A Bill to give local authorities the option to introduce a small
visitor levy in their area to re-invest in local tourism, is
today introduced by Finance Secretary .
The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill
proposes that people staying overnight in Wales and enjoying
everything the country has to offer will pay a small charge. The
money raised will support local tourism activity and
infrastructure.
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.
It would provide local communities the opportunity to generate
additional revenues. 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 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, Netherlands, Spain,
Portugal and California. The funds raised are used to support a
healthy visitor economy by protecting and investing in the
infrastructure and services guests enjoy.
Finance Secretary said:
“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.
“Money raised through a levy would be retained by local
authorities and re-invested back into their local areas to
support local, sustainable tourism. 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,
where they are operating, and how they are operating, and help
establish a better understanding of the sector and support future
policy decisions at a local and national level.
Councillor Andrew Morgan OBE, WLGA Leader, said:
"This Bill will give councils the option to introduce a visitor
levy on overnight stays. It's a way to raise extra funds to
support local services and improve amenities that benefit both
visitors and the community.
“Each council will decide how to apply the levy based on what's
best for their area, recognising that it may be suitable in some
parts of Wales but not in others. Councils will carefully
consider local circumstances and ensure residents are consulted
before any decisions are made.
“We're glad to have worked closely with the Welsh Government on
this and look forward to seeing the draft legislation in the
coming weeks, which will mark an important step forward for
Wales' tourism and local economies.”
Notes to editors
Wales is not alone in the UK in considering a visitor levy:
- Manchester was the first in the UK to introduce levy. A City
Visitor Charge of £1 person per night was introduced in April
2023. It is charged by 73 hotels in the city centre and raised
£2.8m in its first year to support new events.
- The Scottish Government has consulted on its plans for a
Visitor Levy (Scotland) Act, which would introduce a levy based
on a percentage of the accommodation cost, with each rate left to
individual councils. Edinburgh is on track to introduce a 5% levy
on rooms in 2026.
- Bath, Liverpool, Edinburgh, Birmingham and London have all
explored the idea of introducing a tourism tax.
