Senedd set to pass tourism tax allowing councils to charge overnight visitors
The Senedd is set to vote today (8 July 2025) on the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill, which will allow local councils to charge a visitor levy, a local tax on overnight stays in hotels, B&Bs, self-catering accommodation, hostels, and campsites.
The levy is designed as a per person, per night charge, set nationally at £1.30 for most accommodation types, with a lower rate for hostels and campsites.
It will apply for stays up to 31 nights, with exemptions for vulnerable groups and specific circumstances such as stays due to health needs or homelessness.
The Welsh Revenue Authority will collect and manage the tax centrally, while local councils will decide if and when to introduce it.
Tourism is a vital part of Wales’ economy, supporting nearly 160,000 jobs and generating billions in spending.
However, it also places pressure on local services and infrastructure such as roads, waste management, public toilets, visitor centres, and parks.
Currently, these costs are funded through general taxation, which does not specifically account for visitor usage.
The visitor levy aims to create a fairer system by asking visitors to contribute proportionately to maintaining the places they visit.
The Welsh Government says the funds will be reinvested into local communities to support sustainable tourism, preserve natural landscapes, and improve visitor facilities.
In 2022, the Welsh Government held a public consultation which attracted over 1,200 responses, primarily from accommodation providers and local authorities.
Many opposed the tax, citing concerns about added costs and administrative burdens, but there was agreement on the need for a fair, simple levy design.
The final policy sets a flat-rate charge applied consistently across Wales, with local discretion on introduction and use of funds.
Visitor levies are common internationally. Cities like Amsterdam, regions such as the Balearic Islands, parts of Canada, and New Zealand use similar taxes to fund tourism infrastructure and conservation.
Within the UK, Scotland passed a visitor levy bill in 2024, and Manchester introduced a City Visitor Charge in 2023, funding local projects without deterring visitors.
The Welsh Conservatives oppose the visitor levy, arguing it will damage an already fragile tourism sector and cost jobs. Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS, said: “Today’s decision sets in motion a hammer blow that will hit an already struggling Welsh tourism sector in 2027. Labour and Plaid’s toxic Tourism Tax, according to the Welsh Government’s own figures, will harm the economy to the tune of tens of millions of pounds and hundreds of jobs every single year. Not only will we vote against it as we have at every stage, but given the opportunity, the Welsh Conservatives will axe the toxic Tourism Tax before it comes into force.”
Critics warn the charge could deter budget travellers and increase costs for local businesses, while supporters highlight the need for additional investment in tourist destinations.
If the bill passes today, the visitor levy could come into force from 2027, with councils able to introduce it after consulting their communities.
The bill also requires visitor accommodation providers to register with Welsh authorities, creating a database to aid levy administration and support future policy development.
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