Proposed Visitor Levy

In 2024, British residents took over 7.5 million overnight trips in Wales, and during these trips they spent a total of £2.24 billion. Wales’s tourism sector is thriving, as was clear to see last month during the visit of the Under-Secretary of State for Wales, my hon. Friend the Member for Llanelli (Dame Nia Griffith), to Elan Valley Lakes, which will benefit from an £11.8 million investment from both the UK and Welsh Governments. According to the Welsh Government, if a visitor levy were to be introduced by all Welsh authorities, that could potentially raise up to £33 million.

With the Welsh bottle deposit scheme going down the same disastrous dead end as the Scottish bottle deposit scheme, and now more costs are being added to Welsh tourism, making staycations more expensive, the Government appear to be creating a hostile environment for business. Add in the review of the UK internal market, which is meant to make doing business across this great land of ours easier. Why are the Government loosening the bonds of our great Union?

Wales is the second-best recycling nation in the whole world.

I call the shadow Secretary of State.

Attacking the Welsh hospitality sector with the Welsh Government’s disastrous tourism tax is supposedly a good plan, yet their impact assessment warns of a potential loss of over a quarter of a billion pounds of taxpayers’ money. Meanwhile, last week Labour pulled the plug on funding for the western gateway, a vital scheme focused on boosting the Welsh economy. Can the Secretary of State now explain to taxpayers what the £205 million will actually do for Cardiff airport, and does she regret both Governments’ decisions? Today, the chief executive officer of Bristol airport has openly voiced huge concerns about the Welsh Labour Government’s decision to spend the money on Cardiff airport, with no obvious benefit or transparency—a move costing each Welsh household an additional £300.

Investment in Cardiff airport is a matter for the Welsh Government. I recognise the importance of Cardiff airport to the economy of the South Wales region, with thousands of jobs stemming from the airport and the economic ecosystem supported by it. Airlines such as Tui and Vueling have recently added several new destinations and extra flights from Cardiff airport. In the light of the Welsh Government’s sustained support for Welsh tourism, I am delighted to welcome today’s news that Tui is expanding its services at Cardiff, with more new routes and an increase in flights to places such as Tenerife and Mallorca.

Yesterday, Wales lost a musical icon with the passing of Mike Peters from The Alarm. Mike had an extraordinary relationship with his fans, and he brought thousands of visitors from across the world into the area for his annual event, the Gathering. Mike Peters, his warmth and his music put north Wales on the map for visitors from far and wide. Will my right hon. Friend join me in paying tribute to Mike and to the power of music to bring people together like nothing else?

Order. I am sure that the answer will be about the impact of the levy.

Music tourism is a huge part of the Welsh visitor economy, and I was very sad to hear about Mike Peters’ death. Mike and The Alarm were the sounds of my teenage years when I was growing up in north Wales. He was a proud Welshman, a hugely talented musician and a man of incredible resilience. As well as bringing music tourism to north Wales, he dedicated much of his life to charitable work to support blood cancer patients, and I know he will be missed.