Welsh Government moves forward with controversial ‘Tourism Tax’

Plans to introduce a controversial “tourism tax” in Wales are moving forward, as the Welsh Government unveils details of its Visitor Accommodation Bill.

The proposed legislation would give local authorities the power to impose a small charge on overnight stays in visitor accommodation.

It is scheduled to be introduced to the Senedd on 26 November, according to a statement by Finance Secretary Mark Drakeford and Economy Secretary Rebecca Evans.

Known as the visitor levy, the charge is intended to help fund local services and sustain the tourism sector in the long term.

Rebecca Evans MS, stated that the levy would be implemented only at the discretion of individual councils.

“Each local authority will be able to decide whether to introduce a visitor levy in its area, based on local circumstances,” she explained.

In addition to the levy, the Bill proposes a national register of all visitor accommodation providers in Wales.

The register aims to ensure fair competition and maintain high standards across the sector.

It is seen as a stepping stone towards a more comprehensive statutory licensing scheme for visitor accommodation, which is expected to follow in a future Bill.

The Welsh Government argues that the measures, developed through extensive consultations, will address the growing strain on local resources caused by tourism, while ensuring high standards for visitors.

Officials highlight the role of tourism in Wales’ economy and say the levy will provide essential funding for communities.

However, the proposals have drawn sharp criticism from opposition leaders and some representatives of the tourism industry.

Andrew RT Davies MS, Leader of the Welsh Conservatives, has described the visitor levy as a burden on businesses and a threat to jobs.

“A tourism tax will risk jobs at a time when businesses are being clobbered by Labour,” he said. “It will impose red tape and work against its own aims by encouraging visitors to use more council-maintained attractions and services.”

Critics also worry the additional costs could discourage visitors, particularly during an economic downturn when the tourism industry is already under pressure.

The Welsh Government says it will continue consulting with tourism stakeholders, accommodation providers, and local authorities as the proposals progress.

A second Bill, focusing on the statutory licensing scheme, is expected to follow at a later date.