Wales Approves £1.30 Tourism Tax Starting 2027

The Senedd has voted 37-13 to approve plans for a tourism tax across Wales, set to begin in 2027 at the earliest.

Visitors will pay £1.30 per person per night (plus VAT) for stays in hotels, B&Bs and self-catering accommodation, whilst those in hostels and campsites face a 75p charge. Under-18s are exempt from the lower rate.

The tax could raise around £33 million annually if implemented nationwide, though Wales’ 22 councils will decide locally whether to introduce the levy. Only Cardiff and Anglesey have indicated plans so far.

Finance Secretary Mark Drakeford told the Senedd: “By passing this bill, we will give councils the choice to introduce a modest additional charge which would be reinvested to support a thriving, sustainable tourism industry.”

He described it as “the first local tax for more than 500 years to have been designed and made in Wales” and compared the cost to “less than the cost of a cup of coffee.”

However, Conservative shadow finance secretary Sam Rowlands warned the tax is “bad for Wales and bad for the Welsh tourism sector,” arguing it will “impact jobs and harm the economy.”

Labour’s Jenny Rathbone defended the measure, questioning: “Why should poor people rather than visitors have to pay?” after referencing thousands visiting Cardiff for Oasis concerts.

Plaid Cymru’s Luke Fletcher supported the bill, saying: “There is a genuine opportunity here for us to create a sustainable tourism sector that works with both our communities and businesses.”

The legislation will also establish a register of visitor accommodation providers, laying groundwork for future licensing plans.