Wales plan to start tourism tax

Visitors to Wales may soon face a tourism tax when staying overnight, as the Welsh government plans to give local councils the authority to impose a “small additional charge” on accommodation bills. Details, including the exact amount of the proposed levy, will be revealed when the legislation, the Visitor Accommodation Bill, is formally published.

Purpose and Implementation
Ministers argue the levy is intended to raise funds for improving tourism infrastructure in popular destinations. The revenue could be used for initiatives such as beach cleaning, maintaining public toilets, and repairing footpaths. Councils will have the discretion to decide whether to introduce the tax, based on local needs and circumstances.

The legislation also proposes a registration scheme for accommodation providers, ensuring they adhere to consistent standards. A separate licensing scheme for providers is anticipated under different legislation.

Political and Public Reactions
The proposal stems from a 2021 agreement between Labour and Plaid Cymru. However, it has faced criticism from the Conservatives, who warn it could deter visitors. Finance Secretary Mark Drakeford countered that the measure is aimed at protecting and promoting tourism by reinvesting in local attractions.

A consultation conducted by the Welsh government revealed resistance from most businesses, with concerns about administrative challenges and competition between counties with varying tax rates. However, a government-commissioned UK-wide survey showed more positive than negative responses to the idea of paying a levy while on holiday.

Next Steps
The bill must be approved by the Senedd before councils can implement the tax, which could take several years. If passed, it would mark a significant shift in how Wales funds and supports its tourism industry.