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Overnight Visitor Levy (aka. “Tourist Tax”)

Owen Donovan by Owen Donovan
September 3, 2026
in Finance & Tax, Issues
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Overnight Visitor Levy (aka. "Tourist Tax")

Is this devolved to Wales?

Devolved

The necessary powers are not reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006.

Shared Powers

Insert a specific explanation of the powers situation for this issue here.

Not Devolved

The powers over this are reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006 (Specific Section/Number/Clause).

Where is this happening?
National
What's happening?
Why is this happening?
Who has been affected?
What's happening?

In July 2025, the Senedd passed the Visitor Accommodation (Levy and Register) Act.

The law will create a register of visitor accommodation providers.

It also introduces a levy/tax which will be charged to anyone staying in visitor accommodation overnight. This has been set at two levels. The lower rate (75p-per-night) will apply to camping pitches and hostels/dormatories. The higher rate (£1.30-per-night) will apply to all other forms of accommodation.

On 8th July 2026, the Senedd rejected a non-binding motion from Reform UK calling for the levy to be scrapped.

Why is this happening?

There have been long-standing concerns about the impact of over-tourism on rural and coastal Wales, but also in cities that host major events (particularly Cardiff). While tourism may bring in extra money for businesses, no additional funding is provided to councils.

Money raised by the levy will be retained by local authorities. While they will have the freedom to use this money however they want, it’s suggested councils will use it to cover some of the negative costs linked to tourism, but also to invest in tourist facilities.

Who has been affected?

Under the law, individual local authorities will decide whether to charge the levy in their areas. As of August 2026, only Cardiff Council have confirmed they will apply the levy.

Consultations have been undertaken in Anglesey, Gwynedd and Conwy and all three authorities have decided either against introducing the levy, or postponing a decision.

Charts (if needed)
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Costs & Economic Impact

Enter your description
£ 00 million Total
  • Cheese
  • Explanation
  • Etc
Who has raised this at the Senedd?

Elin Jones MS

Finance Minister

Adam Price MS

Enterprise & Energy Minister

Anna Nicholl MS

Backbencher

Elwyn Vaughan MS

Chair: Economy & Energy

Louise Emery MS

Shadow Culture Minister

John Clark MS

Backbencher

Sarah Edwards MS

Backbencher

Steven Senior MS

Shadow Education Minister

Huw Thomas MS

Backbencher

Shav Taj MS

Backbencher

Paul Davies MS

Conservative Whip

Elin Jones MS

Finance Minister

Adam Price MS

Enterprise & Energy Minister

Anna Nicholl MS

Backbencher

Elwyn Vaughan MS

Chair: Economy & Energy

Louise Emery MS

Shadow Culture Minister

John Clark MS

Backbencher

Sarah Edwards MS

Backbencher

Steven Senior MS

Shadow Education Minister

Huw Thomas MS

Backbencher

Shav Taj MS

Backbencher

Paul Davies MS

Conservative Whip

What are the party positions on this?
Plaid Cymru
  • Supports the levy
  • Opposed
  • Neutral/No Opinion

Plaid Cymru backbenchers support the levy, pointing to its introduction in parts of England and Scotland.

The truth is that tourism taxes are common worldwide, including in Amsterdam, Venice, Barcelona and Paris, some of the cities with the greatest influx of tourists in the world. And of course, by now, there are great parts of England that have this tax—and in Scotland as well—including Liverpool and Manchester. The tax does not penalise the tourism sector, rather it boosts income for local government to improve our areas, to reinvest, to improve visitor amenities in the area, improving the feel of our tourism destinations and therefore facilitating sustainable tourism.
Elwyn Vaughan MS
Elwyn Vaughan MSGwynedd Maldwyn
I fully support the Government taking steps to enable sustainable tourism that secures jobs and income into local economies and which benefits our communities, environment, language and culture. And I support measures that prevent harm. That's why I support the visitor levy as a choice for local authorities to ensure that local communities reap the rewards of tourism. Funds raised through the visitor levy enable investment in the local environment, the Welsh language and culture, and local infrastructure, which also supports tourism.
Anna Nicholl MS
Anna Nicholl MSCaredigion Penfro
Reform UK
  • Supports
  • Opposes the levy
  • Neutral/No Opinion

Reform UK oppose the levy and believe it places an unnecessary burden on the tourism industry, negatively affecting cross-border tourism with England.

A tax on visitors is a tax on the jobs that serve them, a blunt instrument that hits small, rural and coastal operators hardest....Layer a visitor levy on top of (VAT) and we're pricing Wales out of the market when we're trying to grow the sector. It's not even been implemented yet, but the perception of Wales taxing visitors, especially from England, has already had a negative impact on visitor numbers.
Louise Emery MS
Louise Emery MSClwyd
A £1.30 charge on a £50 room represents a far higher percentage increase than the same charge on a £200 room. It hits cheaper accommodation hardest, precisely the kind used by families, younger visitors and domestic tourists, the people who keep our smaller businesses alive....This levy imposes more paperwork, administration costs and responsibility. It is not progressive; it is a tax on aspiration.
John Clark MS
John Clark MSBangor Conwy Môn
Given that the Government has stated that the visitor levy is designed to create sustainable tourism in Wales, could you quantify exactly what sustainable tourism entails, and how much is it going to cost to achieve this, as the feedback from my constituents suggests that we need an impact study on the negative effects of this tax on visitor numbers?
Sarah Edwards MS
Sarah Edwards MSSir Gaerfyrddin
Labour
  • Supports the levy
  • Opposed
  • Neutral/No Opinion

Labour introduced the law in the last term whilst in government. MSs believe the levy will help cover the cost of hosting major events.

Here's the mad thing, for all the visitors that come to Cardiff....for all the money they spend in local bars, restaurants, hotels, for all the overnight clean-up operations required after 70,000 people have partied in the Principality, the council receives not one penny of income, thanks to the completely centralised taxation system we have in this country.  A visitor levy, estimated to raise about £3.5 million a year for Cardiff, starts to change that calculation so that the council raises revenue...to fund a better experience for visitors and residents alike.
Huw Thomas MS
Huw Thomas MSCaerdydd Penarth
In Cardiff, we have chosen to introduce the levy, and it will come into effect next April. Anglesey, Conwy and Gwynedd councils are currently consulting, and they will make their decisions later this year. The challenges and the opportunities around the visitor economy will ebb and flow, and all councils are free to make their decisions in the future. And that's exactly the point here: this is a great example of devolving power beyond the Senedd, taking decisions closer to the people who live there.
Shav Taj MS
Shav Taj MSCaerdydd Ffynnon Taf
Conservatives
  • Supports
  • Opposes the levy
  • Neutral/No Opinion

The Conservatives voted in favour of Reform UK’s motion calling for the levy to be scrapped. They believe it adds extra burdens onto a sector that’s come under increasing pressure.

This levy does not support business owners and it does not maintain affordability for visitors. It's also highly likely to be applied inconsistently across local authority areas, pitting one county against another and risks worsening an already fragile tourism market. And this will not just only tax tourists, it will apply to everyone who stays overnight in Wales, including people within Wales.
Paul Davies MS
Paul Davies MSCeredigion Penfro
Llywydd, the tourism sector has been overwhelmed with additional financial pressures, and rather than pause and consider the cumulative impact of all of these policies, the previous Government added more burdens on business owners, and so the new Welsh Government has an opportunity here to reset the balance.
Paul Davies MS
Paul Davies MSCeredigion Penfro
Green Party
  • Supports in principle
  • Opposed
  • Neutral/No Opinion

Green MSs haven’t said anything on this specifically, but voted against the Reform UK motion to scrap the levy.

Test Test Test
NameConstituency
Liberal Democrats
  • Supports in principle
  • Opposed
  • Neutral/No Opinion

Jane Dodds hasn’t said anything on this specifically, but voted against the Reform UK motion to scrap the visitor levy.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Jane Dodds MS
Jane Dodds MSBrycheiniog Tawe Nedd
Who is responsible?

Elin Jones MS

Finance Minister

What have ministers said?
This policy is now passed over to local authorities. They have the discretion to introduce or not the visitor levy in their areas, and there are requirements of any local authority that's interested in introducing a visitor levy to undertake assessments (of sustainable tourism).
Elin Jones MS
Elin Jones MSCeredigion Penfro
Where tourism happens, there are impacts on the local area. That's not a criticism of the sector, it's a facet of success. Visitor levies are neither unusual nor untested. They operate successfully in destinations across Europe and the world, providing resources for the very infrastructure and services that make places worth visiting in the first place. It's, rightly, for each local authority to consult and decide, but, where a levy is introduced, it's an opportunity to make the visitor economy work both for the sector and for the communities that host it, and this Government supports that model.
Adam Price MS
Adam Price MSSir Gaerfyrddin
What's being done about this?
Promises & Pledge Tracker
What do the Welsh Government want to do?
Does this need a new law or regulations?
How long will this take?
What do the Welsh Government want to do?

Plaid Cymru had a manifesto commitment to mainain the overnight visitor levy. There are no plans to change this as things stand.

The Welsh Government now considers this to be a matter for individual local authorities to consider, as they will decide whether or not to introduce a levy in their areas.

Does this need a new law or regulations?

The Visitor Accommodation (Levy & Register) Act was passed by the Senedd on 8th July 2025. This law would need to be repealed to scrap the levy.

How long will this take?

The Overnight Visitor Levy is set to come into effect from April 2027.

What have the Senedd's Committees said?

Nothing has been discussed yet.

Committee Name

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Relevant Votes
DateMotion NumberSubjectTabled AsBinding Vote?Votes ForAbstentionsVotes AgainstAbsent/No VoteOutcome
08/07/26NDM9284Amendment – Support tourist levy; keep 182-rule under review
No510385AGREED
08/07/26NDM9284Scrap the tourist levy and review 182-day holiday let rule
No380515REJECTED
Further Reading
  1. Welsh Government. “Visitor levy in Wales“

Related Issues

182-Day Occupancy Rule for Holiday Lets
Housing & Communities

182-Day Occupancy Rule for Holiday Lets

Owen Donovan
by Owen Donovan
September 3, 2026
0
Donations Welcome
Tags: CON-02FIN 01NationalPC-04-MPC-08PC-30PC-35RF-02RF-03RF-11RF-17RF-31RF-34
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