Legislation enacted for tourist tax to bolster tourism sector
Wales Introduces Visitor Levy to Boost Tourism
The Welsh Government has passed a new law that will see the introduction of a visitor levy, aimed at supporting and enhancing the country's attractions. Finance Secretary Mark Drakeford stated that the levy will make a significant difference in maintaining and improving the places that make Wales a wonderful destination to visit and live.
Under the new law, a visitor accommodation register will be established and run by the Welsh Revenue Authority (WRA). From Autumn 2026, anyone charging visitors for overnight stays in Wales must sign up for this register. The WRA will work closely with providers and the industry to ensure everyone is prepared for the levy's introduction in autumn 2026.
The WRA will also be responsible for collecting and managing the levy on behalf of councils. The levy rates are set at 75p per person per night for hostels and campsites, and £1.30 per person per night for other accommodation types. Notably, under-18s in shared accommodation are exempt from the levy.
Councils have the discretion to decide how the funds raised from the levy are used. They can invest in improving facilities such as toilets, footpaths, beaches, visitor centres, and activities. The national register, managed by the WRA, will provide better data about tourism, enabling councils, the Welsh Government, and communities to make informed decisions.
The responsibility for implementing and administering the levy lies with the local councils in Wales. Before introducing the levy, councils must consult with their local communities. The earliest a levy could be introduced is 2027.
The WRA has a proven track record managing Wales' devolved taxes, positioning it well to administer the visitor levy and the register efficiently. The levy is expected to make a substantial contribution to the upkeep and development of Wales' tourism industry, ensuring it remains a top destination for visitors and locals alike.
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