaction and dialogue around it.

"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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