New visitor levy plans and its impact on accommodation hosts in Wales

Wales' Finance Minister Mark Drakeford has announced changes to the plans for a proposed visitor levy in Wales, introducing two levy charges for anyone staying overnight in holiday accommodation.

Although the law is being introduced by Welsh Government, local authorities have discretion on whether to implement the charges within its catchment. The earliest any council could introduce a levy is 2027 as a local consultation period must take place beforehand to provide residents and businesses the opportunity to share their views ahead of a final decision being made.

The initial levy proposal was for the charge to apply at one of two rates to anyone staying in Wales overnight in holiday accommodation. Two levels of charge were proposed – 75p per person per night for those staying in hostels and on campsite pitches, and £1.25 per person per night for those staying in all other accommodation types.

The tourism sector is extremely concerned at this announcement. Scouts Cymru believes there would be "unintended consequences" for it, and groups like it, as the bill could place an unfair burden on volunteers and unintentionally put future-shaping opportunities for young people at risk.

Mr Drakeford has said that exempting all under-18s from the lower rate of the levy would mean that prices will go up by 5p for all other visitors, to 80p and £1.30 per person, per night.

There are three further changes announced by the Finance Minister, confirming that:

1. There will be a six-month window following a council decision to introduce the levy before visitors are expected to pay, to allow businesses to adapt their businesses
2. People staying overnight will pay at the point of departure, rather than on arrival
3. The Welsh Revenue Authority will oversee the collection process

We are extremely concerned with the point of taxation being moved from arrival to departure. This increases the administrative burden on holiday accommodation providers, who have already seen a number of changes implemented within the last five years. Many rural holiday accommodation providers allow for a varying degree of contact with overnight stayers with most paying for their accommodation before arrival and have limited contact with them throughout their stay. The process of taking collection on arrival is well-known by many tourists as it is carried out by many European countries who operate a tourism tax. Requesting visitors to pay for a tax at the end of their stay will only increase the risk for non-payment.

CLA Cymru continue to oppose the introduction of a tourism levy. If this damaging policy continues however, we urge the Welsh Government to re-evaluate the implementation and ensure collection of the levy is incorporated into the pre-arrival payment or at the arrival at the accommodation.