Wales tourism tax details revealed as extra costs of staying overnight confirmed

A family of four visiting Wales will have to pay an extra £3-£5 per night depending on what type of accommodation they use, the Welsh Government has announced. The visitor levy, dubbed a “tourism tax”, could be imposed from 2027.

The new charges will apply to anyone staying in Wales overnight whether in an Airbnb, Vrbo, holiday cottage, B&B or hotel, hostel or campsite. People living in Wales but travelling for leisure or business will also have to pay the levy.

There will be two levels of charge depending on the accommodation. For those staying in hostels and on campsite pitches, it will be 75p per person per night. For all other accommodation types, the charge will be £1.25 per person per night.

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Finance secretary Mark Drakeford said called the visitor levy a “small contribution that could make a big difference”. It will be up to local councils to decide how to spend the revenues but the aim is to enhance facilities that benefit both residents and visitors, such as public toilets and parking. Mr Drakeford said the idea was “ rooted in the principle of fairness”.

Each of Wales’ 22 councils will decide if they want to introduce a tourism levy. Some, like Cyngor Gwynedd, are likely to proceed. But given the state of local authority finances, the prospect of extra revenue will be tempting.

If all Welsh local authorities choose to introduce a visitor levy, it’s estimated that extra revenues of up to £33m-a-year will be generated. As councils will first need to launch local consultations, the earliest the charges could come into force is 2027.

The Welsh tourism sector bitterly opposes visitor levies, fearing they will deter tourists. Welsh Tory MS Peter Fox, shadow minister for finance and local government, , said the policy was “wrong” and will cost jobs.

“It will impose red tape and it will work against its own aims by encouraging visitors to use more council-maintained attractions and services,” he said. “Our tourism industry should be nurtured by the Welsh Government, not hamstrung by new taxes.” Join the North Wales Live WhatsApp community group where you can get the latest stories delivered straight to your phone

But Mr Drakeford said it was only fair that visitors helped pay for local services they use. He said: “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.”

Visitor levies are increasingly common in many parts of the world, often in places affected by over-tourism. As well as Spain, Portugal and Greece, they’be been applied in Germany, Netherlands and California. City levies are also becoming commonplace, with tourist taxes now charged in Manchester, Amsterdam, Paris, Rome, Barcelona and New York. Funds raised are supposed to be used to maintain local infrastructure that visitors use.

A Bill giving local authorities powers to introduce a visitor levy is being introduced today (Monday, November 25) in the Senedd (Welsh Parliament). The Bill will also include plans for a statutory registration scheme for all accommodation providers. Expected to launch in 2026, this is needed to support the collection and administration of a visitor levy.

The register will include details about who is operating in the sector and where they are operating. Ministers hope this will help Cardiff establish a better understanding of the sector and support future policy decisions: at present, there’s no national database of holiday accommodation in Wales. A statutory licensing scheme for all tourism accommodation in Wales is also in the pipeline.

Cllr Andrew Morgan, leader of the Welsh Local Government Association, said the new visitor levy will mark an “important step forward” for Wales’ visitor economy. He added: “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.” Sign up for the North Wales Live newsletter sent twice daily to your inbox

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