Visitors to Wales could start paying £1.30 extra per night after a landmark law was passed to allow Welsh councils to introduce a tourist tax.
The new law, named the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill, was passed by the Senedd on Tuesday, giving power to councils to introduce a levy on overnight stays.
The Welsh government stated that the money raised from the levy would be reinvested in tourism-related expenses, such as improving toilets, footpaths, beaches, visitor centres and other activities.
The law will not come into force immediately, as councils that want to apply the tax will need to go through a consultation process with their local communities, meaning the earliest possible introduction date will be in 2027.
The levy will be set at £1.30 per person per night when staying in various types of accommodation, including hotels and bed and breakfasts. This is 5p more than what was initially suggested when the bill was proposed back in November.
If visitors are camping or staying in a hostel in Wales, councils will only be able to charge 75p per person per night. The charge will also only be applicable is the visitor is over 18 years old.
The government said that the visitor levy rates have been set at a low level compared to other destinations worldwide, and exemptions have been limited to reduce complexity.
Finance secretary Mark Drakeford said upon the law’s passing: “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.”
Wales has followed Scotland in introducing a visitor levy law, after the Scottish Government passed its own act allowing councils to tax on overnight accommodation if they wish to do so.
Edinburgh became the first to vote in January to add a five per cent surcharge on visitors’ overnight stays by 2026.
Glasgow then followed, giving the green light to introduce a tourist tax on accommodation in its city by 2027.
English legislation does not allow cities to create a visitor levy; however, using legal workarounds has meant Liverpool and Manchester have introduced a form of tourism levy.
Tourism taxes have also been introduced in popular tourist destinations worldwide that have been impacted by overtourism, affecting natural landscapes and the lives of locals.
In April 2024, Venice became the first city in the world to charge admission for daytrippers and has continued the levy between April and July this year.
The €5 (£4.26) charge to enter the historic centre of Venice did little to deter visitors last year, but did bring in €2.4m for the city.
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