Wales Unveils Two-Tier Tourism Tax System Starting 2027

The Welsh Government has announced significant updates to Wales’ proposed tourism tax, with Finance Minister Mark Drakeford revealing a new two-tier charging system during a Senedd finance committee meeting. 📝

The visitor levy, which could be implemented as early as 2027, will now feature two distinct rates: 80p per person per night for those staying in hostels and campsites (up from the originally proposed 75p), and £1.30 per person per night for guests in all other accommodation types (increased from £1.25).

Mr Drakeford confirmed that all under-18s will be exempt from the lower rate of the levy, which necessitated the slight increase in charges for others.

Three additional policy changes were announced:

1. A six-month implementation window will be provided once a council decides to introduce the tax, giving businesses time to prepare their systems for advance bookings.
2. Visitors will pay the levy upon departure rather than arrival, ensuring people pay exactly for the length of their stay and avoiding the need for refunds or extensions.
3. The Welsh Revenue Authority will oversee the collection process.

“This means there will be additional time over and above that allowed in the original bill for the sector to prepare their systems for advance bookings,” Mr Drakeford explained during the committee meeting.

While the Welsh Government is introducing the legislation, the decision to implement the tax will ultimately rest with each of Wales’ 22 local councils, who must first conduct consultations with residents.

The Finance Minister also clarified that mobile homes used as permanent residences and permanent caravan sites would not “inadvertently” be taxed under the scheme.

The announcement comes after concerns were raised by organisations like the Scouts about potential “unintended consequences” of the original proposal.