A Bill to give local authorities the option to introduce a visitor levy in their area to re-invest in tourism has been introduced by Finance Secretary Mark Drakeford.
The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill proposes that people staying overnight in Wales will pay a charge. The money raised will support local tourism activity and infrastructure, Welsh Government said.
The Wales Tourism Alliance (WTA) said it was “disappointed” with the contents of the Bill, adding that it felt Welsh Government had missed an opportunity to deliver “a gold standard in tourism and accommodation”.
Instead, warned the WTA, if the Bill passes it will make Wales more expensive for visitors without any perceived added-value for visitors.
William McNamara, Chief Executive of Bluestone National Park Resort in Pembrokeshire, said the move risked making Wales less attractive to visitors.
If all Welsh local authorities choose to introduce a visitor levy, Welsh Government estimates it could generate up to £33 million a year.
The levy would be set at:
- 75p per person per night for people staying in hostels and on campsite pitches.
- £1.25 per person per night for those staying in all other accommodation types.
The Bill says: “Tourism plays a vital role in supporting local economies, but unbalanced, poorly supported tourism can put pressure on local communities and undermine the high-quality services and experiences we want to offer visitors.”
Welsh Government said the introduction of the legislation marked the delivery of a key Programme for Government commitment. It said the levy “will help to invest in the future of Wales as all visitors staying overnight would contribute to the preservation of the country’s beauty and heritage”, adding that it “would provide local communities the opportunity to generate additional revenues”.
The legislation also includes a requirement to establish and maintain a register of visitor accommodation in Wales, which would – for the first time – provide a register of the broad range of visitor accommodation available across the country.
The Bill will now be scrutinised by the Senedd and a decision about whether it will become law is expected in 2025.
If the Bill does become law, local authorities will then be able to decide whether they want to introduce a levy in their local areas, after consulting their local population and businesses. The earliest possible introduction for a visitor levy by a local authority in their area would be 2027.
Visitor levies are used successfully in many parts of the world, including Manchester, Greece, Germany, Netherlands, Spain, Portugal and California, Welsh Government said. The funds raised are used to support a healthy visitor economy by protecting and investing in the infrastructure and services guests enjoy, it added.
Finance Secretary Mark Drakeford said:
“This Bill is rooted in the principle of fairness. 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.
“Money raised through a levy would be retained by local authorities and re-invested back into their local areas to support local, sustainable tourism. It’s a small contribution that could make a big difference.”
A statutory registration scheme for all accommodation providers is expected to start operating in 2026 to support the collection and administration of a visitor levy.
It will include details about who is operating in the sector, where they are operating, and how they are operating. Welsh Government said it would help establish a better understanding of the sector and support future policy decisions at a local and national level.
Councillor Andrew Morgan OBE, WLGA Leader, said:
“This Bill will give councils the option to introduce a visitor levy on overnight stays. It’s a way to raise extra funds to support local services and improve amenities that benefit both visitors and the community.
“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.
“We’re glad to have worked closely with the Welsh Government on this and look forward to seeing the draft legislation in the coming weeks, which will mark an important step forward for Wales' tourism and local economies.”
Rowland Rees-Evans, Chair of the Wales Tourism Alliance, said:
“The tourism and hospitality industry contributes billions of pounds annually to the Welsh economy and employs over 11% of the working population and the Wales Tourism Alliance does not believe that a Visitor Levy is the right solution for Wales.
“However, since it became clear that a Visitor Levy is a preferred policy for the Welsh Government we have put a huge amount of work in to ensure that any proposals would both recognise the importance of tourism to Wales and be fit for purpose.
“We are disappointed that a number of the key points on which we felt we had reached an understanding with the Welsh Government have not been adequately reflected in the proposed policy.
“In particular we feel that the Welsh Government has missed a key opportunity to establish a registration scheme for self-catering accommodation that would have incorporated key health and safety criteria and assured visitors that their accommodation meets basic assurance standards.
“What has been proposed will instead increase the costs for tourism and hospitality businesses, which will be passed on to our visitors, without any perceived ‘added value’.
“We are also disappointed that there is no clear commitment that the funding raised by the levy will be dedicated to improving the visitor experience in Wales.
“This was the Welsh Government’s opportunity to deliver a gold standard in tourism and accommodation – setting Wales apart from the rest of the UK. Instead it has merely made Wales more expensive without any perceived added-value for our visitors.”
William McNamara, Chief Executive of Bluestone National Park Resort in Pembrokeshire, said:
“While we have slightly more clarity on the proposed visitor levy, including the £1.25 overnight charge, there remain concerns about its potential impact on the tourism sector. Wales risks becoming less attractive to visitors, especially families, who may view this as an additional cost in an already competitive UK market – particularly as this levy is not being introduced in England. The flexibility for councils to raise charges in the future also adds an element of uncertainty that must be carefully managed.
“At Bluestone, we are proud to offer sustainable, luxury breaks that celebrate Wales’ unique heritage and natural beauty. We recognise the need to invest in local infrastructure and services, but it is crucial that this levy is implemented thoughtfully and transparently to support both visitors and businesses – especially for those already navigating economic challenges.
“Tourism is the backbone of communities like Pembrokeshire, and reinvestment in rural areas can undoubtedly bring benefits. However, the success of this levy will depend on clear accountability for how funds are used and a commitment to ensuring Wales remains a welcoming and competitive destination for all.”
Penny Paddle, corporate partner at law firm Spencer West LLP, said:
“The introduction of a tourism levy in Wales could have significant implications for the leisure, tourism, and hospitality sectors. Whilst the legislation aims to reduce the burden on local infrastructure and services resulting from a regular influx of tourists by providing additional funding for them, it may also create financial and operational challenges for businesses in these industries.
“From a positive perspective, the reinvestment of funds into local infrastructure could enhance visitor experiences, potentially attracting more tourists over the long term. Improved facilities and local amenities could also help bolster community support for tourism, fostering a more sustainable relationship between visitors and local communities.
“However, the levy could impose additional costs on tourists, potentially deterring budget-conscious visitors or driving them to alternative destinations without such charges. This risk may disproportionately affect smaller accommodation providers, hostels, and campsites, which rely on price-sensitive customers. Additionally, implementing the scheme and managing the levy collection could increase administrative burdens and compliance costs for businesses.
“Concerns raised by industry representatives, such as the potential impact on employment and competitiveness, highlight the need for careful planning and extensive consultation and local authorities will have to balance the need for increased revenue with the industry's overall economic health.”
