Welsh Government Advances Plans for Tourist Tax

Legislation proposing a tax on certain overnight tourist stays is set to commence its journey through the Welsh Parliament in the current month. This framework would empower local councils to implement a modest “visitor levy” for revenue generation. The proposed legislation incorporates a registration system for accommodation providers, which the government asserts is essential for the levy’s effectiveness. In contrast, the Welsh Conservatives have stated that a tourism tax “will risk jobs”. Finance Secretary Mark Drakeford and Economy Secretary Rebecca Evans issued a statement announcing that the bill concerning the levy and registration will be presented to the Senedd on 25 November. They stated, “The levy will raise additional funds for local authorities to support the long-term sustainability of our tourism industry.” They further added, “Each local authority will be able to decide whether to introduce a visitor levy in its area, based on local circumstances.” The secretaries indicated that feedback had been received suggesting the necessity of a registration mechanism to underpin the levy. They quoted, “This has informed our decision to include a national register of all those providing visitor accommodation in Wales within the Bill.” They also mentioned that the registration scheme represents an initial move towards a licensing system, which they described as “a means of helping to establish a level playing field and to ensure visitors have confidence in the high standards available throughout Wales”. A distinct bill will encompass plans for a licensing scheme targeting accommodation providers, including all holiday homes. While earlier reports suggested its introduction by the year’s end, the recent statement omitted a specific date. On Tuesday, the Welsh government clarified that this bill would be introduced within the current Senedd term, which concludes in mid-2026. Andrew RT Davies, who leads the Welsh Conservatives in the Senedd, stated: “We’ve been absolutely clear from the start that this policy is the wrong one for Wales.” He continued, “A tourism tax will risk jobs at a time when businesses are being clobbered by Labour, it will impose red tape”, and further commented: “Our tourism industry should be nurtured by the Welsh government, not hamstrung by new taxes.”