Visitor Levy for visitor accommodation providers: technical guidance - How the levy can be used

Where a principal council has introduced the levy, they will need to keep a separate account to hold the proceeds of Visitor Levy that is paid to them by the WRA.

WRA will pay the proceeds of the levy that it has actually collected each financial year by:

• 30 June in the following financial year, or
• another date that is agreed between the WRA and that principal council

For example, the WRA will pay the levy it has actually collected between 1 April 2029 and 31 March 2030 to principal councils by 30 June 2030, or another date agreed between the WRA and principal councils.

The WRA will incur operational costs and disbursements in connection with its role of collection and management of Visitor Levy.

The WRA will deduct costs it has incurred during the financial year, before paying the proceeds to principal councils. The WRA may also deduct amounts to cover costs it may incur and disbursements that may become payable in relation to that financial year but arising after it has paid the principal council the levy proceeds.

The Tax Collection and Management (Visitor Levy Costs) (Wales) Regulations 2026 cap the amount that the WRA is able to deduct for costs and disbursement at a maximum of 10% of the levy proceeds or a lower percentage if the WRA costs and disbursements, when aggregated for all principal councils, are less than 10% of the total levy proceeds.

Principal councils who have introduced the levy may only use the proceeds of the levy paid to them by the WRA for the purposes of destination management and improvement in the principal council area. Destination management and improvement include:

• mitigating the impact of visitors
• maintaining and promoting the use of the Welsh language 
• promotion and supporting the sustainable economic growth of tourism and other kinds of travel
• providing, maintain and improving infrastructure, facilities and services for use by visitors, whether or not that are also used for local people

The principal council will need to publish a report every financial year it receives levy proceeds from the WRA on the use of the proceeds.

The report must contain information about:

• how much levy was collected for that financial year
• the amount of WRA deductions for costs and disbursements
• how the proceeds have been or will be used, and how that is for the purposes of destination management and improvement in that council’s area

Visitor accommodation providers will be able to view the report on the council's website and through any other manner that the council considers appropriate. It will also be made available to review for free for at least 12 months after it has been published at the offices of the council. The report will be published as soon as reasonably practicable after 30 June in the financial year following the financial year which the levy proceeds and report relate to and must be done by no later than 31 March.