Welsh Government’s Visitor Levy Bill Becomes Law Amid Controversy

The Welsh Government’s controversial Visitor Levy Bill has officially become law after receiving Royal Assent from His Majesty The King. This legislation allows local authorities in Wales to impose a small levy on overnight visitors, with the funds raised intended for reinvestment in local tourism initiatives. The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was passed by the Senedd on July 8, 2023, and attained its final status as an Act on September 18, 2023.

Local councils will have the discretion to adopt the visitor levy in their respective areas, contingent on consulting with their communities. These councils will determine the allocation of the revenue generated, which may support various tourism-related projects such as enhancing public facilities, maintaining footpaths, and improving visitor centers and attractions. The Welsh Revenue Authority (WRA) will oversee the collection and management of the levy, as well as maintain a national register of visitor accommodation providers in Wales.

Implementation Timeline and Local Impact

The new law mandates that from Autumn 2026, all entities charging for overnight stays must register with the WRA at no cost. Although local authorities can opt to introduce the levy beginning in 2027, the decision to do so will vary by region. This approach aligns with practices seen in many popular tourist destinations worldwide, where similar models have proven effective in balancing tourism benefits and pressures on local communities.

Mark Drakeford, the Finance Secretary of Wales, expressed optimism about the potential impact of the levy, stating, “The visitor levy represents a small contribution that will make a big difference by helping to maintain and enhance the very attractions that make Wales such a wonderful place to visit and live.” He highlighted that this legislation equips Wales with tools already successfully implemented in various global locations to manage tourism’s effects on residents and visitors alike.

In a statement regarding the new law, Rebecca Godfrey, interim chief executive of the Welsh Revenue Authority, noted, “We’re delighted to support local authorities with the collection of the levy and implement the new visitor accommodation register.” She emphasized the WRA’s readiness to collaborate with accommodation providers to ensure a smooth transition to the new system.

Reactions from Local Authorities

Despite the broad framework provided by the legislation, some local councils have opted not to implement the levy. Pembrokeshire County Council, for example, confirmed earlier this year that it will not pursue a tourism tax during the current administration. Cllr Paul Miller, the Deputy Leader and Cabinet Member for Place, Region, and Climate Change, stated, “It’s not our intention to take forward the option of a visitor levy in Pembrokeshire during this administration.” This indicates a cautious approach among certain local authorities, reflecting varying opinions on the potential economic impact of the levy.

The introduction of the Visitor Levy Bill marks a significant shift in how Wales addresses the challenges and opportunities presented by tourism. As local authorities consider their options, the effectiveness of the levy in enhancing community resources and supporting sustainable tourism will be closely monitored.