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Cabinet Secretary for Finance and Welsh Language - Mark Drakeford
Finance

Visitor levy to support tourism becomes law

Ardoll ymwelwyr i gefnogi twristiaeth yn dod yn gyfraith

The Visitor Levy Bill has received Royal Assent from His Majesty The King.

The new law gives Welsh councils the choice to introduce a small charge on overnight stays, with all funds reinvested locally to support tourism.

Councils will decide how money raised can be used for tourism-related expenses – such as improving toilets, footpaths, beaches, visitor centres and activities. The Welsh Revenue Authority (WRA) will collect and manage the levy for councils.

The law also creates a national register for all visitor accommodation providers operating in Wales, which will be run by the WRA. This will provide better data about tourism to help councils, the Welsh Government and communities make informed decisions about how properties are used in their areas.

There is no cost to register and, from Autumn 2026, anyone charging visitors to stay overnight in Wales must sign-up.

But the earliest possible date a levy could be introduced by councils opting to do so would be 2027.

Finance Secretary Mark Drakeford said:

“The visitor levy represents a small contribution that will make a big difference by helping to maintain and enhance the very attractions that make Wales such a wonderful place to visit and live.

“This historic legislation gives Wales the same tools used so successfully by destinations all over the world to balance the benefits and pressures of tourism between visitors and residents.”

Rebecca Godfrey, interim chief executive of the Welsh Revenue Authority said:

“We’re delighted to support local authorities with the collection of the levy and implement the new visitor accommodation register.

“Our proven track record managing Wales’ devolved taxes means we are well positioned to administer the register and levy efficiently. We’ll work with providers and the industry to help everyone prepare for autumn 2026.”

The new law:

  • Gives councils the choice to introduce a visitor levy after consulting local communities.
  • Ensures funds are retained and reinvested locally to support tourism.
  • Sets the levy at 75p per person per night for hostels/campsites and £1.30 for other accommodation.

Exempts under 18s in shared accommodation.

Notes to editors

  • The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was passed by the Senedd on 8 July 2025, and became an Act on 18 September 2025.
  • Local authorities will decide whether to introduce the levy following consultation with their communities.
  • Under-18s will not pay the levy when staying in shared accommodation such as hostels or campsite pitches.
  • 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      

About the Welsh Revenue Authority (WRA):

  • The Welsh Revenue Authority(WRA) manages two devolved taxes designed and made for Wales to help fund Welsh public services. Land Transaction Tax (LTT) – the Welsh stamp duty land tax – and Landfill Disposals Tax (LDT). The taxes replaced stamp duty land tax and landfill tax, respectively in Wales, from 1 April 2018.  
  • The WRA was established by the Welsh Government in October 2017, as a result of the introduction of the Tax Collection and Management (Wales) Act 2016. The WRA is the first non-ministerial department to be formed within the Welsh Government.  
  • The revenue the WRA administers is directly used to help fund public services in Wales.   

Notes for media

Key Points: Visitor Accommodation (Register and Levy) Etc. (Wales) Act

What is it?

The Act 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 Act:

  • 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?

  • A visitor levy could potentially raise £33m across Wales for tourism if all local authorities choose to introduce one in their area.
  • Funds must be retained and reinvested in the local area to support tourism infrastructure and services.
  • Local authorities must use levy revenue transparently and report each year on how it has been invested on local tourism.

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 and became an Act on 18 September 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.
  • The proposed levy is lower on average than similar charges which are applied in European destinations.
  • 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. Visitor accommodation providers are required to register, regardless of whether a local council implements a visitor levy in their area.