Legislation introduced to allow for visitor levy

Finance Secretary Mark Drakeford has announced the introduction of the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill, aiming to provide local authorities with the option to implement a small visitor levy to reinvest in local tourism.

The proposed legislation would see individuals staying overnight in Wales contributing a small charge towards supporting local tourism activities and infrastructure.

The new bill aligns with a key Programme for Government commitment and seeks to secure the future of Wales by having all overnight visitors contribute to preserving the country's beauty and heritage. If implemented across all Welsh local authorities, it is estimated the levy could generate up to £33 million annually.

The proposed levy rates under the bill are set at 75p per person per night for individuals staying in hostels and on campsite pitches, and £1.25 per person per night for those accommodated in other types of lodging.

Local authorities will have the autonomy to decide whether to introduce the visitor levy based on the needs of their communities. The earliest possible implementation date for the levy is projected to be 2027, following community consultations by the respective local authorities.

Visitor levies, successfully utilized in various global destinations such as Manchester, Greece, and Spain, are intended to bolster the local economy by safeguarding and investing in the infrastructure and services catering to visitors.

Finance Secretary Mark Drakeford stressed the importance of fairness in the proposed bill, stating, "We believe it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience."

He added, "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 anticipated to commence operation in 2026 to facilitate the collection and administration of the visitor levy and enhance sector understanding for future policy decisions.