Issue - meetings

To consider the impact of the visitor levy on Gwynedd.

DECISION

1.     To accept the report and note the observations.

2.     Recommend that the Cabinet Member for Economy and Community:

·       Ensures that full consideration is given to all the complexities involved with the introduction of this new levy.

·       If the Council decides to introduce a Visitor Levy:

Ø  There is a specific commitment on how the money raised would be spent, giving priority to areas relating to tourism and the community.

Ø  Thorough consultation takes place across the county and with relevant partners to identify community priorities.

Ø  There should be transparency with those who pay the levy regarding how the money will be spent.

Ø  That communication about exceptions is effective and sensitive as necessary.

The Cabinet Member for Economy and Community presented the report noting that tourism and the visitor economy was a very important industry in Gwynedd. It was explained, for context, that several models and presumptions were used to measure the visitor economy, but that ensuring reliable data at the Gwynedd level had been extremely challenging as data did not exist in the way they would have desired.

It was noted that the frequently used STEAM model, the Scarborough Tourism Economic Activity Monitor, highlighted the following recent statistics for Gwynedd: economic impact of £1.78 billion; 7.75 million visitors; 24.9 million visit days; total employment of 17,600; nearly 4 million overnight visitors; and nearly 20-million-day stays. It was emphasised that this was a very significant contribution to the economy, but it was also recognised that visitors create challenges in some parts of the county, resulting in additional pressures on Council services, the environment, language and culture, and communities.

It was explained that this was the reason for adopting the 2035 Gwynedd and Eryri Sustainable Visitor Economy Plan, to ensure that the visitor economy was sustainable in the area. It was noted that data from the International Passenger Survey and the Great Britain Tourism Survey, which were based on a smaller sample of people than STEAM, showed a much lower value to the visitor sector than that shown by STEAM.

It was noted that the Council had been considering the possibility of introducing a levy for several years, with research on the benefits of tourism completed in 2018 highlighting the levy as a source that could generate significant income for reinvestment in the visitor economy. It was noted that the Cabinet had in the past expressed support for introducing legislation to establish a visitor levy in Wales. It was clearly emphasised, however, that no decision had been made to date regarding the introduction of a levy in Gwynedd, and that the discussion before them only represented the first step in the process.

It was noted that the Council was working closely with Conwy and Anglesey on the research into the impact assessments and in considering the introduction of a levy. It was explained that the economic impact assessment highlighted that the impact on jobs could, in the worst-case scenario, mean the loss of 50 jobs, or, in the best-case scenario, the creation of 21 jobs. It was further noted that the introduction of a levy could generate between £2.4 million and £2.8 million of annual revenue for Gwynedd. It was elaborated that if STEAM data was used instead, the figures would be around four times higher, with a greater impact on jobs and the potential to raise up to £12 million through the levy. It was expressed that the amount raised was likely to be higher than the conservative figure of £2.5 million noted.

It was explained that if there was support from the Full Council to proceed with a consultation, the procedure set out in the Act would be clear, and that the  ...  view the full minutes text for item 6