The Welsh Government is advancing with plans to introduce a visitor levy, commonly referred to as a tourism tax, set to take effect by 2027.
This tax will apply to all overnight stays in Wales, with two distinct charge levels. Individuals staying in hostels or on campsites will be charged 75p per person per night, while those in other types of accommodation will pay £1.25 per person per night.
For businesses in the outdoor hospitality and accommodation sectors, such as campsites and glamping providers, the tax could impact operational costs and booking rates.
Additionally, the new legislation will require all accommodation providers to register their properties, including those offering short-term lets like Airbnb.
This will create a publicly accessible register, aimed at consolidating accommodation data across Wales.
Failure to comply with the registration requirements could result in penalties for providers. A fixed £300 fine will be imposed on those who either fail to register their property or provide inaccurate details.
If the error is not corrected within 30 days, an additional daily fine of £60 will accrue. These penalties may be pursued as civil debts if unpaid.
Finance Secretary Mark Drakeford addressed the delay in penalty details during a recent Senedd committee session, explaining that the registration and visitor levy bills are being processed simultaneously.
He emphasized the need for timely action, as delays could hinder the legislative process.
“I didn’t want to see more delays, because delays create problems for us in trying to get both Bills through the process that we have here the Senedd, in the time that we have left,” he told Wales Online.
The introduction of the tourism tax, coupled with the need for comprehensive registration, highlights the growing trend of governmental regulation in the hospitality sector, specifically targeting short-term rental markets.
The specifics of how local authorities will implement the visitor levy remain to be finalized, as each of Wales’ 22 councils will have the discretion to adopt or reject the tax.
Additionally, there will be provisions for some exemptions regarding personal information on the registration document, ensuring privacy for individuals who offer home-based accommodations.
This move is part of a broader shift towards more structured regulation of accommodation providers in Wales, and business owners in the outdoor hospitality and short-term rental sectors should stay informed on these developments to ensure compliance and avoid potential penalties.