The British Holiday & Home Parks Association (BH&HPA) has expressed strong opposition following the Welsh Parliament’s decision this week to move forward with legislation enabling local authorities to impose a tourism levy on overnight visitors.
The law, passed by the Senedd on July 23, allows councils in Wales to implement a visitor tax at their discretion, to support local infrastructure and services in tourist-heavy areas.
BH&HPA director-general Debbie Walker said the association was “gravely disappointed” by the outcome, arguing that the policy will create adverse effects for the region’s tourism economy, particularly in rural and coastal communities.
In a report by Herald.Wales, she stated that demanding a levy from adult visitors making overnight stays on campsites and parks in Wales will pose a threat to many of their futures.
Walker emphasized that the tax may lead to reduced visitor numbers, affecting not only holiday parks but also nearby small businesses such as pubs, shops, cafes, and tourist attractions that depend on tourism for survival.
She said many of these businesses are family-owned and provide vital employment in parts of Wales where job opportunities are already limited.
She warned that price-sensitive families, a core segment of the traditional holiday park customer base, would face increased financial pressure.
“One of these [unintended consequences] will inevitably be a rise in wild camping, which will mean local councils having to deal with litter and human waste in parts of Wales’s most beautiful countryside,” Walker added, noting that this could increase operating costs for holiday parks and local councils alike.
Walker also expressed concern that the tax could prompt families to choose other parts of the UK or look overseas for better value.
“Larger families with children will be especially hard hit, and are likely to make some parents think twice about enjoying a break in Wales,” she said.
“The levy will also make the prospect of an overseas holiday even more appealing as many of our European competitors have VAT set at around half of our 20% rate.”
The BH&HPA announced it will launch an “urgent lobby” effort targeting local authorities in Wales, each of which retains the discretion to implement or forgo the tourism charge.
As this policy framework takes effect, holiday park owners and outdoor accommodation providers are being encouraged to engage with their local councils and trade associations to voice concerns and prepare for possible operational changes.
For business owners in the outdoor hospitality sector, this development underscores the importance of actively monitoring policy changes that impact visitor costs and consumer decision-making.
Stakeholder engagement and collaboration with local government may prove essential in shaping how and where the levy is introduced, and in mitigating its potential impact on occupancy rates, pricing strategies, and community relations.