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PRIVACY
Economic Development

New tourism tax in Wales set to become law

The Senedd has passed plans for a tourism tax

A tourism tax for Wales has been approved.(Image: Ben Birchall/PA Wire)


The Senedd passed plans for a £1.30-a-night tourism tax in parts of Wales from 2027.

Senedd members voted 37-13 for the tourism tax which will see people charged £1.30 each, plus VAT, for stays in hotels, B&Bs and self-catering accommodation.

People staying in hostels and campsites would pay 75p per person per night, with under 18s exempt from the lower rate of the tax which would be introduced in 2027 at the earliest.

The tax would raise around £33m a year if implemented across the country but the 22 councils in Wales will be given powers to decide whether to introduce a levy locally.

Only two councils, Cardiff and Anglesey, – have so far plans to bring in a levy but other authorities had yet to make a decision or had “no plans” to introduce a tax.

A register of visitor accommodation providers operating in Wales will also be established by the bill, laying the groundwork for licensing plans set to be brought forward separately.

Proponents argue the levy will ensure visitors contribute to the cost of services with revenue reinvested, while detractors warn the tax will put tourists off and damage Wales’ economy.

Tourism taxes are commonplace on the continent and, closer to home, Scottish councils will gain similar powers next year and Manchester introduced a visitor charge in 2023.