Wales launches tourist tax consultation

The Welsh Government has launched a consultation on proposals to give local authorities the powers to introduce a visitor levy.

The levy would be a charge paid by people staying overnight in accommodation in Wales. Each local authority in Wales will have the power to decide if they want to introduce a visitor levy, and the money raised will be re-invested in supporting local tourism, for example keeping beaches and pavements clean and maintaining parks, toilets and footpaths.

More than 40 countries and holiday destinations around the world have introduced a form of visitor levy, including Greece, France, Amsterdam, Barcelona, and California.

The Welsh government said the tourist tax “would represent a very small proportion of a visitor’s overall spend”.

The consultation is seeking views on who should pay a levy, who would be charging and collecting it, how it could be best applied and how revenues from the tax could be allocated. It will end on 13 December 2022.

The Welsh government added that the delivery and implementation of a tourist tax would “span a number of years” and be subject to approval by the Senedd.

Rebecca Evans, minister for finance and local government, said: “These proposals are about preparing for the future. Our intention is to bring about a sense of shared responsibility between residents and visitors, to protect, and invest in, our local areas. By asking visitors – whether they have travelled from within Wales or from further afield – to make a small contribution towards maintaining and enhancing the place they are visiting, we will encourage a more sustainable approach for tourism.”

The proposals have been progressed through Welsh government’s co-operation agreement with Plaid Cymru. Plaid Cymru designated member Cefin Campbell said: “While Wales may be the first place in the UK to introduce such a levy, we do not believe it will be the last – as we have seen recently, a visitor levy may soon be introduced in Edinburgh so Wales is not alone.

“We want to continue to see a thriving tourism industry in Wales. It is vital we have sustainable, responsible tourism that works both for visitors and for the communities they are visiting. Should local authorities decide to implement a visitor levy, it could make a real difference in communities across Wales to help develop and protect local services and infrastructure. We welcome all views in understanding what would work well for Wales and encourage everyone to contribute to the consultation.”

A bill allowing local authorities to introduce tourist taxes is expected to be put before the Scottish parliament next year.

Photo: Shutterstock