Wales tourism tax plans to be published as overnight visitors may be charged £1.25 per day

The Welsh Government will publish proposals on Monday for what it calls a "visitor levy" but which opponents describe as a "tourism tax".

It will introduce a bill into the Senedd which, if it becomes law, would give local councils the power to charge £1.25 per person per overnight stay, including children.

Those staying in hostels and camping would be charged 75p per person per overnight stay. Day visitors would not be charged.

It’s estimated that the levy could bring in as much as £33million per year if every Welsh local authority were to introduce it.

Supporters say the change will raise money to pay for vital services, infrastructure and to help offset the impact of tourists in popular areas.

Opponents say that it will discourage visitors and cost tourism businesses in lost revenue and increased red tape.

Any change won’t come into effect for at least three years. Firstly, Senedd Members have to vote to change the law and then any local council which wanted to introduce a charge would have to carry out a consultation and wait 12 months. It means the earliest that any visitor levy would be charged would be 2027.

It’s also thought that not every council would want to introduce a visitor levy.

However, once a local authority has introduced it, they would be able to raise the charge by as much as they see fit, subject to further consultation and a possible cap imposed by Welsh ministers.

Visitor levies are used in many parts of the world, including Manchester, Greece, Germany, Netherlands, Spain, Portugal and California.

Any Welsh council charging the visitor levy would have to publish a report about how the money is spent, proving that it was used for the purposes intended.

Under the proposals, certain groups will be exempt from paying the levy or can claim refunds, such as homeless people placed in hotels and those who are forced to stay in hotels because of emergencies like fire or flooding.

The Welsh Government is expected to publish an economic impact assessment alongside the legislation which will set out potential positive, negative and neutral effects of the change.

Wales' 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.

Councillor Andrew Morgan OBE, Welsh Local Government Association 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."

Welsh Conservatives' Peter Fox MS, shadow minister for finance and local government, said: "We’ve been absolutely clear from the start that this policy is the wrong one for Wales. A tourism tax will risk jobs at a time when businesses are being clobbered by Labour, it will impose red tape, and it will work against its own aims by encouraging visitors to use more council-maintained attractions and services. Our tourism industry should be nurtured by the Welsh Government, not hamstrung by new taxes."

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