Wales to Introduce £1.25 Nightly Tourism Tax by 2027
Proposed levy aimed at funding tourism-related services faces controversy
The Welsh government has proposed a £1.25 per night tourism tax starting in 2027, which would apply to guests at hotels, B&Bs, and self-catered accommodations.
This levy, charged per person per night and inclusive of children, aims to generate an estimated £33 million annually to fund services in tourism hotspots.
A reduced rate of 75p is set for hostels and campsites.
The tax proposal, requiring legislative approval from the Welsh Parliament, arises from a 2021 cooperation deal between Labour and Plaid Cymru.
Critics, including Welsh Conservatives, argue the levy could deter visitors and harm the tourism sector, which employs around 159,000 people.
Katherine John, a local business owner in Tenby, and Rob Izzard, an operator of a glamping site and alpaca trekking venture, expressed concerns about the potential impact on local businesses.
Additional legislation for a licensing scheme for accommodation providers is anticipated before the next Senedd election in 2026.
Cardiff is considering similar fiscal measures.
The Wales Tourism Alliance criticized the lack of a clear commitment to improving the visitor experience with the funds, while Finance Secretary Mark Drakeford stated that the levy would support local infrastructure and global precedents exist.
The levy would not apply to stays over 31 nights, those in temporary or homeless accommodations, or force temporary price adjustments, as voiced by Helen Manley Jones, a cottage leaser in Newport.
This levy, charged per person per night and inclusive of children, aims to generate an estimated £33 million annually to fund services in tourism hotspots.
A reduced rate of 75p is set for hostels and campsites.
The tax proposal, requiring legislative approval from the Welsh Parliament, arises from a 2021 cooperation deal between Labour and Plaid Cymru.
Critics, including Welsh Conservatives, argue the levy could deter visitors and harm the tourism sector, which employs around 159,000 people.
Katherine John, a local business owner in Tenby, and Rob Izzard, an operator of a glamping site and alpaca trekking venture, expressed concerns about the potential impact on local businesses.
Additional legislation for a licensing scheme for accommodation providers is anticipated before the next Senedd election in 2026.
Cardiff is considering similar fiscal measures.
The Wales Tourism Alliance criticized the lack of a clear commitment to improving the visitor experience with the funds, while Finance Secretary Mark Drakeford stated that the levy would support local infrastructure and global precedents exist.
The levy would not apply to stays over 31 nights, those in temporary or homeless accommodations, or force temporary price adjustments, as voiced by Helen Manley Jones, a cottage leaser in Newport.
