Holidaymakers staying in Wales overnight will soon be hit by a visitor accommodation levy. Commonly referred to as a tourist tax, the small fee won’t come into effect until 2027 at the earliest. Visitors staying in campsites and hostels will be charged 75p per person, per night, while a £1.25 tax per person per night will be added for stays in all other types of accommodation, including hotels and Airbnbs.
Mark Drakeford MS, Cabinet Secretary for Finance and the Welsh Language, says the levy will help ensure “those who benefit from tourism will make a small but important contribution to the maintenance of local areas”. He added: “Visitor levies play a crucial role in supporting communities and protecting the environment all over the world. Many countries have seen real benefits from the reinvestment of visitor levy funds. We believe such success can be replicated in Wales.”
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According to Wales Online, each of Wales’ 22 councils will themselves decide whether to introduce one at all. If all local authorities introduced a levy, it could potentially generate up to £33m across Wales. However, not everybody agreed with the bill – with Conservative MS Peter Fox arguing: “This tax is the wrong one for Wales and the wrong one for our tourism industry. Not only will it impose huge amounts of red tape on small businesses and add significant costs to family holidays, it will also work against its own aims by driving visitors to using more council-maintained facilities. We should be nurturing our tourism sector, not hammering it with new taxes.”
But Wales isn’t the only part of the UK considering a tourist tax. Earlier this year, the Scottish government passed a bill giving local authorities the power to impose a levy in respect of persons staying in certain types of accommodation overnight. Edinburgh’s city council has already approved a five per cent levy which will be capped at seven consecutive days – starting in 2026.
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In England, the Conservative government stated last year that it had no plans to implement a tourist tax. However, several cities made use of a legal workaround referred to as a Business Improvement District (BID).
BIDs collect additional business rates payments (known as BID levies) from businesses operating in specified geographical areas. These have already raised a staggering £2.8 million in Manchester, where the levy is payable by hotels and serviced apartments with a rateable value of £75,000 or more, in an area within Manchester city centre and a small adjoining part of Salford.
An accommodation BID in Liverpool was also introduced last year, for accommodation properties with a rateable value of £45,000 or more. Other tourism BIDs exist in Blackpool, Great Yarmouth, Tweed Valley, Moray & Speyside, and Loch Ness. According to reports, cities including Bath, Birmingham, and London are considering similar charges – although no bills have been passed for this to happen.
Every UK town or city with BID levies or tourism tax
- Manchester
- Bournemouth
- Christchurch
- Poole
- Liverpool
- Blackpool
- Great Yarmouth
- Tweed Valley
- Loch Ness
- Moray & Speyside
- Edinburgh
Tourist tax: A positive idea or deterrent for visitors? Have your say in the comments section below
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