Gwynedd and Conwy councils have postponed decisions on introducing a tourism tax, while Anglesey council has rejected the idea for now due to concerns about its impact on the tourism industry. The Welsh government has enacted legislation allowing local authorities to charge a fixed price per person per night starting in 2027, applicable to both adults and children. The legislation aims to enable councils to introduce the levy to support investment in tourism services and facilities.
A tourism tax would be charged to anyone staying overnight in areas that implement it, intended to cover costs incurred by local authorities due to tourism. If introduced, fees would be 75p + VAT per person per night for hostels, shared rooms, and tent pitches, while other accommodations would incur a charge of £1.30 + VAT.
Dr. Linda Osti, a senior tourism lecturer at Bangor University, has suggested that decisions regarding the tax should be made at a more localized level rather than a uniform approach across counties. She noted that different areas have varying visitor profiles and conditions, which should be considered when determining the levy.
Earlier this month, regional mayors in England were granted new powers to impose an uncapped levy on overnight stays. Dr. Osti indicated that the English system appears more flexible, allowing local authorities to set percentages, exemptions, and duration of charges.
Anglesey council confirmed it would not introduce the tourism tax at this time, citing a public consultation that garnered over 2,000 responses, with concerns about increased costs for visitors and the island's competitiveness. Gwynedd council is delaying its decision to analyze nearly 7,000 consultation responses, which showed mixed reactions, with more support from residents but higher opposition from visitors and businesses.
In Conwy, council members also deferred their decision, citing concerns over potential reduced bookings and visitor spending amid economic pressures. Some local business owners, like Bethan Evans of Dolgamedd caravan park, support the tax to help manage the impact of tourism on local infrastructure. However, others, including Nicky Williamson of the Professional Association of Self-Caterers UK Cymru, view the pause as a positive response to the concerns of tourism businesses.
Cardiff council is currently the only local authority in Wales planning to implement the visitor levy in 2027. The Welsh government has stated that local authorities can decide whether to introduce the levy and how to allocate the generated funds, which are earmarked for tourism promotion, Welsh language initiatives, and infrastructure improvements. The current fee structure is fixed, but councils may adjust charges in the future following consultations and notice periods.