The Welsh Government has recently confirmed its intentions to move forward with plans for a tourism tax in Wales. This move is set to include the establishment of a national register encompassing all individuals offering visitor accommodation within the country. The prospect of a tourism tax has sparked significant debate within the tourism industry, with concerns raised that it may deter potential visitors.
A statement released by the Welsh Government outlined the details of the proposed legislation, known as the “Visitor Accommodation (Register and Levy) Etc. (Wales) Bill,” which is scheduled to progress in the Senedd on November 25. The bill will grant councils the authority to introduce a “visitor levy,” described as a nominal fee to be paid by overnight visitors staying in visitor accommodation. The funds collected through this levy are intended to provide additional resources to local authorities, supporting the long-term sustainability of the tourism sector.
Economy minister, Rebecca Evans, and finance minister, Mark Drakeford, jointly emphasised the collaborative approach taken in developing the tax, stating, “One of the Welsh Government’s tax principles is that our taxes should be developed through collaboration and involvement.” Furthermore, they highlighted the importance of a registration system to support the proposed levy, thus including a national register of all providers of visitor accommodation within the bill.
The Welsh Government has previously sought input on a statutory licensing scheme for visitor accommodation as a measure to ensure consistent standards and build visitor confidence throughout Wales. The registration scheme introduced in the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill is viewed as an initial step towards this broader licensing scheme. Subsequent legislation is expected to encompass a statutory licensing scheme enabling accommodation providers to demonstrate adherence to specified conditions.
While acknowledging the ongoing discussions with tourism stakeholders, accommodation providers, and local authorities, the Welsh Government reiterated its commitment to engaging with relevant parties to refine the forthcoming legislation. The decision-making process on whether to implement the visitor levy will ultimately rest with individual councils, reflecting a decentralised approach to the taxation framework.
As discussions continue to unfold surrounding the tourism tax in Wales, both proponents and critics await further clarity on the potential implications for the industry. The introduction of a levy on overnight visitors marks a significant development in the Welsh Government’s efforts to bolster financial support for local authorities while reinforcing quality standards across the tourism sector. The upcoming legislative steps are poised to shape the future landscape of visitor accommodation and taxation policies in Wales.