First-ever tax on visitors to Wales officially set to become law
Wales' tourist tax has now fully backed by the Senedd in a final vote
Tourists can now be charged extra to stay overnight in Wales as the so-called tourism tax has passed its final hurdle in the Senedd. It means the process for councils to begin charging people up to £1.30 a night to stay in their area can start.
There are two levels of charge. Those staying in hostels and campsites would pay 75p per person per night while people staying in all other accommodation would pay the higher rate of £1.30 a night. The charges are subject to VAT while children under 18 will be exempt at hostels and campsites after a change of tack from the Welsh Government during the parliamentary process.
It will be up to each of Wales' 22 councils to decide if they will introduce the charge, which will not be in force before 2027. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here.
The Welsh Government say if all councils introduce the charge it would raise £33m a year but when we asked all Welsh councils few committed to introducing it with some ruling it out. Cardiff council, which will bring it in, says it believes it could raise £4m a year and that it would use that for marketing the city to tourists.
Councils would also be able to ask the Welsh Government to change the amount.
Key questions answered: What is Wales' tourism tax, how much is it, and where will it apply?
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There are however concerns that the money is not ringfenced and businesses worry it might put visitors off and have concerns about administering the scheme.
Tourism businesses in Wales have broadly opposed the plan saying it is the latest obstacle being put in their way and saying they fear it will mean people will book to stay elsewhere.
Welsh Government finance minister Mark Drakeford said visitor levies are used around the world to support the local economy and investing in the infrastructure and services. He said the bill comes from a "principle of fairness".
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He says the bill will "ensure its long-term sustainability" but it is only fair for visitors to Wales to "contribute towards local facilities, helping to fund infrastructure and services".
The bill passed by 37 votes to 13 against. Senedd members from Labour and Plaid Cymru voted to pass the bill with the Conservatives voting against. The Conservatives have said they will scrap the tax if they get into power at the Senedd election in May 2026.
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