There are around 60 destinations around the world that charge tourist taxes – small fees usually levied indirectly through accommodation providers or holiday companies and is typically aimed at overnight visitors.
Wales has made the decision to follow suit. Proposals for a law that could see visitors having to pay a tax is making its way through the Welsh Parliament this month.
The Welsh Government will be granting power to councils who will charge overnight visitors a levy.
The plans also include a national register of all people who provide accommodation to holidaymakers in the country.
In a statement, the Welsh Government said the “Visitor Accommodation (Register and Levy) Etc. (Wales) Bill” will move forward in the Senedd on November 25.
The exact amount the visitor levy will be has yet to be decided, however in the UK and in Europe, tourist tax usually amounts to a few pounds per night.
In Manchester, the City Visitor Charge is £1 per room, per night, plus VAT.
The Welsh Government also indicated there would be a cap on the number of nights for which a visitor levy would apply.
The proposals have been in the woodworks since 2022 and it is now likely to come to fruition as early as 2027.
The Welsh Government previously stated their hopes that the tax can help “foster a sense of shared responsibility between residents and visitors” with the money being raised from it helping to “develop sustainable tourism” among local areas.
Revenue for this tourist tax has been forecasted to be in the region of £14.2 million for a tax of 50p to £113.2 million for a tax of £4, according to studies.
A statement by the Finance Secretary Mark Drakeford and Economy Secretary Rebecca Evans stated the levy and registration bill is set to be introduced to the Senedd on November 26.
They added: “The levy will raise additional funds for local authorities to support the long-term sustainability of our tourism industry.”
“Each local authority will be able to decide whether to introduce a visitor levy in its area, based on local circumstances.”
Not all are pleased about this bill being introduced into Wales with many worried it will put visitors off and could risk jobs.
“We’ve been absolutely clear from the start that this policy is the wrong one for Wales,” explained Andrew RT Davies, leader of the Welsh Conservatives in the Senedd.
“A tourism tax will risk jobs at a time when businesses are being clobbered by Labour, it will impose red tape.
“Our tourism industry should be nurtured by the Welsh government, not hamstrung by new taxes.”
