Welsh Government wants to charge visitors £1.25 a night to stay in Wales

A ‘tourism tax’ Bill - that will give local authorities the option to introduce a small visitor levy in their area - has been introduced by the Welsh Government’s Finance Secretary Mark Drakeford.
The Visitor Accommodation Bill proposes that people staying overnight in Wales will pay a small charge. The money raised will support local tourism activity and infrastructure.
If all Welsh local authorities choose to introduce a visitor levy, it is estimated it could generate up to £33m a year.
The levy would be set at:
• 75p per person per night for people staying in hostels and on campsite pitches.
• £1.25 per person per night for those staying in all other accommodation types.
The legislation also includes a requirement to establish and maintain a register of visitor accommodation in Wales, which would – for the first time – provide a register of the broad range of visitor accommodation available across the country.
Local authorities such as Pembrokeshire Council, will decide if they want to introduce a levy in their area, based on what is best for their communities. It is estimated the earliest this could happen is 2027 after a local authority has consulted their community.
Visitor levies are used successfully in many parts of the world, including Manchester, Greece, Germany, Spain and California.
Mark Drakeford remarked: “This Bill is rooted in the principle of fairness. We know tourism makes an important contribution to the Welsh economy and to Welsh life. We want to ensure its long-term sustainability.
“That’s why we believe it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience. Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.
“It’s a small contribution that could make a big difference.”
A statutory registration scheme for all accommodation providers is expected to start operating in 2026 to support the collection and administration of a visitor levy. It will include details about who is operating in the sector.
The proposals have sparked concerns amongst some tourism operators though, with the chief executive of Bluestone National Park Resort near Narberth, William McNamara stating: “While we have slightly more clarity on the proposed visitor levy, including the £1.25 overnight charge, there remain concerns about its potential impact on the tourism sector.
“Wales risks becoming less attractive to visitors, especially families, who may view this as an additional cost in an already competitive UK market – particularly as this levy is not being introduced in England.
“We recognise the need to invest in local infrastructure and services, but it is crucial that this levy is implemented thoughtfully and transparently to support both visitors and businesses – especially for those already navigating economic challenges.’