“A small contribution that could make a big difference” – Legislation introduced to support a thriving, sustainable tourism industry in Wales

A Bill to give local authorities the option to introduce a small visitor levy in their area to re-invest in local tourism, is today introduced by Finance Secretary Mark Drakeford.

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill proposes that people staying overnight in Wales and enjoying everything the country has to offer will pay a small charge. The money raised will support local tourism activity and infrastructure.

The introduction of the legislation marks the delivery of a key Programme for Government commitment and will help to invest in the future of Wales as all visitors staying overnight would contribute to the preservation of the country’s beauty and heritage.

It would provide local communities the opportunity to generate additional revenues. If all Welsh local authorities choose to introduce a visitor levy, it is estimated it could generate up to £33m a year.

The levy would be set at:

• 75p per person per night for people staying in hostels and on campsite pitches.
• £1.25 per person per night for those staying in all other accommodation types.

The legislation also includes a requirement to establish and maintain a register of visitor accommodation in Wales, which would – for the first time – provide a register of the broad range of visitor accommodation available across the country.

Local authorities will decide if they want to introduce a levy in their area, based on what is best for their communities. It is estimated the earliest this could happen is 2027 after a local authority has consulted their community.

Visitor levies are used successfully in many parts of the world, including Manchester, Greece, Germany, Netherlands, Spain, Portugal and California. The funds raised are used to support a healthy visitor economy by protecting and investing in the infrastructure and services guests enjoy.

Finance Secretary Mark Drakeford said:

“This Bill is rooted in the principle of fairness. We know tourism makes an important contribution to the Welsh economy and to Welsh life. We want to ensure its long-term sustainability.

“That’s why we believe 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.

“Money raised through a levy would be retained by local authorities and re-invested back into their local areas to support local, sustainable tourism. It’s a small contribution that could make a big difference.”

A statutory registration scheme for all accommodation providers is expected to start operating in 2026 to support the collection and administration of a visitor levy.

It will include details about who is operating in the sector, where they are operating, and how they are operating, and help establish a better understanding of the sector and support future policy decisions at a local and national level.

Councillor Andrew Morgan OBE, WLGA Leader, said:

“This Bill will give councils the option to introduce a visitor levy on overnight stays. It’s a way to raise extra funds to support local services and improve amenities that benefit both visitors and the community.

“Each council will decide how to apply the levy based on what’s best for their area, recognising that it may be suitable in some parts of Wales but not in others. Councils will carefully consider local circumstances and ensure residents are consulted before any decisions are made.

“We’re glad to have worked closely with the Welsh Government on this and look forward to seeing the draft legislation in the coming weeks, which will mark an important step forward for Wales’ tourism and local economies.”