Tourists staying at hotels, B&Bs and self-catered accommodation in Wales could be charged an extra £1.25 from 2027 if the Welsh Labour government’s plan goes ahead.
Those staying at campsites and hostels would be charged the lower rate of 75p, with funds going towards maintaining tourist hotspots.
But critics of the tourist tax, which has already been introduced in busy cities around the world including Venice and Barcelona, say it could cripple the country’s visitor economy.
One angry tourist holidaying in Pembrokeshire told the BBC’s News at Six that he thought it was a “terrible” policy, adding: “They are after our money!”
While other visitors told the programme that they wouldn’t be put off by having to pay a little extra for their staycation trips, business owners in Wales also sounded the alarm over the impact of a loss of footfall on their trade.
“It’s giving the impression that we don’t want people to come in,” Helen Manley-Jones, who lets out her self-catering cottage on the Pembrokeshire coast, said.
“It’s almost as if to say, you’ve really got to pay a lot to come and see us, to come and enjoy the countryside and what we offer.”
Rob Izzard, who runs a glamping site and alpaca trekking trips on his farm in the region, also suggested that even a minor hike in costs could push holidaymakers to go elsewhere on their breaks.
It will be up to councils whether they introduce the visitor levy, but it is estimated the move would raise around £33 million per year.
A decision on whether to introduce the measures, which are also being brought in in Scotland through the Visitor Levy Bill, is not expected until next year and wouldn’t be enforced until at least 2026.
Labour’s planned levy could cost holidaying families up to £60 a week, Conservative Senedd MS for Monmouth Peter Fox told the Senedd last month.
“We talk about it being minimal, but £1.25 a night – so, a family with four children staying in a guesthouse would have to budget for around £52.50,” Mr Fox said.
“If that business is VAT registered, it will have to charge the VAT on top and that will take it to over £60 for a seven-day break. I would suggest that could stop visitors deciding to holiday in Wales.”
But Finance Secretary Mark Drakeford told the BBC that it is only fair visitors “contribute towards local facilities, helping to fund infrastructure and services integral to their experience”.
“Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales,” he added.
