Welsh visitor levy becomes law

Emily Price

Wales' Visitor Levy Bill has become law after receiving Royal Assent from His Majesty The King.

The legislation gives Welsh councils the choice to introduce a charge on overnight stays, with all funds reinvested locally to support tourism.

The charge for overnight stays in hotels, B&Bs and self-catering accommodation will be £1.30 per person before VAT and a lower rate of 75p will apply to hostels and campsites.

Under 18s staying in shared accommodation will be exempt from charges.

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The Welsh Government says the policy could raise around £33 million a year if all of Wales’ 22 local authorities chose to implement it.

Councils will decide how money raised can be used for tourism-related expenses – such as improving toilets, footpaths, beaches, visitor centres and activities.

Finance Secretary Mark Drakeford said: "The visitor levy represents a small contribution that will make a big difference by helping to maintain and enhance the very attractions that make Wales such a wonderful place to visit and live.

"This historic legislation gives Wales the same tools used so successfully by destinations all over the world to balance the benefits and pressures of tourism between visitors and residents."

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Controversial 

The new law has proved controversial with some tourism chiefs who argue they have been faced with a flood of policy changes over the last two years and small businesses have become overwhelmed by the number of new regulations and costs.

Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: "Labour and Plaid’s toxic Tourism Tax will harm our economy and risk hundreds of jobs.

"Welsh Conservatives voted against the tax at every stage and with the Senedd election next year, there is still an opportunity to end this attack on businesses and jobs.

"The Welsh Conservatives would axe the tax, before it comes into force in 2027."

The Welsh Revenue Authority (WRA) will collect and manage the levy for councils.

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The law will also create a national register for all visitor accommodation providers operating in Wales, which will be run by the WRA.

The Welsh Government says this will provide better data about tourism to help councils and communities make informed decisions about how properties are used in their areas

There is no cost to register and, from Autumn 2026, anyone charging visitors to stay overnight in Wales must sign-up.

But the earliest possible date a levy could be introduced by councils opting to do so would be 2027.

Rebecca Godfrey, interim chief executive of the Welsh Revenue Authority said: "We’re delighted to support local authorities with the collection of the levy and implement the new visitor accommodation register.

"Our proven track record managing Wales’ devolved taxes means we are well positioned to administer the register and levy efficiently.

"We’ll work with providers and the industry to help everyone prepare for autumn 2026."We