A tourism tax of £1.25 per night could be introduced in Wales from 2027, according to recent reports. Visitors to hotels, B&Bs, and self-catered accommodations would pay the visitor tax if councils decide to implement it in their respective areas. Hostels and campsites will be charged at a lower rate of 75p. The Welsh government has stated that money raised from the tax would be used to fund services in tourism hotspots. However, some critics have stated that it could deter visitors.
The tax will be charged per person, per night and will also apply to children. The legislation was published on Monday and requires a piece of legislation to pass through the Welsh Parliament. Officials believe that the tax could begin as early as April, 2027. While not all councils are expected to introduce the visitor levy, it is expected to raise an estimated £33m per year. Stays over 31 nights and people in temporary accommodation or homeless hostels will not be taxed.
Councils have to spend the money on specific projects, which will be ring-fenced in their budgets. These include promoting tourism, improving infrastructure or services used by visitors, and promoting the Welsh language. The policy was part of the co-operation deal signed between Labour and Plaid Cymru back in 2021.
Critics, however, warn that the tax could risk jobs in the tourism sector, which employs around 159,000 people, or nearly 12% of the workforce in Wales. A report by MPs in the Commons Welsh Affairs Committee last year also expressed concern about the tax’s ability to deter international tourists.
Despite criticism from some quarters, Finance Secretary Mark Drakeford believes that visitor taxes are common around the world, benefiting local communities, businesses, and tourists. While opponents argue that the tax would discourage visitors, Drakeford said it was “fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience.
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