In a move to alleviate concerns about the financial burden on low-income families, the Welsh government has announced that children and young people staying in hostels, campsites, or outdoor centres will be exempt from a proposed tourism tax of 75p per night. This decision comes after Finance Secretary Mark Drakeford previously stated that exempting children from the visitor levy would lead to a significant drop in revenue. However, after reevaluating the evidence, Drakeford announced that under 18s staying at lower level accommodations would now be entirely exempt from the tax, while charges for other guests will increase by 5p per night.
If the new law is passed by the Senedd, councils will have the authority to decide whether or not to implement the fee, with potential charges coming into effect as early as 2027. Despite the possibility of not all local authorities opting to introduce the tax, it is estimated that it could generate around £33 million yearly. This would result in an increase of the fee for staying at hotels, B&Bs, and self-catering accommodations from the initially proposed £1.25 to £1.30 per person per night, while for hostels and campsites, it would rise from 75p to 80p.
Drakeford defended the visitor levy by highlighting that it would cost less than everyday items like a sausage roll, a cup of coffee, or a bottle of water. He reassured that this modest fee would not deter people from exploring all that Wales has to offer and emphasized the benefits it would bring. The Welsh government specified that the funds raised through the tax would go towards supporting services in tourism hotspots, although critics are concerned it may discourage visitors from coming to Wales.
While some have expressed opposition to the measure, with Conservative Aberconwy Senedd member Janet Finch Saunders labeling it as detrimental to Welsh tourism businesses, others like Plaid Cymru’s Luke Fletcher have shown support. Fletcher pointed out that tourism exerts unsustainable pressures on communities, especially where it is most concentrated, and asserted that similar taxes in Europe have not adversely affected tourism sectors. Despite differing opinions, concerns have been raised by groups like the Scouts, who fear that young people might miss out on camps and overnight stays in Wales due to the tax
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