Tourism Bill brief to Members of the Senedd
This week, CLA Cymru has sent a detailed briefing to Members of the Senedd outlining our strong opposition to the proposed Tourism (Visitor Levy) Bill. If passed, this legislation would introduce a new visitor tax on overnight stays in Wales, a move that could seriously harm the rural economy.
The importance of the Tourism Industry to rural Wales
Tourism is a vital part of Wales’ rural economy, providing essential income for thousands of businesses. In 2022, UK residents made approximately 9 million overnight trips to Wales, with 87 million day visits contributing further to local economies. Tourism-related industries account for 11.8% of employment in Wales, with 77% of these jobs in hospitality.
Farming plays a key role in Welsh tourism, with around 3,000 farm businesses having diversified into tourism, offering accommodation, camping, farm experiences, and event hosting. The success of these enterprises depends on Wales remaining a competitive and attractive destination for visitors.
Despite this, the Welsh Government’s proposed Tourism (Visitor Levy) Bill introduces a tax on overnight stays, a move that risks discouraging visitors, reducing overnight spending, and harming small businesses.
The Tourism Levy and why CLA Cymru sent a brief to MSs
The proposed Tourism (Visitor Levy) Bill would introduce a tax on overnight stays in Wales, requiring visitors to pay an additional charge when booking accommodation such as hotels, B&Bs, and holiday lets. The levy, which would be set and collected by local authorities, aims to generate funding for local tourism services. However, concerns have been raised about its potential impact on visitor numbers, rural businesses, and Wales’ competitiveness as a tourist destination, particularly compared to other parts of the UK where no such tax exists.
Last week, CLA Cymru sent a briefing to Members of the Senedd outlining its opposition to the Tourism Levy.
Key Concerns We Raised
Our briefing highlights four major risks posed by the Bill:
1. Economic Damage & Declining Visitor Numbers
- The Welsh Government predicts only a 1.6% drop in visitors, but even this could cost the industry £40 million.
- Visitors may choose to stay in England, making day trips into Wales rather than spending money on accommodation, food, and local attractions.
- Overnight visitors spend four times more than day-trippers (£184 per trip vs. £42). If fewer people stay overnight, rural businesses will suffer.
2. Small Businesses Will Bear the Burden
- The levy treats small, independent accommodation providers the same as large hotel chains, creating an unfair playing field.
- The threshold for paying the tax is too low (£1,000 in revenue). This means even tiny B&Bs and farm stays will be caught up in extra bureaucracy.
- Businesses will have to spend more on admin, software, and training just to comply.
3. The Levy is Too Broad & Disproportionate
- Children and infants are included in the tax – despite their negligible impact on infrastructure.
- Business travellers, who bring investment to Wales, will also be taxed, potentially reducing conference and corporate travel.
- Even Welsh residents could be charged, encouraging more people to holiday elsewhere instead.
4. The Policy Lacks Clear Evidence
One of our biggest concerns is that the Welsh Government does not have enough data to justify this policy.
Professor Calvin Jones, who authored the Welsh Government’s own Economic Impact Assessment, has admitted that:
"The Welsh Government knows very little about how the tourism economy in Wales works.”
He also told the Finance Committee:
"It’s a very uncomfortable place for Senedd Members to be when they’re trying to make policy or audit policy on tourism.”
"The Tourism Levy risks making Wales an uncompetitive destination, particularly when visitors can choose to travel elsewhere in the UK without facing this charge. The lack of a clear evidence base behind this Bill is deeply concerning, and we urge the Welsh Government to reconsider its approach before pushing forward with policies that could force rural businesses to close."
What Needs to Happen Next?
The visitor economy supports a diverse range of businesses in Wales, from holiday cottages and B&Bs to farm stays and outdoor activity providers. Given the financial pressures on rural businesses, now is not the time to introduce additional costs and uncertainty. Particularly noting the already substantial pressures from all sides, including BPR, 182 day rules, planning, National Parks and Article 4 in Pembrokeshire.
The Welsh Government must address key concerns before proceeding with the Bill:
- Will small rural businesses receive support to manage the administrative and financial burden?
- Will the levy be applied consistently across Wales, or will local authorities set different rates, creating a postcode lottery?
- How will premium rate charges be set, and will they align with the economic needs of each region?
- Where will the money go? How much of the revenue will be reinvested in tourism services?
Introducing a tourism levy without clear evidence and proper consideration of its impact risks harming the very businesses that make Wales a unique and thriving visitor destination.
The Welsh Government must reconsider this policy and work with businesses to ensure a fair and sustainable approach to tourism funding.
If you have any case studies or need advice. Our CLA Cymru lead on tourism is Emily Church and Jacqui Pearce on External Affairs. Of course any one of our team are happy to help.
