Anglesey, a Welsh tourist destination where approximately one in five jobs depend on tourism, has scrapped its proposed visitor levy following overwhelming opposition from both businesses and visitors. The decision comes as Andy Burnham announces plans to give English regional mayors unlimited power to impose similar overnight visitor levies on hotel stays and holiday accommodation, raising concerns that such taxes could harm the tourism sector during a cost-of-living crisis.

More than 83 per cent of Anglesey businesses and 84 per cent of visitors opposed the planned £1.30 per night levy for hotels and 75p for shared accommodation. Consultation results showed that over 60 per cent of holidaymakers would reduce their stay if the tax was implemented, whilst two-thirds would consider booking a different destination. Tourism generates £360 million annually for Anglesey's economy of just 68,000 people. The TaxPayers' Alliance analysis suggested the levy could result in 45,000 fewer annual tourists and £14 million in lost spending, whilst business groups warned that the English version – set at around 5 per cent of accommodation charges with no cap – could cost holidaymakers an estimated £1.6 billion by the end of the decade and put tens of thousands of jobs at risk.