Concerns over tourism tax impact on Welsh businesses

South Wales Argus

25-06-2025

Already dwindling tourist numbers
The Wales Tourism Alliance (WTA), which represents businesses and organisations across Wales, has voiced concerns that an additional tax would dissuade tourists from coming into Wales and supporting local businesses.
'The tourism industry as a whole is against levies, full stop,' says Rowland Rees-Evans, WTA chair.
'North Wales, Gwynedd, have been driving [the tax] because they've got certain issues at certain times of the year where they just can't move up there. If you've got too many people, you can charge them all. But the rest of the year and the rest of Wales, we could take more people,' says Mr Rees-Evans, emphasising the need for more tourists to be welcomed into South and East Wales.
The same position has been taken by the Welsh Conservative party.
'We need to scrap it' says Gareth Davies, Conservative shadow minister for culture and tourism. Interviewed on-site at a popular South Wales visitor attraction, he explained how the levy will 'eat into profit margins' for businesses, as well as the budgets of those visiting the region.
'It's really going to put people off coming into Wales, where we need to boost tourism numbers which have dropped since covid and haven't been restored.'
The number of overnight trips to Wales by domestic tourists in 2019 was 10.7million. By 2022, this number had fallen to 8.7million. Last year, there were 7.6million.
Monmouthshire, a popular destination for UK domestic tourists, has felt this impact on a local scale. In 2023, total visitor numbers were down -1.8 per cent from 2022.
Popular tourist attractions in Monmouthshire include Chepstow castle, Tintern Abbey and the Old Station at Tintern. The area also welcomes tourists for annual festivals such as the Abergavenny food festival, the Green Man festival and Castell Roc music festival.
Despite many Monmouthshire attractions having a daytime-focus, the country relies on overnight visitors far more, with 25 per cent of visitors who stay overnight generating 77 per cent of visitor spend, according to the 2023 tourism performance report.
This reliance on overnight visitors makes the area more vulnerable to the proposed accommodation levy, as the additional cost may convince visitors to stay fewer nights, or across the border in England.
Hopes of better funding for local services
The tax was proposed on the basis that any funds raised can help respond to the costs of tourism and improve facilities for both locals and visitors, such as toilets, footpaths and visitor centres.
The bill was informed by Dr Linda Osti's research, which demonstrates how a levy has been successful in other countries including Italy and the US.
'In the destinations we analysed, we couldn't see any decline in overnight stays,' says Dr Osti. 'With a levy, Wales can focus more on improving the services for both the local people and the tourists.'