The Welsh Government is introducing legislation to give councils the power to apply a visitor levy to accommodation bills
Tourists might soon find themselves paying a bit extra for their stays in Wales, as the Welsh Government is set to empower local councils with the ability to charge a visitor levy. The proposed legislation would see travellers paying 75p per person per night at hostels or campsites, and £1.25 for other types of accommodation like hotels, Airbnbs, and self-catering properties.
This tourism tax could bring in an estimated £33 million annually if adopted across all Welsh authorities. The funds raised are intended to enhance local tourism infrastructure and activities.
Additionally, the Visitor Accommodation Bill will introduce a registration scheme for accommodation providers. While it awaits the Senedd’s green light, councils could implement the levy by 2027.
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Tourism taxes are already in place in various global destinations such as Manchester, Greece, Germany, Netherlands, Spain, Portugal, and California. Finance Secretary Mark Drakeford commented on the bill: “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.” The proposed levy would see funds retained by local authorities for reinvestment in sustainable tourism.
Money raised through a levy would be retained by local authorities and reinvested back into their local areas to support local, sustainable tourism. The suggested contribution is described as modest but impactful.
A comprehensive registration scheme for accommodation providers is on track for a 2026 launch, crucial for levy administration and sector insights, aiding in future policy development at various levels. Councillor Andrew Morgan from the Welsh Local Government Association said: “This Bill will give councils the option to introduce a visitor levy on overnight stays.
“It’s a way to raise extra funds to support local services and improve amenities that benefit both visitors and the community. Each council will decide how to apply the levy based on what’s best for their area, recognising that it may be suitable in some parts of Wales but not in others.”
“Councils will carefully consider local circumstances and ensure residents are consulted before any decisions are made.”
Peter Fox, the Welsh Conservative finance spokesman, has voiced his concerns over the proposed tourism tax, warning that it could lead to job losses and deter visitors. “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.”
William McNamara, CEO of Bluestone National Park Resort, also expressed reservations. He said: “While we have slightly more clarity on the proposed visitor levy, including the £1.25 overnight charge, there remain concerns about its potential impact on the tourism sector.
“Wales risks becoming less attractive to visitors, especially families, who may view this as an additional cost in an already competitive UK market, particularly as this levy is not being introduced in England. The flexibility for councils to raise charges in the future also adds an element of uncertainty that must be carefully managed.”
“Tourism is the backbone of communities like Pembrokeshire, and reinvestment in rural areas can undoubtedly bring benefits. However, the success of this levy will depend on clear accountability for how funds are used and a commitment to ensuring Wales remains a welcoming and competitive destination for all.”
