B&Bs, campsites, Airbnb’s, and hotels across Wales could be subject to substantial fines with the implementation of a new tourism tax. The Welsh Government is moving forward with plans to introduce a visitor levy, commonly known as a tourism tax, which will impact individuals staying overnight in Wales. Scheduled to be enforced from 2027 onwards, the tax will comprise two levels of charges. Hostel and campsite occupants will be charged 75p per person per night, while other types of accommodation will incur a fee of £1.25 per person per night.
Upon the Senedd’s approval of the Bill, which is highly anticipated, each of Wales’ 22 councils will have the authority to decide whether or not to adopt the levy. Prior to its implementation, local authorities must engage with their communities, and the levy is not obligatory. Furthermore, councils will have the discretion to modify the levy amount in the future, albeit with ministerial sanction and additional consultation. One key requirement of the newly proposed law is the establishment of a register of visitor accommodation throughout Wales, encompassing a wide spectrum of lodging options such as Airbnb and short-term rentals.
As per draft revisions to the Bill released ahead of its next Senedd session, non-compliant accommodation providers could face penalties. Failure to register accommodation or incorrect information provision could result in a £300 fixed penalty, with an additional daily charge of £60 for every subsequent day of non-compliance. Failure to settle fines within 30 days may lead to the recovery of amounts owed as a civil debt. While an appeals process will be accessible, penalties may be reduced based on a “reasonable excuse” defence under specific circumstances. Ministerial authority is granted to alter, waive, or suspend penalties in exceptional situations.
Accommodation providers will be compelled to register under the visitor levy bill, which will be a publicly accessible document. Nonetheless, certain details concerning accommodation located in private residences will be exempted from public disclosure. Finance secretary Mark Drakeford clarified that although penalty specifics were not initially incorporated in the Bill submitted to the Senedd, forthcoming amendments at Stage 2 will furnish additional details. An official decision on the levy’s enactment is anticipated in 2025, with the registration process for all visitor accommodation providers set to commence in 2026.
It is envisioned that the tourism tax will provide a structured framework for regulating visitor accommodation and enhancing revenue streams for the Welsh tourism sector. The fines imposed on non-compliant providers aim to ensure adherence to the legislation and promote accountability within the industry. With the eventual enforcement of the tourism tax, Wales aims to bolster its tourism infrastructure and funding initiatives to support the growth and sustainability of the hospitality sector.
The impending implementation of the visitor levy bill underscores the concerted efforts by the Welsh Government to fortify the tourism industry’s regulatory framework and drive economic prosperity through enhanced sector governance. By establishing a comprehensive register of visitor accommodation and enforcing penalties for non-compliance, Wales is poised to streamline its tourism sector operations and foster a conducive environment for sustainable growth and development.