Tourism Tax ‘Will Hit Caravan Holidays Hardest’

Families staying in their own touring caravans or motorhomes on Welsh caravan and camping sites will face a “disproportionate” 26% increase in the cost of their breaks if a tourism levy is brought in next year, two organisations are warning.

The warning comes from the Holiday and Residential Parks Association (HARPA) and the Caravan and Motorhome Club, both of which have spoken out about a proposed tiering system of the levy.

Affordable motorhome and caravan breaks have been put into the same tax bracket as a business trip or a hotel break, disproportionately taxing those with touring caravans and motorhomes, the organisations said.

The Welsh tourism levy has been set at £1.30 per person per night, regardless of the cost of the accommodation. For a family of five that would equate to £6.50 extra per night. An average pitch fee for a touring caravan or motorhome is just £25 per night – pushing up the per night cost by 26%.

Meanwhile, a single business traveller staying in a five-star hotel costing £130 a night would pay £1.30 – only an extra 1% of the total cost.

HARPA director-general Debbie Walker said:

“We understand that local authorities need to raise revenue, but this approach disproportionally hits family holidaymakers seeking a low-cost break. It is simply not fair to put families holidaying in their own accommodation in the same tier as someone staying in a five-star hotel.”

Harvey Alexander, CEO of the Caravan and Motorhome Club, said:

“We are disappointed with the Welsh Government’s approach of tiering the tourism tax based on the type of accommodation our members and guests bring to Wales.

 

“We have consistently advocated a fair, flat-rate, lower-tier levy across all campsite pitches, ensuring the great outdoors remains accessible and affordable for everyone – whether they stay in a tent, a caravan, or a motorhome.”

The sector has also warned that having a higher rate for touring pitches could have unintended consequences. A disproportionate levy could mean some holidaymakers avoiding managed campsites and holiday parks altogether, and instead park in laybys or carparks with no access to facilities or waste disposal, the organisations said.

“The Welsh Government’s tiering system is inconsistent and difficult to justify,” Debbie Walker added. “We are asking the Government to review it immediately and to keep camping and caravanning affordable.”