Tourism Levy Announced in Wales

The Welsh Government has introduced the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill. If passed, the Bill would give local authorities the power to introduce a visitor levy on overnight stays in their area. While the proposal has sparked debate, it’s important to note that this is not law yet.

What is the Visitor Levy?

The visitor levy is a per person, per night charge that would apply to stays in visitor accommodation, such as hotels, campsites, and holiday lets. This charge would apply to all visitors, no matter where they are travelling from, but only in areas where a local authority has decided to adopt the levy.

A key feature of the proposal is that the decision to implement a levy rests with individual local authorities. Before making this decision, authorities must consult with their communities to ensure the levy reflects local priorities. This decentralised approach allows flexibility and ensures communities have a say in shaping tourism strategies that suit their unique circumstances.

Projected Impact

If all local authorities in Wales choose to implement the levy, it is estimated to generate up to £33 million annually. These funds are intended to support the sustainability of tourism by financing the upkeep of facilities like public toilets, footpaths, and beaches, as well as supporting visitor centres. The reinvestment aims to enhance the visitor experience while alleviating the financial burden on local residents.

A New Register for Visitor Accommodation

In addition to the levy, the Bill introduces a requirement for all visitor accommodation providers in Wales to register their business. This register will cover all providers, regardless of whether their local authority chooses to introduce a levy. It will collect information such as the type of accommodation and its location, providing better data on the sector to inform future policy decisions.

Why a Visitor Levy?

The Welsh Government has framed this proposal as a way to support sustainable tourism. The levy aims to generate funds that local authorities could reinvest into services and infrastructure that support tourism, such as maintaining beaches, improving visitor facilities, and protecting natural landscapes.

The proposed levy is structured as a per person, per night charge on overnight accommodations, with rates set nationally to ensure consistency:

• £0.75 per person per night for stays at campsites and hostels.
• £1.25 per person per night for stays in all other types of visitor accommodation.

Exemptions and Refunds

The legislation outlines specific exemptions to ensure the levy is applied fairly:

• Stays exceeding 31 consecutive days.
• Stays at an individual's sole or main residence.
• Stays arranged by local authorities for emergency or temporary housing.

Additionally, provisions are in place for refunds in certain circumstances, such as stays necessitated by emergencies (e.g., a home rendered uninhabitable due to fire or flood) and for disabled individuals incurring additional levy costs when accompanied by a carer.

What’s Next?

The Bill is currently progressing through the legislative process in the Senedd (Welsh Parliament). Several key steps remain before any levy could be introduced:

1. Senedd Approval: The Bill must pass through the Senedd, where it will be debated and potentially amended.
2. Local Authority Consultations: Once passed into law, individual local authorities would decide whether to introduce the levy after consulting their communities.
3. Implementation: For areas adopting the levy, infrastructure for collecting the charge and administering the accommodation register would need to be established.

The earliest timeline for implementation, should the Bill pass, is 2026, giving businesses and authorities time to adapt.

Stay Informed

As this legislation evolves, CLA Cymru will continue to monitor developments and advocate for our members' interests.

For further information on the proposal, visit the Welsh Government’s website or contact our team.