Yahoo News Tourists may have to start paying 'Cornish tax' to visit the county
Malcolm Bell, the Chief Executive of Visit Cornwall, has voiced his support for a 'Cornish tax' on tourists visiting the region. However, he believes that other parts of the South West which are also popular with tourists should also implement such a tax.
Bell, who is a native of Cornwall with family roots dating back to the 1700s, can 'certainly envision' the introduction of a tourist tax in the future. 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."
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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."
The decision needs careful consideration, involving businesses and other partners, according to Malcolm. 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.
Malcolm has highlighted that the UK is already one of the highest-taxed visitor economies in Europe, second only to France. He pointed out the impracticality of a Cornwall-specific tourist tax, stating: "There is no point in Devon not having one and us having one."
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He also mentioned that a significant portion of visitor spending already goes into taxes: "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 percent, whereas here we pay 20 per cent," Malcolm added, emphasising the disparity.
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."
Acknowledging the current economic pressures, he noted: "Given the national finances, we see the need to pay more into defense, the NHS, social services, we have to be realistic."
Cornwall's popularity as a holiday destination is evident from the staggering number of visitors it receives, with a committee report indicating around four million holiday visits and approximately 12 million day visitors annually. This influx, Malcolm suggests, indicates a desire among tourists for well-maintained local environments, which could benefit from a tourist tax aimed at protecting the region's natural beauty and wildlife.
Furthermore, Malcolm expressed his wish for the potential tax revenue to be used for environmental conservation and community support, concluding: "And he added he would like to see the levy look after the environment and consider the communities. 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."
Malcolm emphasises the importance of transparency regarding how the tax money is spent, believing that holidaymakers would be more willing to pay if they know their contributions are directly benefiting Cornwall's communities and environment. He remarked: "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."
Malcolm also raises the question of whether a significant sum raised by the levy could result in the Government reducing its financial support to the county, as it would be generating its own revenue. 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: "A blunt tourism tax worries me.
"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?" He suggested that the funds could end up in a "big black hole for the public sector" and not actually "make it better for the community."
He emphasised the need for a thoughtful approach: "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."
Highlighting the risks of hasty decisions, he added, "It is impetus to say we don't care, implement the tax and then become completely overrun with holidaymakers." He also mentioned that neither Cornwall Council nor the Government seem keen on implementing such a tax, pointing out that the tourist tax introduced in Manchester from April last year isn't suitable for the South West.
Malcolm clarified his stance by saying: "We are looking in the very early stages of what Manchester has done and saying how can it apply to Cornwall businesses." He referred to the recent changes in Manchester, where since April 1, 2023, a tourist tax has been implemented, adding a £1 charge per room per night, with a cap at 21 consecutive days.
Despite the changes in Manchester, Malcolm noted, "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."
