The Senedd has voted to give councils across Wales the choice to introduce a visitor levy on overnight stays.
Local authorities can choose whether to introduce the levy in their area after consulting with their communities. Registration will start in autumn 2026 and the earliest a visitor levy can be introduced anywhere in Wales is April 2027.
The Welsh Government said the move would “raise and reinvest vital funding into local tourism”. All funds must be retained and reinvested in the local area to support tourism infrastructure and services.
The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill establishes the first local tax designed and legislated for in Wales.
Finance Secretary Mark Drakeford said:
“Visitor levies are used successfully all over the world. They ensure the pressures and opportunities tourism bring are balanced fairly between visitors and residents. We want the same for Wales.
“The levy is a small contribution that will make a big difference to our communities, helping to maintain and enhance the very attractions and services that make Wales such a wonderful place to visit and live.
“By voting to back this measure, Wales is joining many other worldwide destinations which already benefit from similar levies.”
The levy is set at 75p per person per night for adults staying in hostels and campsites and at £1.30 per person per night for all visitors staying in other types of accommodation. Under 18s are exempt from paying the levy when staying in hostels or campsites.
Jim Jones, Chief Executive of North Wales Tourism, said:
“We are deeply disappointed by the Welsh Government’s decision to proceed with the proposed tourism tax, despite years of dedicated lobbying efforts against it. This decision once again overlooks the voices of those already facing significant pressures, particularly within the tourism and hospitality sector. The Welsh Government has failed to engage with the industry, yet expects those businesses who they have ignored and many of whom are under so much pressure right now to implement and collect this tax.”
Jim said he was concerned that the visitor levy will compound challenges for accommodation providers who have already been impacted by changes in rules in 2023 which mean that furnished holiday lets must be commercially let for a minimum of 182 days a year in order to qualify for business rates.
“Coupled with the damaging 182 rollout, this tax further underscores a lack of understanding from the Welsh Government on how to foster economic growth, especially in the vital tourism and hospitality sector,” he said. “These policies risk undermining businesses and the communities they serve, demonstrating a disconnect from the realities faced by the industry.”
Rowland Rees-Evans, Chair of the Wales Tourism Alliance, said:
“The tourism industry in Wales is in a fragile state already – reeling from the impact of Covid, the 182 day rule on holiday lets and the cost of living crisis. Alongside other businesses they have seen a 40% increase in the living wage since 2020 and are tackling the recent National Insurance rise. Welsh tourism businesses are sitting on a cliff edge.
“We are therefore disappointed that the Welsh Government has approved the Visitor Levy Bill. A Bill which could add more than £35 per week to the price for family of four staying in Wales, at a time when cost has become a key driver in holiday choice.
“Whilst headlines call this a Tourist Tax – it is not restricted to tourists. It will add £1.30 per person per night to your accommodation bill regardless of whether you already live in Wales or you are staying overnight for work.
“The Welsh Government’s own Economic Impact Assessment predicts this Bill will result in net job losses. The winners will be civil servants employed to process and administer the scheme at a cost to the taxpayer, whilst the losers will be locals employed in the tourist sector. There is also no guarantee that local authorities will receive any of the levy once administration costs are taken into account.
“We are delighted therefore that many local authorities have said that they will not implement the visitor levy when it first becomes law. Like them, we believe that the first step to assessing whether a visitor levy is appropriate should be the introduction of a registration scheme for tourist accommodation.
“Only when we have a proper understanding of the type of accommodation and nature of visitor stays will we truly be able to assess whether or not a tourist tax would be a good step for Wales.”
William McNamara, Chief Executive of Bluestone National Park Resort in Pembrokeshire, said:
“With the Visitor Levy Bill now passed by the Senedd, we are entering a new chapter for tourism in Wales. While we now have greater clarity on the framework and rates, many of our original concerns remain.
“Wales risks becoming less competitive, particularly for families and budget-conscious travellers, as this levy introduces an additional cost not seen across large parts of England. The flexibility for local authorities to raise the charge in future adds further uncertainty for businesses already navigating economic pressures.
“While the current administration of Pembrokeshire County Council, where Bluestone is situated, has publicly stated that it will not implement the visitor levy during its present term, we must remain vigilant and be prepared for potential changes following the next local elections in 2027.
“Tourism is vital to communities like Pembrokeshire, and at Bluestone, we’re committed to offering sustainable, high-quality Welsh breaks. We support investment in local services, but any levy must be fair, transparent, and come with a clear reinvestment strategy to keep Wales welcoming, accessible, and competitive.”
Neil Kedward, Chief Executive of the Seren Collection and Chair of Visit Pembrokeshire, said:
“As Chair of Visit Pembrokeshire, I acknowledge the Senedd’s approval of the visitor levy and welcome Pembrokeshire County Council’s recent decision to delay any implementation until after the 2027 local elections. This provides important breathing space during what remain extremely difficult trading conditions for the tourism sector. Ongoing macroeconomic pressures, inflation, staffing shortages, and stuttering consumer confidence are all placing immense strain on businesses trying to operate sustainably in Wales.
“While the levy could offer a route to long-term investment in tourism infrastructure, its timing of the announcement will upset those who are desperately struggling out there. Yet another cost burden is now on the horizon, which might be a tipping point for those still holding on for something better.
“Should councils adopt the levy, it is essential that the tourism sector leads decision-making, ensuring funds are ring-fenced and used to deliver real, value-added projects – not to simply backfill existing funding shortfalls. We are committed to working constructively with our local authority to shape a policy that supports, rather than undermines, the industry’s future.”
David Chapman, Executive Director of UKHospitality Cymru, said:
“The Visitor Levy will reduce visitors to Wales, spend in our local economies and growth in the sector. Fewer low income Welsh families will be able to afford to holiday in their own country.
“We would urge local authorities to take due care and consideration about the impact on hospitality, tourism and leisure businesses and jobs before embarking on introducing a levy. And we’re calling for every penny raised to be ringfenced and reinvested into the visitor economy.
“It's now critical that the Welsh Government doesn't compound the severe challenges facing our sector by going ahead with its proposed business rates reform that excludes hospitality, at present. We're calling for it to urgently revisit the proposals and ensure hospitality businesses are able to benefit from lower business rates bills, after paying significantly more than their fair share for decades.”
Leighton Reed is a partner at accountancy and advisory firm MHA and is based in their Wales office. He said:
“Local residents disagree about visitor levies but the advantage over other forms of taxation such as VAT is that the levies are ploughed back into the local economy. Local authorities will have to carry out a 12 month consultation so the earliest it can apply would be 2027. The rates, at least to start with, are not very high but the money will be used locally to offset the detrimental effects of tourism and councils will have to report back to residents how the money has been spent.
“Wales would join the ranks of many other global destinations that already have a tourism tax including Venice, Barcelona, Paris and in the UK, Manchester. The downside is that the burden of collecting the tax will fall on accommodation businesses in Wales, increasing both the red tape for those businesses and their costs on top of recent National Insurance and National Minimum Wage increases.”
The Bill also introduces a national statutory register for all visitor accommodation providers in Wales. It will be free to join and the Welsh Government says it will provide “valuable data and insight” about the size and scale of the sector across Wales.
The register will support ongoing policy development and decision-making at all levels of government, and it will also ensure that the public are better informed about how property is being used in their areas, says the Welsh Government.
