The Senedd has today voted to give councils the choice to
introduce a small visitor levy on overnight stays to raise and
reinvest vital funding into local tourism.
The landmark law – the Visitor Accommodation (Register and Levy)
Etc. (Wales) Bill – establishes the first local tax designed and
legislated for in Wales.
Councils will now have the option to introduce a levy on
overnight stays, which will raise money which can be re-invested
in tourism-related expenses – such as improving toilets,
footpaths, beaches, visitor centres and activities.
Finance Secretary said:
“Visitor levies are used successfully all over the world. They
ensure the pressures and opportunities tourism bring are balanced
fairly between visitors and residents. We want the same for
Wales.
“The levy is a small contribution that will make a big difference
to our communities, helping to maintain and enhance the very
attractions and services that make Wales such a wonderful place
to visit and live.
“By voting to back this measure, Wales is joining many other
worldwide destinations which already benefit from similar
levies.”
Key elements of the Bill include:
- Giving local authorities the choice to introduce a visitor
levy in their area, but only after consulting with their local
communities.
- Ensuring all funds raised are retained and reinvested back
into the local area to support tourism.
- The levy is set at 75p per person per night for adults
staying in hostels and campsites and at £1.30 per person per
night for all visitors staying in other types of accommodation.
- Under 18s are exempt from paying the levy when staying in
hostels or campsites.
- 2027 is the earliest possible introduction date.
The Bill also introduces a national statutory register for all
visitor accommodation providers in Wales. It will be free to join
and will provide valuable data and insight about the size and
scale of the sector across Wales.
The register will support ongoing policy development and
decision-making at all levels of government. It will also ensure
that the public are better informed about how property is being
used in their areas.
The Welsh Government is investing heavily in tourism, including a
£50m Wales Tourism Investment Fund and dedicated funding for
weather-proofing grants.
Notes to editors
Key Points: Visitor Accommodation (Register and Levy)
Etc. (Wales) Bill
- Local authorities will decide whether to introduce the levy
following consultation with their communities.
- Under-18s will not pay the levy when staying in hostels or
campsites.
- Visitor levies are common in tourism destinations worldwide.
- The Welsh Government is investing more than £70m in tourism
this financial year.
For more information visit: Visitor Accommodation (Register
and Levy) Etc. (Wales) Bill | GOV.WALES
What is it?
The Bill gives local authorities in Wales the option to introduce
a small visitor levy for overnight stays in their area, with all
funds reinvested locally to support tourism. It also establishes
a national register of visitor accommodation in Wales.
Main elements of the Bill:
- Local discretion: Local authorities can choose whether to
introduce the levy in their area, but only after consulting with
their local communities.
- Earliest implementation: Registration will start in autumn
2026 and the earliest a visitor levy can be introduced anywhere
in Wales is April 2027.
- The rate has been set at a low level compared to
international standards, and exemptions have been limited to
reduce complexity.
How much?
Two rates have been set:
- 75p per person per night for adults staying in hostels and
campsites.
- £1.30 per person per night for all visitors staying in all
other accommodation types.
Who collects the levy?
- It will be collected and managed by the Welsh Revenue
Authority (WRA).
- Providers will be responsible for paying the levy to the WRA.
It is likely they will pass this charge on to visitors as an
‘indirect tax'.
Who doesn't pay and are there exemptions?
- Under-18s are exempt when staying in hostels or campsites.
The levy will not be payable for stays in visitor accommodation
where the:
- Stay is longer than 31 days.
- The stay is at an individual's sole or main residence.
- The stay is for emergency or temporary housing arranged by
the local authority.
- If a stay is due to an emergency situation, visitors may be
able to seek a refund from the Welsh Revenue Authority. For
instance, if a visitor's home is uninhabitable due to fire or
flood.
- Disabled people who pay additional levy costs when
accompanied by a carer will also be able to claim a refund.
What happens to the money?
- All funds must be retained and reinvested in the local area
to support tourism infrastructure and services.
Why is it being introduced?
- To support sustainable tourism by generating additional funds
for local tourism infrastructure.
- To ensure visitors make a small contribution to the
facilities and services they use during their stay.
- To provide better data and intelligence through the national
accommodation register.
- To give local authorities more tools to manage tourism in
their areas.
When will this happen?
- The Bill was passed by the Senedd on 8 July 2025.
- The earliest a local authority could introduce any levy is
2027.
- Each local authority must conduct community consultation
before introducing a levy.
How does this compare internationally?
- Visitor levies are common around the world, including in many
popular tourism destinations across Europe.
- Revenue from similar models has made a significant impact on
protecting the environment, improving facilities, preserving
natural beauty whilst supporting their visitor economy, without
deterring tourism.
Costs
- Initial set-up costs will be covered by the Welsh Government
and local authorities' costs will be capped. Local authorities
will retain at least 90% of the revenues collected within their
jurisdictions.
- The Welsh Government will cover all administration costs
initially, with the WRA subsequently recouping a portion of these
costs from the revenue generated.
The Accommodation Register
-
What is it? A mandatory national register
of all visitor accommodation in Wales.
-
Cost to join: Free. There is no fee for
registration.
-
Purpose: Supports collection of the levy,
provides data for tourism planning, and helps local authorities
make better decisions.
