From April 2027 an overnight stay in Wales will incur a “levy”, or as some prefer to call it a “tourism tax”, which the Welsh Government describes as a “small contribution” for a “lasting legacy”.

The Visitor Accommodation (Register and Levy) (Wales) Bill received Royal Assent on the 18^th of September 2025 and gives local authorities the power to charge an overnight levy through their accommodation providers. It also introduces the requirement by law for an accommodation provider to be registered.

The money raised from the levy is to be used to improve local tourism by supporting the maintenance of local facilities and infrastructure, protecting Wales’s landscapes and ensuring communities can continue welcoming tourists whilst preserving their locality.  

It will be up to each local authority to decide if they wish to introduce the charges and they will each have the power to increase those charges year on year, in agreement with Welsh Government. Local councils are also having to discuss whether to charge a levy or not with their residents and businesses. The earliest a council could bring in a visitor levy is April 2027.

Money raised by the visitor levy will be invested directly into the local area to support local tourism and could be spent on improving local highlights such as maintained beaches and parks, town centres, and cultural attractions.

So what will visitors have to pay? Those staying on a campsite or using other shared accommodation such as hostels will need to stump up 75p per person per night. Children under the age of 18 are exempted from this charge. Those choosing to stay in other accommodation such as self-catering lets or hotels will need to pay an extra £1.75 per person per night, with children under the age of 18 are not exempted from the levy for these types of accommodation.

An impact assessment undertaken as part of the policy making process showed that the number of visitors could fall as a result of the plans. The assessment also suggests that in some cases the levy could lead to 100 new jobs, but that in a worst-case scenario we could see 390 fewer jobs.

The “tourism tax” has had mixed reactions from accommodation providers. Those opposing the levy say that this is just another nail in the coffin, particularly given the existing requirements set by Welsh Government to fill 182 days of stays or face a significant council tax increase. Others are hopeful that, as long as the money is genuinely ringfenced for supporting communities, resources and infrastructure will benefit from the levy and improve both the visitor experience and the lives of those who reside in communities that attract visitors from all over the world.