## Welsh Government Approves Tourism Tax: What Visitors Need to Know
Wales is set to become the latest UK nation to introduce a tourism tax, as the Welsh Government’s plans to charge overnight visitors have successfully cleared the Senedd’s legislative process. The controversial measure means that, from as early as 2027, tourists opting to stay in Welsh hotels, hostels, campsites, and other short-term accommodation could see an additional charge added to their nightly bills.
The newly-passed legislation grants Wales’ 22 local authorities powers to implement the visitor levy if they choose. It will not be automatically applied across the country; rather, each council must consult with local residents before making a final decision. Already, councils in areas such as Anglesey and Cardiff have indicated an intention to introduce the scheme, but a widespread roll-out remains uncertain.
### Levy Details and Expected Charges
According to government documentation, the tax is set at two levels: visitors staying in hostels or on campsites will face an additional 75p per person per night, excluding anyone under 18. All other accommodation types, including hotels, traditional guesthouses, Airbnbs, and other short-term holiday lets, will be subject to a charge of £1.30 per person per night, applicable to all ages.
The Welsh Government maintains that the levy has been designed to help communities manage the costs associated with tourism. Proceeds are earmarked for improving local infrastructure and services, such as public toilets, walking paths, beaches, and visitor information centres, providing benefits for both tourists and local residents.
### Exemptions and Special Circumstances
There are several exemptions laid out in the legislation. Stays longer than 31 days, accommodation that is someone’s primary residence, or lodging provided through emergency or temporary housing by the local authority will not face the additional charge. Moreover, if a guest’s stay arises from an emergency—such as their home being deemed uninhabitable due to fire or flooding—a refund can be claimed from the Welsh Revenue Authority. Disabled tourists accompanied by carers will also be entitled to seek a refund on levy costs, aiming to ensure that the charge does not disproportionately affect vulnerable groups.
### Economic Impact: Opportunities and Concerns
If all councils adopt the measure, projections suggest the tax could raise up to £33 million annually. In Cardiff, one of the early adopters, estimates indicate income could reach £4 million, intended to be reinvested in the city’s tourism offer.
Nevertheless, critics argue that the levy may bring unintended negative consequences. Reports commissioned by the Welsh Government have warned that the visitor charge could lead to a 1.6% decline in tourist numbers, resulting in a reduction in economic output by as much as £47.5 million and a loss of approximately 730 private sector jobs under the worst-case scenario. Even more moderate forecasts suggest the potential for nearly 500 full-time equivalent positions to be lost, primarily in industries such as accommodation, hospitality, retail, and transport.
### Industry Response
Tourism and hospitality businesses across Wales have voiced strong opposition, warning that the new levy adds to the growing regulatory and cost burdens they face. The sector has already contended with tighter regulations, such as the widely-debated “182-day rule” for short-term lets, as well as existing business rates and council tax obligations.
The Wales Tourism Alliance, representing industry stakeholders, has stated its disappointment with the levy, highlighting both the increased costs for businesses and a perceived lack of commitment that the raised funds will be directly channelled into enhancing the tourism experience. The group further cautions that the Welsh tourism sector is at its most fragile in years, and the levy risks compounding industry pressures rather than alleviating them.
### Political Reactions and Future Prospects
The policy has also proven divisive in political circles. Welsh Conservative representatives have pledged to repeal the measure should they secure power in the 2026 elections, denouncing it as potentially harmful to vital regional economies. Conversely, supporters within the Welsh Government argue that the tax aligns Wales with numerous international destinations already employing similar levies, ensuring visitors contribute to the maintenance of the locations they enjoy.
### Implementation and Next Steps
While the earliest possible launch date is 2027, practical implementation hinges on local councils undergoing public consultation and developing administrative systems to collect and manage the tax. Payment of the levy will be processed by accommodation providers, who are expected to pass the cost on to guests within their booking fees.
### Global Context
Overnight visitor taxes are commonplace in many global tourist hotspots, including major European cities and regions. Proponents in Wales assert that the additional revenue provides a much-needed resource for regions that see their infrastructure stretched during peak tourism seasons, while opponents fear a price-sensitive market may be deterred, sending holidaymakers elsewhere.
### Conclusion
As the tourism tax debate continues, observers across Wales will be watching closely to see how individual councils respond and whether the additional revenue will deliver on its promises without undermining the sector’s competitive position. For now, visitors planning future stays in Wales should prepare for the possibility of a small but notable addition to their accommodation bills.