“Labour and Plaid’s toxic Tourism Tax will devastate the sector; it must be axed’ say the Welsh Conservatives on the day a crucial vote is taken at the Senedd

“Labour and Plaid’s toxic Tourism Tax will devastate the sector; it must be axed’ say the Welsh Conservatives on the day a crucial vote is taken at the Senedd.

A new visitor levy will see visitors staying overnight in Wales paying a small charge, which will be re-invested in tourism.

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill, to introduce the visitor levy, reaches its third stage in the Senedd today (Tuesday) with the debate expected to take place at 5pm.

The Welsh Government say the levy will support tourism in Wales by giving local councils the option to introduce a small charge on overnight stays in their area.

The bill proposes that people staying overnight in Wales will pay, with all the money raised being used to support local tourism activity and infrastructure.

Speaking ahead of the debate, finance secretary Mark Drakeford said: “The visitor levy is a small contribution that could make a big difference if councils choose to introduce it in their local areas.

“We think it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience.

“Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.”

The bill has been amended so under-18s will no longer have to pay the levy when staying in hostels or campsites.

The rate for those staying in hostels and on campsite pitches (aged 18 and over) will be 75p per person per night (the lower rate) and the rate for people staying in all other accommodation types will be £1.30 per person per night. 

The Welsh Conservatives oppose the concept of a Tourism Tax and will vote against, but have also put forward a series of amendments to the Bill to reduce its scope and impact, including exemptions and levy reductions.

 Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: “Labour and Plaid’s toxic Tourism Tax will devastate the sector; it must be axed.

“The Welsh Labour Government’s own figures project up to £576 million in economic damage over the next decade and hundreds of potential job losses annually as a result of their so-called ‘visitor levy’, which enjoys full support from Plaid Cymru and the Lib Dems.

“Welsh Conservatives are clear: we will be voting against this act of economic self-harm today, because the sector deserves to be supported not hit with a new tax.”

Rhayader Town Council has previously raised concerns with the Senedd that a Tourism Tax would put Powys at a gross disadvantage, would pit one area against another and may even hit people coming to work in Wales, visiting family or loved ones in hospital in Wales, they said.

Councillor David Evans said tourism is one of Wales’ main industries and it should be supported.

“The Welsh Government seems intent on destroying it. This tax if it comes about, will give Powys County Council the decision of whether or not to levy the charge.

“If they bring these charges in, they will increase them each year. I think it is putting us at a gross disadvantage.

“Are we going to tax contractors coming to work and stay in the area, or people coming to visit family and what about people coming to Wales to visit someone in hospital – how do you distinguish?”

Councillor Rhys Thomas said giving councils the right to charge the tax would put Powys versus Pembrokeshire or North Wales. 

He said; “I think the big issue is either you have a tourist tax across the whole country or you don’t do it at all.”

But Rhayader town and county councillor Angela Davies said; “Those of us who live in the Elan Valley, we are inundated with day trippers who leave their rubbish behind and our footpaths are in a real mess and there are lots of people that want to walk them. So there is a question about how we fund our tourism infrastructure,” she said.

Meanwhile, holiday home owners in Powys have been encouraged to take part in a survey to help shape a new national registration service for Wales.

The Welsh Revenue Authority is seeking views on what they want and need in preparation for the new Visitor Accommodation Bill being passed.

If it is passed into law, it will become a requirement for all visitor accommodation in Wales to be registered, whether it is a camping pitch, caravan, holiday lodge, Airbnb or a hotel.

The register will then be used by county councils, like Powys, if they choose to introduce a visitor tax or levy.

The 13-question survey can be found on the Welsh Government’s website: https://surveys.wra.gov.wales/s/NR-VAP-june2025/

Or through the Have Your Say Powys site: https://www.haveyoursaypowys.wales/hub-page/powys-county-council

“We know there are many providers of tourism accommodation in Powys that will be affected if this new law is passed, as expected, by the Senedd,” said Councillor James Gibson-Watt, Powys County Council’s Cabinet Member for a More Prosperous Powys. 

“This is your chance to help shape how a national registration service would work, if you are one of them, so I would urge you to take it.”

The consultation closes on Friday, July 18.

More information on the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill: https://www.gov.wales/VisitorLevy