Visitor Levy bill clears final hurdle in the Senedd
Visitor Levy bill clears final hurdle in the Senedd
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The bill, which would give councils the power to impose a visitor levy on all people staying in tourist accommodation in Wales, has passed the amendment stage in the Senedd, meaning members no longer have an opportunity to change the law, which is set to come into effect from 2027 at the earliest.
The legislation has already been amended to allow under-18s to stay in hostels or campsites without having to pay the charge.
The Welsh Government says it is supporting the tourism industry in other ways, including investing more than £70 million this year.
Where a visitor levy has been introduced, the levy rate is a per person per night charge on overnight accommodation, set as:
- £0.75 per person per night for those staying at campsites (pitches) and hostels, excluding people under the age of 18
- £1.30 per person per night for those staying in all other visitor accommodation types (all ages)
The levy will not be payable for stays in visitor accommodation where the:
- Stay is longer than 31 days
- Stay is at an individual’s sole or main residence
- The stay is for emergency or temporary housing arranged by the local authority
Speaking ahead of the debate, Finance Secretary Mark Drakeford said: “The visitor levy is a small contribution that could make a big difference if councils choose to introduce it in their local areas. We think it is 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.”
In an interview with Businessin Wales last month, the Welsh Government’s Finance Cabinet Secretary, Mark Drakeford, defended the policy, saying it would “sustain Welsh tourism”.
“If [councils] do [introduce it], then a very modest amount of money will be added to the bill of people staying in hotels or other parts of the tourism accommodation sector,” said Drakeford. “That money will be collected and used by local authorities to reinvest in the conditions that make tourism a success here in Wales.”
Drakeford argued that the levy offers a way for visitors to contribute to the public infrastructure and amenities that make destinations attractive in the first place, noting that the cost would be minimal: “less than the price of a cup of tea, less than the price of a sausage roll;” he said.
“The levy is about helping to sustain the industry on the one hand,” he added, “and asking visitors to make a small contribution to the costs that are inevitably incurred when you’re providing facilities to make an area welcoming.”
Addressing some of the criticism and concerns raised by tourism businesses and local residents, Drakeford acknowledged that “change is always difficult” and that “people are often anxious about things they haven’t faced before.”
Drakeford insisted the measure would strengthen tourism over the long term, especially considering the challenges brought on by the COVID-19 pandemic. “Our scheme will underpin the industry for the future and make sure that it can continue to be a success story.”
“I think in practice, those anxieties will be very quickly allayed. We want people to continue to visit Wales, to go on holiday inside Wales, and then to make that very small contribution,” he said. “Businesses will soon get used to it, and I think it will become part of the way we sustain the ecosystem of a very successful industry.”
Also speaking ahead of the debate, Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: “Labour and Plaid’s toxic Tourism Tax will devastate the sector; it must be axed.
“The Welsh Labour Government’s own figures project up to £576 million in economic damage over the next decade and hundreds of potential job losses annually as a result of their so-called ‘visitor levy’, which enjoys full support from Plaid Cymru and the Lib Dems.
“Welsh Conservatives are clear: we will be voting against this act of economic self-harm today, because the sector deserves to be supported not hit with a new tax.”
