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In a move set to impact tourism, a new law enabling councils to impose a levy on overnight stays in Wales is poised for approval by the Senedd. The proposal entails an additional charge of £1.30 per night for individuals staying in hotels, with the aim of generating up to £33m annually to enhance tourist destinations. Nonetheless, concerns have been raised by businesses regarding the potential deterrent effect on visitors.
The Welsh government has secured the necessary support for the legislation from Plaid Cymru, ensuring the law’s passage through the Senedd. Under the outlined scheme, guests at hostels and campsites would be subject to a charge of 75p per person per night, while those staying in other accommodations would face a higher fee. Notably, children under 18 would be exempt from these charges at hostels and campsites, which are also subject to VAT.
Labour’s 2021 Senedd election manifesto introduced the idea of a tourism levy, which received further support in the now-defunct agreement between the party and Plaid Cymru. The proposal, tailored to address concerns about tourism’s impact on Welsh communities, empowers individual councils to determine whether to implement the levy, with a potential rollout as early as 2027. While some councils have expressed reluctance to enforce the levy, others such as Cardiff and Anglesey are considering its implementation.
Assessment studies suggest varying economic consequences of the levy, predicting potential job losses and economic impacts. The Welsh Tourism Alliance and the Mid Wales Tourism group have voiced apprehensions over the levy’s potential ramifications, with the Welsh Conservatives pledging to abolish the plans post the next Senedd election. Conversely, Plaid Cymru sees the law as a step towards fostering a sustainable tourism sector beneficial to both tourists and businesses. Accommodation providers will also be obligated to join a register as part of the law, underscoring the government’s objective of ensuring visitors contribute towards local facilities and services essential to their overall experience
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