Wales to Introduce £1.25 Tourism Tax from 2027

Welsh holidaymakers could face a new nightly charge as the government unveils plans for a tourism tax, giving local councils the power to charge visitors staying in their areas.

The proposed levy, announced on Monday, would see tourists paying £1.25 per person per night when staying in hotels, B&Bs, and self-catered accommodation. A reduced rate of 75p would apply to hostels and campsites, with the charge extending to both adults and children.

Finance Secretary Mark Drakeford defended the measure, saying it was “fair visitors contribute towards local facilities.” He noted that “visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.”

The earliest implementation date would be April 2027, pending approval from the Welsh Parliament. Officials estimate the tax could generate £33m annually if adopted by all councils, though individual authorities can choose whether to implement it in their areas.

Local business owners have expressed concerns about the impact on tourism. Katherine John, who runs Morris Brothers department store in the popular seaside resort of Tenby, warned the tax “could be detrimental” to visitor numbers. “Anything that can create a barrier to coming to the area could be an issue,” she said.

The Welsh Conservatives strongly oppose the plan. Samuel Kurtz criticized the proposal, stating it would “risk Welsh jobs at a time when businesses are already under siege.” The tourism industry currently employs 159,000 people – nearly 12% of Wales’ workforce.

Under the proposed legislation, accommodation providers, including Airbnb hosts, must register their properties. The government also plans to introduce a licensing scheme before the 2026 Senedd election to ensure consistent safety standards.

The tax would exempt stays longer than 31 nights and people in temporary or homeless accommodation. Revenue raised must be ring-fenced for specific purposes, including tourism promotion, Welsh language initiatives, and improving visitor infrastructure.

For local accommodation providers like Helen Manley Jones, who lets a holiday cottage in Newport, Pembrokeshire, the tax presents a dilemma. “I would have to put up prices for the first time in four years,” she said, adding that “a lot of people will reconsider whether they come to Wales if they know they are going to be charged an extra holiday tax.”