£1.30-a-night Welsh 'tourist tax' given green light

Councils in Wales will be given the power to introduce a tax on overnight visitor stays after plans were voted through in the Senedd.

 

Guests staying in hotels will be charged an extra £1.30 per person per night, while those staying in hostels and campsites will face a fee of 75p per person per night.

 

The bill is expected to gain royal assent in August and the earliest a council could introduce a levy is in 2027.

 

Money raised by the tax will be used to fund tourism-related expenses such as improving toilets, footpaths, beaches and visitor centres.

 

The Welsh government said the plan could raise up to £33m a year across Wales if all local councils signed up.

 

But the proposals have faced opposition from hospitality businesses, who are concerned extra costs could deter people from visiting Wales.

 

The Welsh Tourism Alliance said it was "disappointed" with the plans, which it claimed could add more than £35 a week to accommodation costs for a family of four.

 

The Welsh Conservatives have pledged to axe the tax if the party wins the 2026 Senedd election.

 

Councils will need to approve the levy and consult with residents before a tax can be introduced in their area. Local authorities in Cardiff and Anglesey have indicated they plan to do so, but others have ruled it out.

 

Under 18s are exempt from paying the levy when staying in hostels or campsites following concerns it could deter parents from paying for children going on school trips.

 

The bill will also see the launch of a national statutory register of all visitor accommodation providers in Wales, which will be free to join.

 

Finance secretary Mark Drakeford said: “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.”

 

Similar overnight charges are already used in European tourist destinations including Berlin and Amsterdam, but they have been subject to fierce debate in the UK.

 

Scottish councils will be given the power to introduce an overnight levy from 2026, with Edinburgh set to launch a tax of 5% plus VAT on the total cost of their accommodation.

 

Manchester and Liverpool have both introduced their own version of an overnight tax, charging £1 and £2 a night respectively to fund local Business Improvement Districts (BIDs).

 

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