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00:00With iconic mountains, historic castles and spectacular coastline, Wales has attractions
00:06that bring in thousands of visitors. Tourism is a key part of the Welsh economy, but what
00:11impact will the new levy have? The 12th century Cymmerabi near Dolgellai is next to Geraint's
00:18Caravan Park, which also has camping pitches and self-catering cottages. While he recognises
00:23that busy tourist areas face extra costs, he also has concerns.
00:27We are taxing the people who are ready to contribute to the local economy by staying
00:34in accommodation. When you look at the figures, £75 for camping or £1.30 in self-catering,
00:40that adds up because as I've realised now it is the VAT on top of it, so we're talking
00:49about a family of five in a holiday accommodation, you're talking nearly £60 extra for a week.
00:54There are mixed views among the caravaners.
00:56It's like everything else. Once they start something, it will rise every year.
01:01If it's going to help and keep the places tidy and provide extra for everybody, then I think,
01:08yeah, go for it.
01:09Individual councils can choose to impose the levy or not. In Cardiff, council leaders like
01:14the idea.
01:15There are costs to putting on major events that the city council currently bears, and
01:19obviously this tourism levy can be used for us to meet some of those costs as long as
01:23it is enhancing Cardiff as a visitor destination. But of course we all benefit from a growing
01:27economy and we want to support the tourism economy here in Cardiff to grow even further.
01:31Welsh Government hopes the levy will raise £33 million a year. An academic who has studied
01:37the issue in other countries says how the money is used is key.
01:41If it is used to improve the service for the tourists, but also for the local people who
01:49live there and create the beauty of the place that creates the attraction, the cultural attraction
01:54of the place, of the destination, then in the long term it's not going to decrease the
02:00number of arrivals in overnight stays.
02:03Some feel urban areas could benefit more than rural counties. An impact assessment found
02:09the levy could reduce visitor numbers. There are concerns about this in Mid Wales.
02:14Well, the Welsh Government's own research has shown that they're looking at a 2-10% reduction
02:19in visitor numbers. Where you've got tourism levy in other cities or destinations, they could
02:25probably afford to lose a few visitors, whereas in Mid Wales we need every visitor that we can
02:29get the knock-on effects of our rural economy could be huge.
02:33After a debate in the Senedd this afternoon, the vote did pass and the new levy will now
02:38become low, with councils able to apply it from 2027.

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