Senedd passes legislation to support the future of tourism in Wales
Y Senedd yn pasio deddfwriaeth i gefnogi dyfodol twristiaeth yng Nghymru
The Senedd has today voted to give councils the choice to introduce a small visitor levy on overnight stays to raise and reinvest vital funding into local tourism.
The landmark law – the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill – establishes the first local tax designed and legislated for in Wales.
Councils will now have the option to introduce a levy on overnight stays, which will raise money which can be re-invested in tourism-related expenses – such as improving toilets, footpaths, beaches, visitor centres and activities.
Finance Secretary Mark Drakeford said:
“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.”
Key elements of the Bill include:
- Giving local authorities the choice to introduce a visitor levy in their area, but only after consulting with their local communities.
- Ensuring all funds raised are retained and reinvested back into the local area to support tourism.
- The levy is set at 75p per person per night for adults staying in hostels and campsites and at £1.30 per person per night for all visitors staying in other types of accommodation.
- Under 18s are exempt from paying the levy when staying in hostels or campsites.
- 2027 is the earliest possible introduction date.
The Bill also introduces a national statutory register for all visitor accommodation providers in Wales. It will be free to join and will provide valuable data and insight about the size and scale of the sector across Wales.
The register will support ongoing policy development and decision-making at all levels of government. It will also ensure that the public are better informed about how property is being used in their areas.
The Welsh Government is investing heavily in tourism, including a £50m Wales Tourism Investment Fund and dedicated funding for weather-proofing grants.
Notes to editors
Key Points: Visitor Accommodation (Register and Levy) Etc. (Wales) Bill
- Local authorities will decide whether to introduce the levy following consultation with their communities.
- Under-18s will not pay the levy when staying in hostels or campsites.
- Visitor levies are common in tourism destinations worldwide.
- The Welsh Government is investing more than £70m in tourism this financial year.
For more information visit: Visitor Accommodation (Register and Levy) Etc. (Wales) Bill | GOV.WALES
What is it?
The Bill gives local authorities in Wales the option to introduce a small visitor levy for overnight stays in their area, with all funds reinvested locally to support tourism. It also establishes a national register of visitor accommodation in Wales.
Main elements of the Bill:
- Local discretion: Local authorities can choose whether to introduce the levy in their area, but only after consulting with their local communities.
- Earliest implementation: Registration will start in autumn 2026 and the earliest a visitor levy can be introduced anywhere in Wales is April 2027.
- The rate has been set at a low level compared to international standards, and exemptions have been limited to reduce complexity.
How much?
Two rates have been set:
- 75p per person per night for adults staying in hostels and campsites.
- £1.30 per person per night for all visitors staying in all other accommodation types.
Who collects the levy?
- It will be collected and managed by the Welsh Revenue Authority (WRA).
- Providers will be responsible for paying the levy to the WRA. It is likely they will pass this charge on to visitors as an ‘indirect tax’.
Who doesn't pay and are there exemptions?
- Under-18s are exempt when staying in hostels or campsites.
The levy will not be payable for stays in visitor accommodation where the:
- Stay is longer than 31 days.
- The stay is at an individual’s sole or main residence.
- The stay is for emergency or temporary housing arranged by the local authority.
- If a stay is due to an emergency situation, visitors may be able to seek a refund from the Welsh Revenue Authority. For instance, if a visitor's home is uninhabitable due to fire or flood.
- Disabled people who pay additional levy costs when accompanied by a carer will also be able to claim a refund.
What happens to the money?
- All funds must be retained and reinvested in the local area to support tourism infrastructure and services.
Why is it being introduced?
- To support sustainable tourism by generating additional funds for local tourism infrastructure.
- To ensure visitors make a small contribution to the facilities and services they use during their stay.
- To provide better data and intelligence through the national accommodation register.
- To give local authorities more tools to manage tourism in their areas.
When will this happen?
- The Bill was passed by the Senedd on 8 July 2025.
- The earliest a local authority could introduce any levy is 2027.
- Each local authority must conduct community consultation before introducing a levy.
How does this compare internationally?
- Visitor levies are common around the world, including in many popular tourism destinations across Europe.
- Revenue from similar models has made a significant impact on protecting the environment, improving facilities, preserving natural beauty whilst supporting their visitor economy, without deterring tourism.
Costs
- Initial set-up costs will be covered by the Welsh Government and local authorities' costs will be capped. Local authorities will retain at least 90% of the revenues collected within their jurisdictions.
- The Welsh Government will cover all administration costs initially, with the WRA subsequently recouping a portion of these costs from the revenue generated.
The Accommodation Register
- What is it? A mandatory national register of all visitor accommodation in Wales.
- Cost to join: Free. There is no fee for registration.
- Purpose: Supports collection of the levy, provides data for tourism planning, and helps local authorities make better decisions.