A bill has been proposed by Welsh lawmakers to introduce a “small” visitor levy that could see visitors to the country paying up to £1.25 per night by 2027.
Finance secretary Mark Drakeford introduced the bill on Monday, 25 November for consideration by the Senedd, the Welsh Parliament, who will scrutinise and vote on the legislation. A final decision may not be made until 2025.
The Visitor Accommodation (Register and Levy) Etc (Wales) Bill proposes that people staying overnight in Wales will pay a small charge, with the money raised being reinvested in local tourism activity and infrastructure.
The legislation will give local communities the power to decide on whether they want to introduce a levy into an area, giving them an opportunity to generate additional revenues.
This will include funding towards cleaning beaches, maintaining parks, footpaths and toilets, raising revenue for public services and investing in sustainable tourism.
The government estimates that if all Welsh local authorities choose to introduce a visitor levy, it could generate up to £33m a year.
The bill currently proposes that the levy would be set up at 75p per person, per night for those staying in hostels and on campsites.
A £1.25 tax would be charged per person, per night to people staying in all other accommodation types.
The levies are to be introduced based on what each authority thinks is best for their community, and the earliest that the taxes may be introduced could be 2027 after consultation processes with local residents have been completed.
Along with the new tourism tax, the legislation would also require the creation of a list of all visitor accommodations in Wales, which will be introduced by 2026 to support the collection and administration of the levy.
Visitor levies have been introduced in other areas of the country, such as Manchester’s City Visitor Charge of £1 per room, per night that was introduced in April 2023.
A tourism tax has also been introduced in popular tourist destinations across the world that have been impacted by large amounts of overtourism that are affecting natural landscapes and the lives of locals.
In April this year, Venice became the first city in the world to charge admission for daytrippers. The €5 (£4.26) charge to enter the historic centre of Venice started a 29-day trial to control visitor numbers on busy days until mid-July.
In September, the Highland Council in Scotland also started a consultation process on introducing a tourist tax for overnight visitors to re-invest in infrastructure.
In Wales’ case, economy secretary Rebecca Evans that the proposal is all “about preparing for the future”.
“Our intention is to bring about a sense of shared responsibility between residents and visitors, to protect, and invest in, our local areas.”
Drakeford said: “This Bill is rooted in the principle of fairness. We know tourism makes an important contribution to the Welsh economy and to Welsh life. We want to ensure its long-term sustainability.
“That’s why we believe it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience. Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.
“Money raised through a levy would be retained by local authorities and re-invested back into their local areas to support local, sustainable tourism. It’s a small contribution that could make a big difference.”
Not all Welsh lawmakers are happy with the bill, however, as they have voiced concern over whether it could discourage the amount of visitors the country receives.
Andrew RT Davies MS, leader of the Welsh Conservatives, said: “We’ve been absolutely clear from the start that this policy is the wrong one for Wales.
“A tourism tax will risk jobs at a time when businesses are being clobbered by Labour, it will impose red tape, and it will work against its own aims by encouraging visitors to use more council-maintained attractions and services.
“Our tourism industry should be nurtured by the Welsh Government, not hamstrung by new taxes.”
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