The Visitor Levy: how we can all benefit

By charging visitors a small amount for overnight stays, the visitor levy will give local authorities extra money to invest in local tourism. This benefits residents, businesses, and visitors. It will ensure a fairer, more responsible approach to tourism.

The earliest this could happen is 2027. Councils must consult their local community and give at least 12 months notice to residents and businesses before a visitor levy can be introduced.

The visitor levy could raise as much as £33 million a year across Wales to invest in our communities and tourism if all councils introduce a levy.

Each local authority will have the power to choose whether to introduce a visitor levy in their area. This will ensure decisions are made by local communities, based on their local circumstances.

If a local authority decides to introduce a visitor levy, they must set up a forum with tourism businesses and organisations. It will advise how the funds raised are used. This will encourage a collaborative approach between councils and the tourism sector.

New funds raised from the levy will promote the reputation of destinations and enhance the quality of life for residents. A visitor levy has the potential to make a significant and visible difference.

Investment could support projects that benefit everyone who lives in, works in, or visits Wales, including:

• Promoting the Welsh language and culture in ways that celebrate and preserve Wales's unique heritage.
• Maintaining and improving infrastructure used by both residents and visitors. This could include footpaths, tourist information centres, public toilets, and car parks.
• Environmental projects that protect Wales's natural beauty.
• Accessibility projects that make destinations more inclusive and accessible to all.
• Support for sustainable tourism that benefits local communities.
• Support for regenerative tourism that protects the environment for the long term.
• Training to give local people employment opportunities in the tourism sector.

Accountability is built into the system. Each year, local authorities will publish a report showing:

• How much revenue has been collected
• How it has been spent in their area.

These reports will be available online. Residents, businesses, and visitors will be able to see the impact of visitors’ contributions.

Local authorities in Wales can now choose whether to introduce a visitor levy. In enabling councils to introduce a visitor levy, Wales has joined leading holiday destinations around the world. Examples include France, Greece, Portugal, and New Zealand. Visitors will be helping protect what makes Wales special.

Successful international examples include:

• Balearic Islands: Since 2016, its levy has funded 168 projects totalling €263 million, including 27 green initiatives in 2023. More than 17 million tourists help to maintain beaches, facilities, and natural habitats.
• Catalonia and Barcelona: €72 million has strengthened infrastructure, preserved heritage, and championed sustainable travel. Funds go straight to improving Barcelona, supporting local culture, and boosting community projects.
• Iceland: A visitor levy funds preservation of trails, conservation, and restoration of historic sites.
• UK: Manchester’s £1-a-night City Visitor Charge generated £2.8 million in its first year—funding new events and boosting the local economy. Edinburgh, Glasgow, Aberdeen and other areas in Scotland are planning for a visitor levy. More UK cities are set to follow suit.

For more information about visitor levies overseas around the world see: Review of impacts of visitor levies in global destinations.