Welsh Labour could do with learning some of the lessons from the Blair years. Tony Blair was a master salesman. He realised his party would never win power across the UK unless they accepted the Thatcherite settlement of low taxation, and it worked. Mr. Blair went on to win three general elections on a premise of retaining the top rate of income tax at 40p in the pound.
"They will always win power"
But Wales is different. The Additional Member System (AMS) used to elect Welsh Assembly members provides Labour an unfair advantage. This is a part of the UK that is strong Labour territory and with a large element of AMS consisting of AMs elected by First-Past-the-Post, the overwhelming majority of elected politicians is likely to be Labour.
Since the creation of the Welsh Assembly in 1999, Welsh Labour has always held power. This is a country they take for granted and they know that even if ideas like a tourism tax are met with universal disapproval, they will always win power. In this political age, no constituency of voters should ever be taken for granted and that is why, despite Labour's unfair electoral advantage in Wales, they should reconsider their proposed tax.
"The idea has not worked abroad"
The idea has not worked abroad and Malaysia has proven why. For the last year, the Malaysian Government has been flirting with the idea of a tourism tax. In 2016, the number of Chinese tourists visiting the nation dropped. The Borneo Post contacted the Meritz Hotel and Bintang Megamall general manager, John Teo, who said Malaysia was not ready for a tourism tax.
The occupancy rate of four-star and five-star hotels was less than 50 per cent in Sarawak as a result of the proposed tax. Instead, many Chinese tourists flocked to Thailand, Bali and Indonesia, where they are not taxed.
In America, one person wrote a blog in 2016 about how confusing the tourism tax is over there. They said it was complicated because you had to pay a half payment 60 days in advance and a non-refundable final payment 30 days in advance.
From 2006, cities in Italy were allowed to charge tourists an extra tax. This country is one of the most expensive places to visit in Europe as it is and with its economy stagnating, Dino Triantafillou, the managing director of Italian Holidays, warned at the time this would send out the wrong message to British tourists. Cities are allowed to charge an extra five euros per person per day.
It is time for Welsh Labour to remember taxation never increases prosperity.
