Visitor Levy - proposed Welsh Government legislation
In November 2024, the Welsh Government published its Visitor Levy Bill alongside a number of Impact Assessments and an Explanatory Memorandum. The Bill is currently going through the Welsh Senedd before it is voted on in the Summer of 2025.
What is the Visitor Levy? The Visitor Levy - or Tourist Tax as it is often called - is a tax on people staying in visitor accommodation in Wales.
How much will it be? The proposed tax will be £1.25 per person per night in hotels, guest houses, self catered accommodation, etc, and 75p per person per night in campsites and hostels. It is anticipated that this will attract VAT although this is currently unclear.
When will it be introduced? The earliest it will be introduced is April 2027.
Will it be across the whole of Wales? Not necessarily - it is proposed that local authorities will be able to opt into or out of implementing it.
Who will have to pay it? Anyone staying in "visitor accommodation" in Wales will have to pay it. This includes:
What is classed as "Visitor Accommodation"? At the moment that's rather vague. It is described as anyone entering into a contract for accommodation in Wales but does not state that it needs to be a commercial contract nor that it has to involve an exchange of money.
How much will be raised? This is difficult to gauge because the data underpinning the Bill is not very robust and there is no consensus on how much visitor accommodation there is in Wales nor how many people stay overnight. The Welsh Government estimates that if every Local Authority introduces the Visitor Levy then it may raise £33m per year. However it is possible that the scheme will cost more to run than it will raise - resulting in a net financial cost to Wales.
What will the money be spent on? Local authorities will be expected to spend the money on improving the visitor experience and will have to consult initially with local people and businesses. However the guidelines on exactly what the money can be spent on lack detail.
What is the WTA's view?
The WTA submitted a twenty page consultation response to the Finance Committee and a seventeen page response to the Legislation, Justice and Constitution Committee. Both documents highlight a range of concerns we have about the proposals. In particular we highlighted the following issues:
Our Members share our concerns about the Visitor Levy. We feel that it should not be put into legislation in its current form. We would prefer to see the introduction of a Visitor Accommodation Register which includes compliance with relevant legislation (eg health and safety). This would provide visitors with the assurance that their accommodation meets certain standards and also give the Welsh Government better data on which to base a future Visitor Levy should they decide to do so.
Want to find out more?
Read the Visitor Levy Bill
Read the Explanatory Memorandum
Read the background, watch the evidence sessions and read the consultation responses
What is the Visitor Levy? The Visitor Levy - or Tourist Tax as it is often called - is a tax on people staying in visitor accommodation in Wales.
How much will it be? The proposed tax will be £1.25 per person per night in hotels, guest houses, self catered accommodation, etc, and 75p per person per night in campsites and hostels. It is anticipated that this will attract VAT although this is currently unclear.
When will it be introduced? The earliest it will be introduced is April 2027.
Will it be across the whole of Wales? Not necessarily - it is proposed that local authorities will be able to opt into or out of implementing it.
Who will have to pay it? Anyone staying in "visitor accommodation" in Wales will have to pay it. This includes:
- people already living in Wales visiting other parts of Wales
- children, babies and older people (unless disabled)
- children on educational visits (staying in "visitor accommodation")
- people visiting Wales regardless of the reason for their visit - this includes staying in Wales for work.
What is classed as "Visitor Accommodation"? At the moment that's rather vague. It is described as anyone entering into a contract for accommodation in Wales but does not state that it needs to be a commercial contract nor that it has to involve an exchange of money.
How much will be raised? This is difficult to gauge because the data underpinning the Bill is not very robust and there is no consensus on how much visitor accommodation there is in Wales nor how many people stay overnight. The Welsh Government estimates that if every Local Authority introduces the Visitor Levy then it may raise £33m per year. However it is possible that the scheme will cost more to run than it will raise - resulting in a net financial cost to Wales.
What will the money be spent on? Local authorities will be expected to spend the money on improving the visitor experience and will have to consult initially with local people and businesses. However the guidelines on exactly what the money can be spent on lack detail.
What is the WTA's view?
The WTA submitted a twenty page consultation response to the Finance Committee and a seventeen page response to the Legislation, Justice and Constitution Committee. Both documents highlight a range of concerns we have about the proposals. In particular we highlighted the following issues:
- the Welsh Government’s own Explanatory Memorandum to the Bill and Economic Impact Assessment suggest that this policy will not cover its own costs of administration,
- the Bill extends well beyond tourism visits and includes, for example, stays of less than 31 days for work or education purposes,
- local authorities will have sole control of any net tax take and the Bill’s is drafted such that spend does not need to have a tourism-led focus,
- the data drawn on and assumptions made are unreliable to a concerning degree
- the research provided by the industry, including Wales own fora chairs, has not been given due weight
- no account has been taken of the additional pressures already exerted on Welsh tourism over the past five years including the cost of living crisis, Covid and the 182 day rule on holiday lets.
Our Members share our concerns about the Visitor Levy. We feel that it should not be put into legislation in its current form. We would prefer to see the introduction of a Visitor Accommodation Register which includes compliance with relevant legislation (eg health and safety). This would provide visitors with the assurance that their accommodation meets certain standards and also give the Welsh Government better data on which to base a future Visitor Levy should they decide to do so.
Want to find out more?
Read the Visitor Levy Bill
Read the Explanatory Memorandum
Read the background, watch the evidence sessions and read the consultation responses