Friday, May 27, 2022
Proposed Welsh tourism tax could impact UK domestic travel recovery
Photo: theuktravelguide.co.uk

With Wales proposing the introduction of a tourism tax in autumn 2022, possibly causing 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. However, those figures could be under threat.”

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Proposed Welsh tourism tax could impact UK domestic travel recovery
Photo: theuktravelguide.co.uk

With Wales proposing the introduction of a tourism tax in autumn 2022, possibly causing 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. However, those figures could be under threat.”