Even Little Ones Will Pay Tourism Tax in Wales

Visitors to picturesque locations such as Tenby in Pembrokeshire might face an additional cost under new proposals. The Welsh government has turned down suggestions to exempt children from a proposed 1.25 per night tourism tax.

Under the plan, guests would be charged at hotels, bed and breakfasts (B&Bs), and self-catering accommodations, with hostels and campsites paying 75 pence instead. The introduction of this fee is subject to a new law being passed by the Senedd, with potential charges starting as early as 2027.

Finance Secretary Mark Drakeford emphasized that excluding children from the tourism levy would result in a “significant fall” in revenue during his testimony at the Senedd’s finance committee regarding the Visitor Accommodation Bill. When questioned by chairman Peredur Owen Griffiths, he stressed that the charge was affordable, likening it to less than a cup of coffee.

“I’ve said from the very beginning that this is a broad-based tax with a low charge,” Drakeford explained. “If you narrow the base, the only way you can sustain the take from the tax is to put the charge up.”

The Welsh government argues that funds raised through this tax will support services in popular tourist areas, but critics are concerned it could deter visitors.

This proposal emerged as part of a cooperation agreement signed between Labour and Plaid Cymru in 2021. However, Luke Fletcher from the Plaid economy spokesperson has argued for exemptions to avoid “unintended consequences.” He suggested that these should ensure affordability for larger families and encourage opportunities for children’s educational trips, carers, accompanying adults, and those needing emergency or temporary accommodation.

The Welsh Conservatives have criticized the policy as potentially harmful to the tourism sector. If approved by legislation in the Welsh Parliament, officials believe April 2027 could be the earliest date this tax is implemented. Councils may charge more through a consultation process if they give notice twelve months beforehand.

While not all councils are expected to implement this tax, it is estimated that those who do could generate about 33 million annually. The plan excludes stays longer than 31 nights and individuals in temporary or homeless accommodation from the fee.

Officials aimed for simplicity when formulating the tax policy, applying the same rate for adults and children. However, some tourism operators have expressed concerns that it may deter visitors to Wales, while other groups like scouts are worried about its impact on children holidaying there.