The Visitor Levy has officially been signed into law in Wales, beginning the process for its eventual introduction, though next summer is confirmed to be ‘tourism tax free.’ The new legislation grants Wales' 22 local councils the power to choose whether they wish to introduce a charge on overnight stays in their respective areas.
The earliest possible introduction for the levy is anticipated to be in 2027, as local authorities are expected to spend months on consultation and must provide at least twelve months' notice before implementation.
The tax has been the subject of fierce debate, backed by the Senedd, but opposed by the Welsh Tories and much of the tourism and hospitality sectors who fear a negative impact on visitor numbers, spending power, jobs, and small businesses.
Advocates argue the levy will see visitors make a small contribution that can then be used to maintain and enhance communities and attractions in tourism hotspots, noting that such charges are common across Europe and parts of the UK.
The rates for the tax have been set: 75p per person per night for campsites and hostel-style shared accommodation, and £1.30 per person per night for all other types of accommodation, such as hotels or holiday cottages.
A family of four—two adults and two children—staying at a campsite for a week would pay a total of £10.50, while the same family in a holiday cottage would pay £36.30 over seven nights, with the charges remaining constant all year round.
Children under 18 staying in campsites or shared hostel rooms are exempt, as are people staying more than 31 nights or in emergency housing.
The Welsh Government has confirmed the rate is ‘low compared to many other visitor levies around the world’ and is designed to be simple for businesses and visitors to understand.
Accommodation providers will be required to register with the Welsh Revenue Authority (WRA) next year and will face financial penalties of up to £5,000 for failing to pay the levy on time, though smaller providers will have less frequent filing requirements to mitigate impact.
The earliest possible introduction for the levy is anticipated to be in 2027, as local authorities are expected to spend months on consultation and must provide at least twelve months' notice before implementation.
The tax has been the subject of fierce debate, backed by the Senedd, but opposed by the Welsh Tories and much of the tourism and hospitality sectors who fear a negative impact on visitor numbers, spending power, jobs, and small businesses.
Advocates argue the levy will see visitors make a small contribution that can then be used to maintain and enhance communities and attractions in tourism hotspots, noting that such charges are common across Europe and parts of the UK.
The rates for the tax have been set: 75p per person per night for campsites and hostel-style shared accommodation, and £1.30 per person per night for all other types of accommodation, such as hotels or holiday cottages.
A family of four—two adults and two children—staying at a campsite for a week would pay a total of £10.50, while the same family in a holiday cottage would pay £36.30 over seven nights, with the charges remaining constant all year round.
Children under 18 staying in campsites or shared hostel rooms are exempt, as are people staying more than 31 nights or in emergency housing.
The Welsh Government has confirmed the rate is ‘low compared to many other visitor levies around the world’ and is designed to be simple for businesses and visitors to understand.
Accommodation providers will be required to register with the Welsh Revenue Authority (WRA) next year and will face financial penalties of up to £5,000 for failing to pay the levy on time, though smaller providers will have less frequent filing requirements to mitigate impact.