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Opinion

A visitor levy is an investment in our future

By Emily Price
Mark Drakeford in Milford Haven

Mark Drakeford - Cabinet Secretary for Finance

Whether it’s the majestic mountain ranges of Eryri, our vibrant cities, or our picturesque coastline, Wales has so much to offer visitors. But we must ensure
tourism and our communities continue to thrive.

This week, the Welsh Government has introduced a Bill which will do just that. If passed by the Senedd, it will give local authorities the ability to introduce a small charge on overnight visitor stays in their area – this is known as a visitor levy.

We want everyone to be able to enjoy everything our beautiful country has to offer. We believe local infrastructure and services should be funded by all those who use them.

The visitor levy is designed to ensure visitors make a small contribution to the maintenance and improvement of the areas they visit, alongside local residents.

This Bill supports our ambitions for sustainable tourism in Wales. The Bill is an important step towards that goal because the proceeds from the levy will be
reinvested in schemes and services which support tourism in a local area.

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Unique

Wales is a diverse country – some communities might benefit from introducing a levy more than others – it will be up to local authorities to decide whether they apply in their area, based on the unique needs and features of their area.

Before they do so, they must consult locally to help inform their decision. We
estimate the earliest a visitor levy could be introduced in any part of Wales would be 2027.

If the Bill is passed, those areas which decide to use a levy, the charge would be 75p per person per night for visitor stays at campsites and hostels, and £1.25 per person per night for stays in other visitor accommodation.

We estimate the levy could raise up to £33m per year if it was introduced in every area of Wales. This would raise new money for local communities, which would be re-invested in the area to improve local facilities and infrastructure used by visitors, such as public toilets, footpaths, beaches and visitor centres.

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Potential

This funding could also be allocated to the promotion of sustainable tourism and the support of the Welsh language to ensure the continued growth and preservation of Cymraeg.

This recognises the important link between heritage and tourism. Do we want to miss out on the transformative opportunities a levy could provide?

Many places across Europe have introduced a visitor levy, including Venice and
Amsterdam. Manchester became the first UK city to introduce a charge for visitors to hotels, raising £2.8m in its first year – the revenue raised has been spent on improving the local area through street cleaning and public events.

The Balearic Islands’ charge for visitors has financed 168 projects worth €263m
since 2016, covering a wide range of areas, such as the environment, cultural
heritage, employment and social renting.

Proud

We see the same potential in Wales. And the levy could help support similar
investments in local areas. Wales is a fantastic destination with something for everyone. We are proud to show it off.

That’s why we think it’s fair we ask those visitors coming to stay to make a small contribution to help protect and maintain its beauty and to invest in our communities.

Imagine a future where every visitor contributes to the preservation and
enhancement of the very place they come to enjoy. By asking visitors to make a fair contribution to sustain a tourism industry that is so vital to our economy, we can ensure Wales remains an attractive visitor destination
for years to come.

This visitor levy is an investment in our future.

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37 comments

Paul

In theory this is a good idea. In practice though I don’t have any faith in the money trickling down to the community.

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Deiniol

Might as well not bother trying then.

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Ap Kenneth

If such a charge is introduced then the tourism sector in that area should have an input into how the monies are utilised. They need to see the benefits as they will be collecting the levy.

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Ryan Hopkins

I mean, not to be rude, but this was addressed in the article: "Before they do so, they must consult locally to help inform their decision." "This would raise new money for local communities, which would be re-invested in the area to improve local facilities and infrastructure used by visitors, such as public toilets, footpaths, beaches and visitor centres." Like literally what more could they do? Sustainable public services and additional funds for community projects can only serve to help the businesses in these communities.

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Howie

Plenty of consultation ends with no notice taken of the consultation as the CT payers in Caerphilly CBC will attest to

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In reply to Howie

Llyn

This tac will be on law with with legislative provisions stipulating where the money can go. Not consultation.

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Ap Kenneth

Consult is not exactly the same as say, being on the actual committee making the spending decisions

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Swn Y Mor

I am afraid we have been here before. 'Lets us here your views, make your voice heard fill in the consultation'. People make their views known and are then subsequently ignored by the politicians.

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Bert

Meanwhile, VIP lanes. And no-one is laughing.

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Bert

When were you last put off a holiday destination by the taxes levied?

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Ap Kenneth

The last three breaks abroad have involved paying a tourist tax, it is minor and does not affect your decision on whether to go or not.

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Ianto

If they don't want to pay £1.25 a night to support the local infrastructure - all of 125 pennies - they're hardly likely to contribute much to the economy, are they? We won't miss them.

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Paul

If £1.25/ night is enough to Stop your holiday you probably aren’t going to contribute much to the local economy anyway.

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Gareth

Since 2012 Catalonia has had a tourist tax, and in the Balearic islands since2016, and tourists from Britain still holiday there in the millions, since the introduction, if this is such a "appalling idea", why do they continue to holiday there? Thailand, Belgium, France, Italy, Greece, Germany and many more have a tourist tax, and nobody seems to be avoiding these places as a result of the tax, so why would Cymru be different? Cornwall seem quite keen on the idea also.

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Y Cymro

A tourism tax is normal in most developed countries. Anyone who visits London will realise how much tourists are charged through the nose, in most cases exploited. But it's what you do with the money raised is the important thing. Tourists visit, some on a regular basis, popular parts of Wales because they love the culture, history & landscape so choose to return. Any levy should go to back into those communities to not only protect the landscape but also improve facilities for both locals and tourists alike.

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Llyn

"Any levy should go to back into those communities to not only protect the landscape but also improve facilities for both locals and tourists alike" - it will if passed. The money from the tax will be hypothecated.

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Y Cymro

It's been said that those of a Conservative bent buy farms to avoid inheritance tax. And how they often invest their ill-gotten gains in cattle and freight companies? It all makes sense now. They are the biggest bullshippers going.

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Elin

Worth it if just to keep our public toilets open

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Swn Y Mor

Only in football management can I think of a career where someone can be mediocre to poor and keep getting top jobs. Lets start at the end of the article. 'Wales is a fantastic destination with something for everyone. We are proud to show it off'. Really? It was only last year that there was a committee lamenting that 'Wales punches below its weight in attracting international visitors' and how 'Wales lacks a distinct brand, unlike other nations in the UK'. 'We estimate the levy could raise up to £33m per year if it was introduced in every area of Wales. This would raise new money for local communities, which would be re-invested in the area to improve local facilities and infrastructure used by visitors, such as public toilets, footpaths, beaches and visitor centres. Hang on a minute, what are our taxes going towards if not for these above areas? 'This funding could also be allocated to the promotion of sustainable tourism and the support of the Welsh language to ensure the continued growth and preservation of Cymraeg'. Unbelievable and frankly embarrassing to hear a Welsh minister say this. Wales needs foreigners money to help sustain our language. What have Welsh Labour been doing? Maybe if they stopped spending as much money on vanity projects, white elephants and third sector charities like Stonewall we would have more money available for the language. In conclusion I am left with the belief that rather than being used to promote areas such as sustainable tourism, the levy is a devious way to get tourists to pay for areas that the Welsh government itself should be doing.

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Chad

Let's start with your first paragraph. How do the two examples you provide contradict the statement? It's perfectly possible that "Wales is a fantastic destination with something for everyone" yet "punches below its weight in attracting international visitors" and "lacks a distinct brand". It's not enough being awesome if no-one knows it. Everyone in business knows this. It's why a trillion dollars are spent on ads every year.

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Swn Y Mor

'It's not enough being awesome if no one knows it'. That is the point. Why do a lot of people not know about Wales. How can a country with a rich history 'lack a disinct brand'? Or the other side of a tourism strategy. From the top of my head the Beast of Bodmin in Cornwall the Loch Ness monster in Scotland. Whether real or not it brings in the tourists. Does a vistor levy, the 82 day criteria and the 20 mph rules help tourism? The money spent on the 20 mph could have gone to promoting Wales instead.

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In reply to Swn Y Mor

Chad

If you want to improve the visitor economy, which can range from free toilets to Visit Conwy ads on the Paris Metro, money must be spent. That money must come from somewhere, and it must be a reliable source of funds which rules out ad-hoc sums from other tiers of government and it rules out ctax which must be spent first on legal priorities so it stops in a downturn (like we are seeing now with public toilets closing) just when the sector needs supporting more. Unless you have a better idea, a small levy on overnight accommodation is the only option other than doing nothing so nothing improves, or in the case of a downturn, everything gets worse making it more difficult to bounce back.

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In reply to Chad

Swn Y Mor

'A small levy on overnight accommodation is the only other option..., it must be a reliable source of income'. I disagree on both points. The all important c word is mentioned, could. It 'could raise up to £33m per year it it was introduced in every area of Wales'. What happens if not all areas implement this levy? How low will this tax take go? What could be then accomplished with less money? This is a typical tunnel vision government idea. See the pounds signs but does not look at the whole picture. The policy weights more towards overnight visits being tourists. What happens to those who are on business trips? Even better we could be in a situation where individuals who live in one part of Wales end up paying to visit their own country. There is something ironic about this whole idea. The £33 million figure is only £1 million more than what was spent on the 20 mph scheme. Look what Drakeford says we could do with £33 million and then realize that we could have done this already had we not wasted in on the 20 mph idea.

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In reply to Swn Y Mor

Chad

Are you saying we shouldn't develop the visitor economy or are you proposing a different funding source?

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In reply to Chad

Swn Y Mor

First part no, second part yes.

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In reply to Swn Y Mor

Chad

What alternative funding source are you proposing that isn't reliant on the largesse of other tiers of government and won't disappear completely in a downturn?

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In reply to Chad

Swn Y Mor

I was not proposing anything that you have just said. I proposed funding should not come from the tourist tax/levy. How much of the £33 million figure would actually go towards developing the visitor economy because it is not all specifically for that? The Welsh government already provides funding to 'distinctive, stand out tourism projects that align with the priorities of Welsh government'. Two examples are the Brilliant Basics fund and the Wales Tourism Investment Fund. The government in the past has stated that they 'will continue to promote domestic and international tourism'.  

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In reply to Swn Y Mor

Chad

Which of those will keep public toilets open?

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In reply to Chad

Swn Y Mor

From the Brilliant Basics Fund 2025-2026/7. '(iii) Inclusive tourism and enhancing accessibility. Upgrading / new accessible toilet facilities with dedicated ‘changing places’ toilet facilities in areas of high visitor footfall'.

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In reply to Swn Y Mor

Chad

Do you understand the difference between capex and opex? It's not enough to get the money to build stuff if you don't have the money to run it each year.

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In reply to Chad

Swn Y Mor

I understand this. In terms of running costs maybe expanding the numbers of toilets where you have to pay to use them.

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In reply to Swn Y Mor

Chad

So why are they being closed instead, now belts are being tightened?

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In reply to Chad

Swn Y Mor

That is a very important question, however I cannot give you a definite answer to it. The only thing I can say is that from news reports there are a number of differing opinions. The Westminster/Conservative government being blamed for a lack of funding to Wales. Welsh Labour not giving enough to local authorities. Local authorities being wasteful with the money they are already have.

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In reply to Swn Y Mor

Chad

It's safe to say they wouldn't be closing if councils had a revenue stream that wasn't reliant on the largesse of other tiers of government and was ringfenced for the visitor economy. Wouldn't you agree?

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In reply to Chad

Swn Y Mor

If it is ring fenced for the visitor economy. Two years is a long time and in that time maybe Drakeford will add more detail to his plan. However, 'this funding could also be allocated to the promotion of sustainable tourism and the support of the Welsh language to ensure the continued growth and preservation of Cymraeg'. Maybe it is cynicism with Welsh politics but it would not surprise me if the biggest portions of the supposed £33 million figure go to the above more than public toilets/the visitor economy.

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John Ellis

I can't see why some people are making a such a big issue about this proposal. It's hardly as if the amount proposed for the charge is extortionate - £1.25 per person per night, I understand. My own native city of Manchester where I grew up has brought in a tourist tax now that - in a way that would have seemed wholly improbable in my young days! - the place has morphed into a tourist destination. I don't recall any particular opposition to that levy. And I remember when visiting Bulgaria over twenty years ago that we tourists were routinely charged double the amount that locals had to pay when visiting attractions. Given that Bulgaria back then was struggling to adjust to the economic convulsions arising from the collapse of communism, we recognized that we were a lot better off than the average Bulgarian, and didn't complain at all. And, perhaps most significantly, the BBC's Wales Today recently conducted some vox pops among people visiting Llandudno, and only one - rather miserable-looking! - elderly couple who looked as if griping might be their default position registered an objection. The rest said that the amount wouldn't be a significant extra cost, one commenting that it was a price well worth paying for the opportunity to spend time 'in such a beautiful place'. We in Wales seem so often to be gnawed by a sort of fear that we're perhaps somehow 'not worth it'. Whereas I think that we really are!

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Mary Adams

My son is on national living wage, he has 3 children and a stay at home wife as they can't afford childcare for their youngest child (2). If they go on a week's holiday it is going to cost them an additional £6.25 a night. They don't have enough enough slack in their budget for this. As they live in Wales in any case why should they be financially penalised for having a holiday here.

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