Tourism tax in Wales greenlit

Admin

July 9, 2025
3 min read

A law that would allow councils to implement a tourism tax on overnight visitors in Wales has been agreed in a vote by the Senedd. Anyone staying in a hotel could see £1.30 a night on top of the cost of their stay if the plans go ahead.

The hope is that the tax could generate as much as £33 million annually to support and improve tourist destinations if all local authorities implement the tourism tax. Businesses however fear that it could discourage visitors.

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The Welsh Conservatives have vowed to scrap it if the party wins the 2026 Senedd elections. Plaid Cymru’s support for the legislation means that the government of Wales has the numbers needed to bring the law through. Councils would have to approve the measure for it to become a reality. Cardiff, Anglesey, and Gwynedd have all shown interest but some areas have ruled it out.

Under the scheme, anyone staying in either a hostel or a campsite could pay 75p per night. Those staying in all other accommodation would be charged £1.30 per night. The charges will also be subject to VAT and children under 18 would be exempt at hostels and campsites.

Senedd members debated earlier this week, resulting in 37 votes for and 13 against. It is the first local tax for 500 years to have been designed in Wales, Finance Secretary Mark Drakeford said.

“We believe it is reasonable for visitors to contribute towards infrastructure and services integral to their experience, as they do in so many other parts of the world,” he said.

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