INTRODUCING a tourism tax in Wales would hit businesses in Ceredigion and Montgomeryshire and threaten jobs in the region, a new report has claimed.

The Welsh Government is considering a new tourism tax as one of a range of possible taxes it could introduce, but the idea has already met with criticism from tourism operators and politicians.

Now an independent report has warned that a tourism tax could be disastrous for the industry across Wales, especially in regions that rely on tourism such as Ceredigion and Powys.

The report, commissioned by the Wales Tourism Alliance and drawn up by Prof Annette Pritchard, warned that the tourist industry in the UK is already taxed more than the vast majority of other countries with the World Economic Forum claiming that the UK is 140th out of 141 countries assessed for price competitiveness.

It says: “The UK tourism industry has one of the world’s highest tax burdens. The imposition of higher taxes has been shown to inhibit growth, employment, revenue and holiday-taking.

“A proposed tourism tax will damage its economic performance, brand and prospects.

“It will also increase social exclusion, undermine policies to create a more healthy and active Wales, limit opportunities for economic growth in Welsh-speaking heartlands and disproportionately impact those least able to afford to take a holiday.”

See this week’s south papers for the full story, available in shops and as a digital edition on Wednesday