Technical Visitor Levy guidance for visitor accommodation providers - What is visitor accommodation

Visitor Levy is payable on overnight stays in visitor accommodation in Wales, in an area where the levy applies. Visitor accommodation is broadly defined, and the guidance below covers different types of accommodation, and whether it is classed as visitor accommodation or not.

Visitor accommodation includes accommodation:

• in a hotel, guesthouse, bed and breakfast or similar accommodation type
• in a youth hostel, bunkhouse or similar accommodation type
• at a holiday park or holiday resort, such as lodges, chalets and cottages

Visitor accommodation includes a pitch or area that is provided for:

• camping
• mobile homes that are not permanently or semi-permanently situated in one place

Where a mobile home is permanently or semi-permanently situated in one place, the pitch or area it sits on is not classed as visitor accommodation. However, the mobile home itself may be classed as visitor accommodation if it is sub-let to visitors on a short-term basis for the purposes of business, leisure travel or educational trips. See guidance on offering short-term visitor accommodation for more detail.

Example of a camping pitch as visitor accommodation

Agatha has a campervan and books a pitch for 10 days at a caravan park. As Agatha has booked a pitch for her campervan, the pitch itself is classed as visitor accommodation because that is the area booked, and her campervan will only be situated on the pitch for a period of 10 days.

Example of a car park as visitor accommodation

Thomas has a caravan and parks it overnight in a car park that has specific permissions to allow mobile homes to park overnight, as long as they pay an overnight fee. As Thomas has parked in an area of the car park provided for his mobile home for an overnight stay, the area is classed as visitor accommodation.

Example of a campervan staying on a camping pitch

Zach is travelling through Wales and books a pitch for his campervan at a caravan park and will stay there for 5 nights. The visitor accommodation provider will be liable to pay the levy for Zach's stay at that pitch.

The visitor accommodation provider will need to register and fulfil their Visitor Levy obligations.

Example of renting seasonal pitches

Flint rents a seasonal pitch at a caravan park each summer, and he is allowed to tow his caravan on and off the site during the season without any restrictions. However, his agreement does entitle him to keep his touring caravan there all season and for him to stay there, if he wants to.

Flint regularly takes his touring caravan to the site and parks it for a few nights and then leaves, taking the caravan with him. As Flint is entitled under his contract with the caravan park operators to stay there all season, the levy will not apply when Flint does stay at the park, even though the pitch would be visitor accommodation. This is because his contract entitles him to stay at the park for more than 31 nights (and they do not need to be consecutive nights for the rule to apply) so there are no overnight stays for Visitor Levy purposes.

Mobile home is defined for Visitor Levy as any:

• motor vehicle designed or adapted for human habitation, and
• structure that is designed or adapted for human habitation which is capable of being moved from one place to another, whether it is moved by being towed or transported on a motor vehicle or trailer does not matter

Therefore, static caravans and other structures still fall within the definition of “mobile home” when considering the Visitor Levy. Caravans, campervans and other moveable homes also fall within the definition of mobile homes.

The term mobile home specifically does not include:

• tents
• railway rolling stock forming part of the railway system
• aeroplanes
• vessels

Vessels mean ships, boats, rafts or other apparatus constructed or adapted for floating on water and designed or adapted for human habitation.

Visitor accommodation includes certain accommodation types that are offered on a short-term basis.

For Visitor Levy, accommodation is offered on a short-term basis to visitors if the visitor accommodation provider offers to provide the accommodation for stays that are 31 nights or less. It does not matter whether the visitor accommodation is permanently or occasionally offered on a short-term basis.

It does not matter if the nights are consecutive or not, the key aspect is that stays are offered for 31 nights or less.

The following types of accommodation will be visitor accommodation if they are offered on a short-term basis and for the purposes of business or leisure travel or educational trips:

• accommodation in a mobile home, vessel or other vehicle that is permanently or semi-permanently in one place
• self-catering accommodation
• any other kind of accommodation, that does not fall into any categories above

For mobile homes, these circumstances will most often apply to static structures that remain in a fixed location for substantial periods and are more likely to be connected to running services or may have additional anchor features such as decking or balconies. Whilst these structures are technically capable of being moved, they rarely will be.

Example of a static caravan as visitor accommodation

Elliot books a holiday in Wales and contracts to stay in a static caravan. The caravan can be booked for trips up to 25 nights only and is made available most of the year for visitors travelling for leisure or business purposes. The static caravan is the visitor accommodation in this scenario. It is permanently situated in one place, and it is offered on a short-term basis for leisure or business use.

Example of a houseboat as visitor accommodation

Ash books to stay in a houseboat that is permanently anchored in one location. The houseboat can be booked for a maximum of 4 weeks and is made available during spring and summer for leisure guests. The houseboat is the visitor accommodation in this scenario, as it is permanently situated in one place and it is offered on a short-term basis for leisure.

Example of letting a static caravan

Owain owns a static caravan which sits on a pitch all year and is connected to services. Whilst it is still technically movable, it will be visitor accommodation if Owain offers it to third parties on a short-term basis i.e. it is advertised or marketed as available for stays of 31 nights or less (whether or not those nights are consecutive).  

Where Owain uses the caravan solely for himself and his family members, it would not be classed as visitor accommodation as Owain would not be a visitor accommodation provider and there is no contract between him and his family members for when they stay. 

Example of subletting a caravan on a residential caravan park

Austin lives on a residential caravan park. He pays an annual fee to the park operator and lives in his caravan for 11 months of the year. The caravan is his main residence. This will not be classed as visitor accommodation for the levy because Austin lives in the caravan for most of the year and he does not offer it to others for stays on a short-term basis.

However, if Austin sub-lets the caravan to visitors for stays of 31 nights or less for business, leisure or educational trips, the caravan would be classed as visitor accommodation. In this situation, Austin would be the visitor accommodation provider and would need to meet his levy obligations.

Example of a caravan park as a short-term let

Julia runs a caravan park which has 12 static caravans. Julia takes bookings for each of the caravans for stays of 31 nights or less for business and leisure trips. Whilst the caravans are permanently in one place, they are classed as visitor accommodation because they are being offered to visitors on a short-term basis.

If Julia was to only take bookings for her static caravans for stays of more than 31 nights, the levy would not apply to those bookings.

Mobile homes, which include static caravans and similar, that are permanently or semi-permanently situated in one place can themselves be classed as visitor accommodation if they are sub-let on a short-term basis by a visitor accommodation provider.

Where the owner of a mobile home plans to sub-let the mobile home to other visitors, then the levy will apply as long as:

• the mobile home is offered on a short-term basis, which means 31 nights or less (which do not need to be consecutive), and
• the stays are for business, leisure travel or educational trips 

Example of a semi-permanent caravan

Horace pays for a seasonal pitch at a caravan park. He parks his own touring caravan there for 9 months of the year and connects it to the site services. As the caravan is semi-permanently at the caravan park, the pitch it sits on is not classed as visitor accommodation. When Horace stays in his caravan, the levy will not apply.

Horace considers sub-letting the caravan to raise additional income for himself. If Horace does enter into agreements with leisure travellers to sub-let the caravan for stays of 31 nights or less during that 9-month period, then the caravan will be classed as visitor accommodation. In this case, Horace is the visitor accommodation provider and will need to register and meet his levy obligations.

Example of privately owned caravans

Tanya runs a caravan park. On the park there are 8 static caravans which she owns, and then 6 other static caravans which are privately owned. Those private owners pay an annual fee to Tanya for their caravan pitches.

Tanya allows short term stays in the caravans she owns, with a maximum stay of 21 nights. She is a visitor accommodation provider and will need to fulfil her registration and levy obligations in respect of her static caravans.

The privately owned static caravans which are permanently at the park are not within the scope of the levy, unless they are sub-let on a short-term basis for business, leisure or educational trips. If a private caravan is sub-let, the visitor accommodation provider responsible for that caravan will need to ensure they meet their registration and levy requirements.

Example of a caravan parked on a seasonal pitch

Gilly has a touring caravan and she pays a fee for a dedicated seasonal pitch at a caravan park. As the caravan is parked there throughout the season, the pitch is not classed as visitor accommodation and the levy does not apply when Gilly is using her caravan.

Gilly allows family members to sometimes use the caravan over the season while she is away. As Gilly is not a visitor accommodation provider and not entering into contracts with her family to allow overnight stays, the levy does not apply.

Gypsy and Traveller site

Accommodation that is on a Gypsy and Traveller site will not be classed as visitor accommodation for Visitor Levy. A Gypsy and Traveller site means land that is wholly or mainly used to park mobile homes that provide accommodation for:

• people of a nomadic habit of life, regardless of their race or origin, and
• any other people with a cultural tradition of nomadism or of living in a mobile home

People of a nomadic habit of life, would include:

• people who have ceased to travel temporarily or permanently due to their own, their family’s or dependents educational needs or old age, and
• members of an organised group or travelling show people or circus people, whether or not they are travelling together

Mobile homes, vessels or other vehicles

Accommodation in mobile homes, vessels or other vehicles only counts as visitor accommodation in its own right where it is permanently or semi-permanently situated in one place and offered, whether all the time or occasionally, on a short-term basis for business, leisure travel or educational trips.

A pitch or area for a mobile home will only count as visitor accommodation where it is provided for a mobile home that is not permanently or semi-permanently situated in one place.

Example of living in a static caravan

Polly lives in a static caravan on a residential caravan park as her main residence. She pays a monthly pitch fee and is entitled to live in the caravan all year round. The caravan is not visitor accommodation because although it is permanently situated in one place, she does not offer it to rent for short term business, leisure travel or educational trips as it is her home.

The pitch on which the caravan stands is also not visitor accommodation as it is provided for a mobile home that is permanently situated in one place.