Wales has officially passed legislation to introduce a tourist tax starting in 2027, with visitors set to pay up to £1.30 per night depending on their accommodation.
The new law, known as the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill, was approved by the Senedd (Welsh Parliament) on July 8 after years of debate.
Although first proposed in 2018, the law will not take immediate effect. A mandatory consultation process must be completed with local communities before individual councils can choose whether to implement the levy in their area.
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Scope of the tourist tax
Once adopted, the charge will apply to visitors aged 18 and above staying in hotels, bed and breakfasts, hostels, and campsites.
Under the final version of the legislation, guests at hotels and B&Bs will pay £1.30 per night, while those staying in hostels and campsites will be charged 75 pence. This is a modest increase from the original proposals outlined in November 2023.
Welsh finance secretary Mark Drakeford defended the move, highlighting that tourist levies are common across the globe.
He told the Welsh Parliament: “By voting to back this measure, Wales is joining many other worldwide destinations which already benefit from similar levies. They ensure the pressures and opportunities tourism bring are balanced fairly between visitors and residents.”
Revenue generation
The revenue, estimated to reach £38 million annually, will be used to improve tourism infrastructure and support local areas.
In addition to economic benefits, the Welsh government sees the levy as a tool to revitalize the Welsh language. The funding is expected to support the goal of increasing the number of Welsh speakers to one million by 2050, though specific plans for how this will be achieved are still under development.
Wales follows in the footsteps of Scotland, where legislation passed in May 2024 allows councils to impose a visitor levy.
Edinburgh will be the first Scottish city to implement it, introducing a 5 pence per night charge from July 2026, while Glasgow plans to launch its own levy in January 2027, aiming to raise around £16 million annually.
While English law currently prohibits formal tourist taxes, cities such as Liverpool and Manchester have found ways to implement alternative visitor charges.
Tourist tax
Globally, tourist levies are increasingly widespread. France has imposed its taxe de séjour since 1910, and over 60 countries now have similar systems.
Such measures are generally seen as effective sources of public funding rather than deterrents to tourism. For instance, Venice’s €5 entrance fee generated €2.4 million in 2024 with little effect on tourist numbers.
Wales’ new law reflects a growing international trend — using visitor contributions not only to sustain tourism but also to invest in cultural preservation and local wellbeing.
