On 18 September 2025, the Act allowing councils to introduce an overnight visitor levy to raise funds for local tourism received Royal Assent.
Contents
Summary
The Visitor Accommodation Act is Wales' first locally-designed tax for 500 years, enabling councils to invest proceeds in tourism infrastructure like toilets, footpaths, beaches, and visitor centres.
Background
Our ambition is to grow tourism by supporting local communities in a way that is sustainable.
You can read the full text of the Bill and explanatory memorandum.
As part of the Act, registration of all visitor accommodation providers in Wales will start in 2026. Support will be available to accommodation providers throughout the registration process from the Welsh Revenue Authority
Research
When developing the legislation, we set out the impact a levy is likely to have. All impact assessments have been published here and an explanatory memorandum and regulatory impact assessment for the legislation is published on Senedd pages.
Provided alongside impact assessments and other research, is a compendium of data sources on visitor and accommodation numbers for different types of establishments (Serviced, Self-Catering, Camping/Caravan, Hostels). These figures provide some useful context in which to start framing insights into potential revenue generation and implementation costs.
An overview of the tax systems facing the visitor economy in selected countries
We commissioned research to understand the different tax systems facing the visitor economy in general, and the accommodation sector in particular, in countries with similar economic and tourism characteristics to Wales. This will help us to understand the relative tax burdens facing the tourism industry in other countries, and how the proposed levy would interact with these.
Research by Bangor University was commissioned in summer 2023 to review international evidence on the non-economic impacts of a visitor levy. This was part of the development of visitor levy legislation, a Programme for Government commitment.
Research on elasticities relevant to a visitor levy in Wales
Engagement has also highlighted concerns about how a levy will impact visitor and supplier behaviour. In response to this, we commissioned a review of the existing research on this topic. The research is examining the evidence on the responsiveness of visitor demand and suppliers to changes in the price of tourism (‘the price elasticities’) and changes in visitor demand to changes in visitors’ income (‘the income elasticity of demand’).
Preliminary findings have been used to inform our understanding of the potential impact of the levy.
Analysis of the demographics of the accommodation sector in Wales
We also commissioned the Office for National Statistics to produce an analysis of the demography of accommodation sector in Wales. The Welsh Government will use the data to inform understanding of the potential impact of the levy, and to support any evaluation activity taken forward.
Consumer research
The research was designed to obtain the views of Welsh residents and UK domestic holiday consumers on the potential discretionary visitor levy. It has explored opinions on whether visitors should contribute via a levy, are willing to pay a levy and if they would change their behaviour if a levy was introduced.
More than 2,500 respondents completed the survey; 1,005 lived in Wales. The results reflected broad support for the principle of a visitor levy. The research found that respondents to the survey were more positive than negative when introduced to the concept of a visitor levy in a place where they go on holiday or in their area. 45% were positive, and 25% were negative and positivity increased amongst people with lots of tourism in their area.
Those surveyed broadly supported the principle of a visitor levy. A majority (58%) of respondents agree that tourists should contribute towards the costs of maintaining and investing in the destinations they stay in, rising amongst people with lots of tourism in their area – in Wales (66%) and the UK (72%) with 13% disagreeing.
Visitor levy research: views of consumers and residents
Consultation
Details of the outcome of the consultation which ended on 13 December 2022 can be found here.The consultation explored the proposed design of the visitor levy. In December 2022, we commissioned an independent analysis of responses to the consultation in December 2022. This work was undertaken by Alma Economics.