A nightly charge for tourists visiting Wales will come into force from 2027 at the earliest. The Welsh Government say each council will consult with residents over whether to bring it in at all.

The Welsh Government say this is a commitment of their government and is "rooted in the principle of fairness". "We believe it is fair and reasonable to ask visitors to make a small payment towards the costs of tourism," they say. "Introducing a visitor levy would be a step closer towards a fairer, more sustainable Wales, where the benefits and responsibilities of tourism are shared by all".

Tourism represents over 10% of jobs in some areas of Wales.

How much will it raise and what will it pay for?

If all Wales' 22 agree to go ahead with it, it could raise £33m a year. The Welsh Government say it will grow the economy sustainably and support communities and will have cover the costs associated with hosting visitors, such as street cleaning,waste collection, maintaining toilets, and preserving natural and cultural attractions for everyone to enjoy. This will promote the reputation of destinations and enhance the quality of life for residents and has, the Welsh Government say, "the potential to make a significant and visible difference". For the latest politics news in Wales sign up to our newsletter here.

The impact assessment published by the Welsh Government says it is intended that any money made by the scheme would go back into the areas which adopt a levy.

How much will it be?

There will be two levels of charge, 75p per person per night for people staying at campsites (pitches) and hostels or £1.25 per person per night for people staying in all other accommodation types. The rate was chosen to be "low" compared to other levies elsewhere and the design kept simple to make it easier for businesses and visitors to understand.

It will apply to residential school trips arranged by schools, sports, social clubs and/or other educational providers, if they stay in an area that charges a levy.

I'm Welsh, do I have to pay?

The levy would apply to all visitors staying overnight regardless of where they have travelled from – whether they have come from Wales, elsewhere in the UK or from overseas.

Can I not pay it?

Providers will be responsible for paying the levy and they will likely pass it on an "indirect tax", the Welsh Government say.

There are only three exemptions planned:

  • Where the stay is longer than 31 days
  • Is at an individual’s sole or main residence
  • The stay is for emergency or temporary housing arranged by the local authority If a levy was incurred for overnight stays in visitor accommodation due to emergency situations, for example, if a person’s main residence is uninhabitable due to a fire or flood, visitors could seek a refund from the Welsh Revenue Authority. Disabled people who paid additional levy costs when accompanied by a carer will also be able to claim a refund.

What if I own a caravan?

The £1.25 per person per night levy rate applies to static caravans where a contract exists – i.e. an exchange of money has taken place but private owners would not have to pay the per night per person charge when staying in a static caravan that they own.

When will all this happen?

The bill has now been introduced to the Senedd and a series of debates will follow, if the bill does become law, as is expected, councils will then be able to decide whether they want to introduce a levy in their local areas, after first consulting their local population and businesses.

The earliest possible introduction for a visitor levy by a council would be 2027. Each authority will determine how to use the revenues raised to support local tourism and will provide annual reports about how this money is spent.We will work with local authorities, businesses and the Welsh Revenue Authority to create clear and simple guidelines for implementing the levy.

What is the register?

Anyone providing visitor accommodation will need to sign up toa register. There is a separate plan for a licensing scheme, which will build on the national register in the future. The process of registration for all accommodation providers will start in 2026.

There will be financial penalties for anyone who fails to comply with registration requirements. While no amount is given, we're told it "will be proportionate to the loss they cause to the Welsh public purse". However, accommodation providers will not be financially penalised the first time they file a late return.

Where else has this?

Manchester introduced a City Visitor Charge of £1 per person per night in April 2023 which is charged by 73 hotels inthe city centre and raised £2.8m in its first year to support new events.

The Scottish Parliament passed legislation this year – the Visitor Levy (Scotland) Act 2024 – which allows councils to introduce a levy based on a percentage of the accommodation cost, with each rate left to individual councils.

Edinburgh is set to introduce a 5% levy on rooms in 2026.

Bath, Liverpool, Birmingham and London are considering the idea of introducing a similar charge.

What are the downsides?

The Welsh Government's own impact assessment admits that the increased cost for visitors could see them spend less on the wider tourism offer, which may reduce engagement with paid-for attractions. This may be especially prevalent for those in low-income households, who already report that cost is a barrier to engagement with culture. There may also be impacts on educational trips, for example, visits to Eisteddfodau.

The report admits there may be "short term" negative effects including reduced visitor numbers or spending, and increased administrative burden on those who provide visitor accommodation.

It lists the issues as:

  • Time required to apply for registration and manage any amendments
  • Time to process and file a tax return to the WRA (either quarterly or annually)
  • Updating booking systems or property management information systems
  • Financial costs of advisers or accountants, should a provider choose to employ or engage the services of another party to process and file returns on their behalf
  • Financial cost of the visitor levy itself

However, it concludes: "Overall, while the immediate economic impact is expected to be minimal, the long-term benefits could significantly strengthen the tourism sector in Wales."