Wales tourist tax may cost 'more to administer than it raises'
From 2027, overnight stays in Wales will become slightly pricier following the approval of the country's new visitor levy – commonly referred to as a tourist tax. This levy marks the first local tax in over 500 years to have been designed and legislated in Wales.
In two years time, anyone staying in hotels or Airbnbs will have £1.30 per night added to the cost of their stays – plus VAT in many cases. Those spending the night in hostels and on campsite pitches will pay an additional 80p per night. The earliest the levy can be introduced will be in April 2027.
With Plaid Cymru's backing for the Bill, it was passed with 37 Senedd Members in favour, 13 against and no abstentions.
The Welsh Conservatives immediately pledged to abolish the tax if they win the 2026 Senedd election. They cautioned that councils could add an unlimited levy premium, further escalating costs.
One reader, Blazerseams questions: "Does anyone actually believe Drakeford has anything coherent to say? His brilliant idea about the 20mph speed limit (from someone who doesn't drive) were, and are, gibberish."
While Novisit asks: "What about caravan sites?"
Ofcourseitis believes: "It's a tax on children's holidays, the poorer the family the greater the impact."
Reactor says: "Camp sites eh? Watch out for more wild camping then."
Yes-cymru states: "We pay tourists tax in every other country, not an issue, £1 per night extra is nothing."
Howonearth says: "Visitor numbers to Wales in 2023 was down 13% compared to 2019 mainly due to economic downturn, these are publicly available figures. You really couldn't make this up."
Cooperman1927 writes: "Why are so many always keen on paying more tax ? No wonder councils get away with such massive council tax hikes every year. The Welsh just roll over and accept everything."
Rufdog says: "I live less than 2 hours from Holyhead ,so I can cover North Wales in that time, so I will only be doing day trips in future. your loss."
Ynysmonexile believes: "£33 million extra revenue which will disappear into the Senedd administration money box to be spent on all sorts of goodies for the incumbents of Cardiff Bay Palace. Bureaucracy breeds more bureaucracy."
Jr1977 comments: "When everyone has calmed down, stopped overreacting and crying about it, in most cases it's only an extra £1.30 per night to pay on an already overpriced holiday. It's not the end of the world."
Rockdupont feels: "Another nail in Wales coffin. Sadly, it seems as though that is exactly what Plaid and Labour want. What is their ulterior motive?"
Statistix quotes: " 'The revised plan, now agreed, is for all under-18-year-olds to be exempt from the lower tier accommodation – campsites, hostels and outdoors centres. This has resulted in higher prices for others'. If the tax for the 'others' has to be raised to cover the apparent loss from exemptions, the only possible reason is that the projected £33m has already been spent in the minds of those who have proposed this tax. If it was a true visitor levy, each council who implements it would be grateful for what it receives on top of its other income streams. Don't be fooled."
Indigodebz asks: "Why aren't static caravan owners included? They are more likely to be taking dentist and doctor appointments than visitors for one thing."
Jnrm says: "The Manchester Tourist Tax was designed to assist in keeping occupancy rates high as it was thought the increase in hotel rooms was outpacing the number of tourist. Nothing to do with community projects. 'The Manchester Accommodation BID, a body representing 74 hotels and serviced apartments providers in the city, was set up in 2023 to administer funds raised from the charge. It was formed as part of a push to keep occupancy rates high as more tourist hotels and apartments are built in Manchester - amid fears visitor numbers were not keeping pace with the new developments."
Jeff2509 writes: "Manchester is already charging and making £28 million a year. All countries I visited in Europe charge local tax."
Jnrm comments: " 75% of the visitors to North Wales are day-trippers, who won't pay the tax and spend very little locally. The 25% who will pay - those staying in hotels, B&B etc - are the very people we want to encourage as they are the big-spenders. Will the cost of administering the tax be greater than the amount raised?"
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