The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill gives local authorities the choice to introduce a levy on overnight stays in visitor accommodation to raise funds for local tourism.
Local authorities will decide whether to introduce a visitor levy after consulting with their communities. It will be a per person per night charge and the levy would apply to all visitors regardless of where they have travelled from.
Where a visitor levy has been introduced, the levy rate is a per person per night charge on overnight accommodation, set as 75p per person per night for those staying at campsites and hostels, excluding people under 18.
Pubs responsible for paying levy
What is the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill?
- The levy is Wales' first locally-designed tax. It aims to enable councils to invest proceeds in tourism infrastucture such as toilets, footpaths, beaches and visitor centres.
- Local authorities will have the power to decide whether to introduce a visitor levy.
- It will be a per person, per night charge, applying to overnight stays in visitor accommodation.
- The levy would apply to all visitors, regardless of where they have travelled from.
- The rate, which would be the same nationally to ensure consistency, would be set as 75p per person, per night for those staying at campsites and hostels, excluding those under 18 while it is £1.30 per person, per night for those staying in all other visitor accommodation types (for all ages).
- Providers, such as pubs, would be responsible for paying the levy and it is collected and managed by the Welsh Revenue Authority.
- It will not be payable for stays in visitor accommodation wherethe stay is longer than 31 days, is at an individual's sole or main residence or if it is for emergency or temporary housing arranged bythe local authority.
- The Welsh Government estimated if all local authorities introduced the levy, it could generate up to £33m a year across Wales.
The rates are £1.30 per person per night for those staying in all other visitor accommodation types (all ages). These rates may be further adjusted during the continued Senedd scrutiny process.
Pubs will be responsible for paying the levy, which they can pass onto visitors as an ‘indirect tax’. It will be collected and managed by the Welsh Revenue Authority (WRA).
The Welsh Senedd said it could generate up to £33m a year across Wales.
Royal Assent is expected to take place in August 2025 and the earliest a local authority could introduce a levy is 2027.
As part of the plans there will also be a registration of all visitor accommodation providers in Wales to start in 2026.
Reduce visitors
UKHospitality Cymru executive director David Chapman said: “The Visitor Levy will reduce visitors to Wales, spend in our local economies and growth in the sector. Fewer low income Welsh families will be able to afford to holiday in their own country.
“We would urge local authorities to take due care and consideration about the impact on hospitality, tourism and leisure businesses and jobs before embarking on introducing a levy. And we’re calling for every penny raised to be ringfenced and reinvested into the visitor economy.”
He said it was now “critical” that the Welsh Government does not compound the “severe challenges” facing the sector by going ahead with its proposed business rates reform that excludes hospitality, at present.
“We’re calling for it to urgently revisit the proposals and ensure hospitality businesses are able to benefit from lower business rates bills, after paying significantly more than their fair share for decades,” he added.
