Councillors have voted to launch a fact-finding mission with residents and tourism businesses before deciding whether to introduce the Welsh Government’s proposed tourism levy in Powys.

At a full council meeting on Thursday, October 9, members considered a report setting out five options for how the authority could respond to the levy.

Option Two, which had emerged as a “preferred” option, was: “Minded not to implement the levy, but undertake an engagement exercise with the residents, businesses and tourism stakeholders of Powys to gather evidence and views on this decision.”

This would help the council decide whether to introduce the levy in future.

Cllr Pete Lewington (Conservative – Newtown West) said: “I’m disappointed that there’s no detailed financial assessments of the impacts of the levy with this report - we really do need those.

“We need to consider the impact on employment, as many jobs are reliant on the tourism industry which brings many economic benefits to our county.

“This is a nasty tax on domestic holidays and will hit hard-pressed families.”

He suggested councillors should back Option One, which proposed not introducing the levy at all.

Reform UK councillor Karl Lewis (Llandinam and Dolfor) said the levy risked “jeopardising” millions of pounds of investment and economic gains generated by holiday parks in his ward.

Powys Independents joint-group leader Cllr Beverley Baynham (Presteigne) said: “If we’re minded not to implement the levy, why are we going to spend money having a huge consultation?

“I live very near the border.

“Several tourist park and visitor accommodation owners have contacted me are saying, ‘Please - if we introduce a levy - people are going to go over the other side of the border.’”

She said her group would not support Option Two.

Cabinet member for Legal and Regulatory Services Cllr Richard Church (Liberal Democrat – Welshpool Castle) said: “I find it odd saying not to proceed with anything because we don’t have all the information.

“Part of the reason for seeking to engage on this subject is to gather that evidence and information, either for or against introducing the scheme.”

He suggested that levy funds could be reinvested in tourism infrastructure and promotion.

Plaid Cymru’s Cllr Gary Mitchell (Llanbrynmair) said: “We do need to see better figures and information behind it.

“We do need to consult with visitors that come here as well, not just the business owners locally, as I think they will have very different opinions.”

He added that the levy would cover all of Powys, including Bannau Brycheiniog National Park and a small part of northern Powys that could be incorporated into a new national park in northeast Wales.

“They would not have their own tax raising powers on this; it would be up to us to decide and implement on their behalf,” said Cllr Mitchell.

Councillors voted 29 in favour of Option Two, 19 against, with one abstention.

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill is Wales’ first locally designed tax. Approved by the Senedd in July, it received Royal Assent last month.

The levy charges overnight accommodation at £0.75 per person per night for campsites and hostels (excluding those under 18) and £1.30 per person per night for all other visitor accommodation.

The Welsh Government says the levy could generate up to £33 million a year if introduced by all local authorities, money that could be reinvested in tourism-related infrastructure.