If Wales’ proposed tourism tax comes to fruition, the tax is being considered in a public consultation in autumn 2022, it may cause travelers to boycott Welsh holidays. This has the potential to disrupt the overall post-pandemic recovery of the UK’s travel industry, found GlobalData, a leading data and analytics company.

Craig Bradley, Travel & Tourism Analyst at GlobalData, comments: “The proposal for a tourism tax seems a little of out sync with what’s going on in the UK travel industry, particularly in the staycation market, given the current economic situation and ongoing issues with the pandemic. The tourism industry is showing positive signs of recovery and the local businesses in Wales have worked hard to attract tourists throughout 2021.”

According to a GlobalData Q3 2021 Global Consumer Survey, 48% of UK respondents said affordability was the leading influencing factor for booking holidays. This sentiment is likely to grow in 2022 due to the increased living costs and the current energy crisis gripping households across Britain. A recent GlobalData poll* from January 2022 revealed that 43.2% of UK respondents said they would consider taking a domestic trip this year. However, the tourist tax levy in Wales could now force tourists to travel elsewhere due to increased costs.

Bradley continues: “If the tax levy does go ahead, initial projections for Welsh domestic tourism figures could fall. GlobalData projects that domestic trips to Wales were expected to reach 12.6 million this year, exceeding pre-pandemic levels.”

If the proposed tax is put in place, some of the most popular travel months would see an impact. Besides the obvious summer period, October and November are popular months for domestic trips. In 2019, November was the third most popular month for domestic travel in the UK, followed by October in sixth position. This is motivated by the lower cost of travel which has proven to be popular with many British travelers. Unfortunately, families with children are most likely to be affected, as the tourist tax is often applied on a per-guest basis.

Bradley concludes: “Introducing a tourist tax seems to be counter-productive, especially with growing concerns surrounding increased living costs and the need for UK tourism to recover as quickly as possible.”

*GlobalData Poll, Closed January 2022 – 347 UK respondents