Tourism tax gets Senedd approval: councils to decide on £1.30-a-night levy from 2027

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was approved by 37 votes to 13, paving the way for a £1.30 per person per night charge on hotel, B&B and self-catering stays, plus VAT. A reduced rate of 75p will apply to hostels and campsites, with under-18s exempt from the lower rate.

The Welsh Government says the levy will help fund improvements to local tourism infrastructure, including toilets, footpaths, beaches and visitor centres, with all revenue reinvested in the communities where it is raised.

Finance Secretary Mark Drakeford described the measure as a “small contribution that will make a big difference,” adding:

“Visitor levies are used successfully all over the world… We want the same for Wales.”

The bill also establishes a national register of visitor accommodation providers, laying the groundwork for future licensing and offering better data on the sector’s scale and impact.

If implemented across all 22 Welsh councils, the levy could raise £33 million annually, though only Cardiff and Anglesey have so far indicated plans to adopt it. Other councils are expected to consult locally before making a decision.

The move follows Swansea Bay News’ earlier coverage of the debate surrounding the tax, which has divided opinion across the tourism sector and political spectrum. Critics warn the levy could deter visitors and harm the economy, particularly in rural areas reliant on seasonal trade.

Sam Rowlands, Conservative shadow finance secretary, called the bill “bad for Wales and bad for the Welsh tourism sector,” citing industry concerns and potential job losses.

But supporters argue the measure will help balance the pressures of tourism with the needs of residents. Plaid Cymru’s Luke Fletcher said:

“There is a genuine opportunity here for us to create a sustainable tourism sector that works with both our communities and businesses.”

Labour’s Jenny Rathbone added:

“Why should poor people rather than visitors have to pay?”

The legislation marks the first locally designed tax in Wales for over 500 years, and comes as part of the Welsh Government’s broader investment in tourism, including a £50m Wales Tourism Investment Fund and new weather-proofing grants.

For more background on the debate, see our earlier report: Will it support tourism or devastate the sector?

#JennyRathboneMS #LukeFletcherMS #MarkDrakeford #SamRowlandsMS #tourism #tourismTax #WelshGovernment

Tourism Tax: Will it ‘support tourism’ or ‘devastate the sector’?

The Labour-controlled Welsh Government say its proposed visitor levy will help support a thriving, sustainable tourism industry in Wales by giving councils the choice to introduce a small additional charge on overnight stays in their area which would be re-invested in tourism.

The Welsh Conservatives oppose the concept of a Tourism Tax and say they will vote against, but have also put forward a series of amendments to the Bill to reduce its scope and impact, including exemptions and levy reductions.

The Bill to introduce the visitor levy reaches its third stage in the Senedd today (1 July).

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill proposes people staying overnight in Wales and enjoying everything the country has to offer will pay a small charge. All the money raised will support local tourism activity and infrastructure.

The tax will be £1.30 per person per night in a hotel in Wales, but can be increased by councils, given the provision of an unlimited “premium which may be added”

The Bill has already been amended so under-18s will no longer have to pay the levy when staying in hostels or campsites.

The rate for those staying in hostels and on campsite pitches (aged 18 and over) will be 75p per person per night (the lower rate) and the rate for people staying in all other accommodation types will be £1.30 per person per night.

Speaking ahead of the debate, Finance Secretary Mark Drakeford said: “The visitor levy is a small contribution that could make a big difference if councils choose to introduce it in their local areas. We think it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience.

“Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.”

The Conservatives meanwhile maintain that the tourism tax would further push visitors away and put jobs at risk.

Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: “Labour and Plaid’s toxic Tourism Tax will devastate the sector; it must be axed.

“The Welsh Labour Government’s own figures project up to £576 million in economic damage over the next decade and hundreds of potential job losses annually as a result of their so-called ‘visitor levy’, which enjoys full support from Plaid Cymru and the Lib Dems.

“Welsh Conservatives are clear: we will be voting against this act of economic self-harm today, because the sector deserves to be supported not hit with a new tax.”

#tourism #tourismTax #WelshConservatives #WelshGovernment

It makes total sense, specially taking into account the current housing problem in Europe where demand far outstrips supply...

"Spain is planning to impose a tax of up to 100% on properties bought by non-residents from countries outside the EU, such as the UK.

Announcing the move, Prime Minister Pedro Sánchez said the "unprecedented" measure was necessary to meet the country's housing emergency.

"The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants," he said.

Non-EU residents bought 27,000 properties in Spain in 2023, he told an economic forum in Madrid, "not to live in" but "to make money from them".

"Which, in the context of shortage that we are in, [we] obviously cannot allow," he added.

The move was therefore designed to "priorit[ise] that the available homes are for residents", he said."

https://www.bbc.com/news/articles/cr7enzjrymxo

#EU #Spain #Housing #TourismTax