Millions of visitors to Wales could soon be spending more, as a visitor levy on overnight stays is set to be introduced.
The Welsh Government is planning to allow local authorities to introduce a visitor levy on overnight stays, with two levels of charges depending on the accommodation.
For travellers staying in hostels and at campsites, there will be a 75p charge per person per night. For all other accommodation types, the charge will be £1.25 per person per night. Finance secretary Mark Drakeford stated that the visitor levy would be a “small contribution that could make a big difference”.
Local councils will decide how to spend the revenues but the aim is to enhance facilities that benefit both residents and visitors, such as public toilets and parking. Mr Drakeford added that the idea was “rooted in the principle of fairness”.
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The Welsh Government will continue to discuss the new levy — planned for the agenda on November 26. The aim is that the levy on its overnight visitors will help grow the country’s economy, support for communities, preservation of Wales, and develop sustainable tourism.
In a report published by the Welsh Government, it states: “We believe it is fair and reasonable to ask visitors to make a small contribution towards the wider costs of tourism. Our intention is to foster a sense of shared responsibility between residents and visitors, to protect, and invest in, local areas.”
The Welsh Government believes that “unbalanced, poorly supported tourism” is adding to the pressures on local communities, and undermining the high-quality amenities. If the levy were to be introduced, it would represent a small amount of the visitor’s overall spend. The rate would need to approval of the Senedd (the Welsh Parliament) as part of the legislative process, and if adopted by a local authority, the levy will then apply to visitors staying over night.
If the bill passes, then local authorities could consult with communities before deciding to introduce a visitor levy in their area. This is estimated to take place around summer 2025. In 2026, the local authorities would then give the public notice following a decision to in introduce the levy in their area.
By the end of 2027, the notice period will end. This is the indicative likely earliest point at which a visitor levy could operate in Wales legislation. At the moment, there are no plans to implement a tourist levy on day visitors.
According to North Wales Live, the Welsh Government said: “The introduction of the legislation marks the delivery of a key Programme for Government commitment and will help to invest in the future of Wales as all visitors staying overnight would contribute to the preservation of the country’s beauty and heritage.”
Conservative Aberconwy MS Janet Finch-Saunders added: “This is an absolute disaster and I am extremely disappointed that the Welsh Government have decided to press forward with this. Yet another tax coming our way and one that will specifically harm small businesses.
“I have raised this repeatedly over the years, highlighting the harm it will cause. Even after a consultation that outlines peoples widespread concerns about the tax and what it will mean for local businesses and tourism more broadly, the Welsh Government are still hellbent on introducing yet another tax.
“Tourism employs one in nine people in Wales, with over 75 per cent in hospitality supporting local communities. Together, these sectors contribute £2.4 billion annually to Wales’s GDP. A Wales Tourism Alliance survey found 70 per cent of visitors might holiday elsewhere if a tax is introduced. Aberconwy relies on tourism in a way that many simply do not understand. It is our life blood and this tax will only start to clot that essential flow.”
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