The Welsh Government is to unveil plans for a new tourist tax that would have to be paid by anyone from outside the country staying in Wales overnight. The plans being announced on Monday would give local authorities in Wales the power to add an additional charge to accommodation bills.
Ministers say the tax would raise money to support the tourism industry but opponents say it will put visitors off. Local councils will decide whether to impose the tax in their areas.
The Visitor Accommodation Bill, first proposed by Labour and Plaid Cymru in 2021, will include a registration scheme for accommodation providers. It will have to be approved by the Senedd and it could take years before coming into force.
There will also be rules forcing all accommodation providers to meet set standards.
Most business that have responded to consultation on the new regulations and tax have opposed them, with concerns about different counties competing against each other by setting different rates.
Finance Secretary Mark Drakeford said: “This is a bill designed to protect and promote tourism. It’s a power for those local authorities that wish to use it that will collect a small amount of money from visitors coming to that area for re-investment in the things that make tourism a success in that area.”
Many countries around the world implement tourist taxes, primarily to offset the impacts of tourism on infrastructure, the environment, or cultural heritage. Austria, France, Italy, and Spain apply nightly taxes that vary by region or accommodation type. Paris recently increased its tax to €3–€17 per night depending on the type of accommodation.
Germany, Belgium, Netherlands, and Greece charge taxes based on hotel cost or star rating, often ranging from €1–€5 per night. Iceland recently reintroduced a fee between $2–$7 per night to protect natural areas.
Japan has a departure tax of about $8., Indonesia (Bali) implemented a $10 entry fee in 2024 for conservation efforts., Bhutan imposes a Sustainable Development Fee, currently $100 daily, covering various services. Many Caribbean islands charge a tax that varies from $14–$48, either as a nightly fee or part of departure costs.
The U.S. requires an ESTA fee ($21) for eligible visitors. New Zealand charges an International Visitor Conservation and Tourism Levy of about $22 upon arrival. Australia is introducing a similar fee in specific regions. Some African safari destinations include conservation fees in their pricing.
Many other countries, including Malaysia, Croatia, Portugal, and Switzerland, have smaller nightly taxes.
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