The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was approved by 37 votes to 13, paving the way for a £1.30 per person per night charge on hotel, B&B and self-catering stays, plus VAT. A reduced rate of 75p will apply to hostels and campsites, with under-18s exempt from the lower rate.
The Welsh Government says the levy will help fund improvements to local tourism infrastructure, including toilets, footpaths, beaches and visitor centres, with all revenue reinvested in the communities where it is raised.
Finance Secretary Mark Drakeford described the measure as a “small contribution that will make a big difference,” adding:
“Visitor levies are used successfully all over the world… We want the same for Wales.”
The bill also establishes a national register of visitor accommodation providers, laying the groundwork for future licensing and offering better data on the sector’s scale and impact.
If implemented across all 22 Welsh councils, the levy could raise £33 million annually, though only Cardiff and Anglesey have so far indicated plans to adopt it. Other councils are expected to consult locally before making a decision.
The move follows Swansea Bay News’ earlier coverage of the debate surrounding the tax, which has divided opinion across the tourism sector and political spectrum. Critics warn the levy could deter visitors and harm the economy, particularly in rural areas reliant on seasonal trade.
Sam Rowlands, Conservative shadow finance secretary, called the bill “bad for Wales and bad for the Welsh tourism sector,” citing industry concerns and potential job losses.
But supporters argue the measure will help balance the pressures of tourism with the needs of residents. Plaid Cymru’s Luke Fletcher said:
“There is a genuine opportunity here for us to create a sustainable tourism sector that works with both our communities and businesses.”
Labour’s Jenny Rathbone added:
“Why should poor people rather than visitors have to pay?”
The legislation marks the first locally designed tax in Wales for over 500 years, and comes as part of the Welsh Government’s broader investment in tourism, including a £50m Wales Tourism Investment Fund and new weather-proofing grants.
For more background on the debate, see our earlier report: Will it support tourism or devastate the sector?
