The Welsh Government has passed new legislation giving local councils the authority to introduce a charge on overnight stays. This move applies not only to hotels and guesthouses but also to short-term lets such as Airbnb and similar platforms.
The measure has been described as a “visitor levy” and, if implemented, would mean guests staying overnight in Wales could face an extra charge on top of their accommodation costs. Local councils will be responsible for deciding whether or not to apply the levy in their area.
Any money raised through this scheme will be used specifically for tourism-related purposes. Councils may choose to allocate the funds towards maintaining public spaces, improving infrastructure, or supporting community projects that directly benefit both visitors and residents.
To ensure the process is handled consistently across Wales, the Welsh Revenue Authority (WRA) will be tasked with collecting and managing the levy on behalf of councils. The WRA will also oversee the administrative side, ensuring the system runs smoothly.
In addition to the levy, the law introduces a new requirement for all visitor accommodation providers in Wales to be listed on a national register. This register will be managed by the WRA and is intended to improve oversight of the sector.
The Welsh Government has argued that the register will help build a clearer picture of how tourism operates across the country. It will allow councils, government bodies, and local communities to access more reliable data when making decisions about planning, housing, and the use of local services.
According to official announcements, the register is expected to be introduced in the autumn of 2026. From this point onwards, any business or individual charging visitors to stay overnight will need to ensure their accommodation is listed.
The visitor levy itself, however, will not come into effect until sometime in 2027. No specific date has yet been confirmed, but accommodation providers have been advised to prepare well in advance to avoid disruption when the levy is implemented.
Welsh Labour’s finance secretary, Mark Drakeford, has defended the legislation, describing it as an important step forward. He said that the levy would represent only a small additional cost for tourists but would make a meaningful difference to the upkeep of Wales’ most popular attractions.
Mr Drakeford added that the legislation gives Wales the same powers used by many other tourist destinations around the world. The aim, he explained, is to strike the right balance between encouraging tourism and protecting the quality of life for local communities.
Supporters of the scheme believe that the money raised could help maintain natural landscapes, cultural heritage sites, and public facilities, which are often under pressure from high visitor numbers. This, in turn, could benefit both visitors and those living in Wales year-round.
Rebecca Godfrey, the interim chief executive of the Welsh Revenue Authority, also expressed her support for the changes. She said her organisation is ready to help local councils with the collection of the levy and the implementation of the new accommodation register.
She emphasised that the WRA already has experience managing devolved taxes in Wales, meaning it is well equipped to handle this new responsibility. Ms Godfrey also reassured accommodation providers that the WRA will work closely with the industry to ensure the transition is as smooth as possible.
The visitor levy has been described as “historic legislation” for Wales, signalling a stronger approach to managing tourism. By introducing both a levy and a register, the government hopes to achieve a more sustainable balance between economic benefits and community needs.
Overall, the Welsh Government’s approach reflects a broader global trend. Many tourist destinations are now introducing similar measures to make tourism more sustainable, ensuring that the income generated directly supports the places people travel to enjoy.