REVEALED: How much Labour’s £33million 'toxic' tourist tax just added to YOUR holiday in Wales

Keir Starmer: Wales has carried the torch for the entire Labour Party
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Adam Hart

By Adam Hart


Published: 02/04/2025

- 13:28

Updated: 03/04/2025

- 10:28

It will be up to Wales' predominantly Labour-run councils to decide if they want to impose the levy

Labour’s plans to tax holidays in Wales took a major step towards becoming law on Tuesday night (April 1), despite warnings it will hit the poorest families the hardest and damage tourism in Cymru.

Welsh Labour's Visitor Levy Bill, which has been widely dubbed the ‘tourist tax’, passed by 40 votes to 15, with Labour, Plaid Cymru and the Lib Dems in support. Only the Conservatives opposed.


The levy, which could raise up to £33million a year, will see adult visitors to Wales charged £1.30 per night to stay in hotels and Air BnBs and 80p per night for campsites and hostels.

It means a family of four holidaying in an AirBnB for a week will have to pay £36.40 in fees. For a group of eight, this rises to £72.80.

For four adults holidaying in a hostel or campsite for a week, the visit will cost an extra £22.40. For eight adults, this rises to £44.80.

Tourism tax potential costs for holidays in Air BnBs and hotels

Tourism tax potential costs for holidays in Air BnBs and hotels

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Tourism tax potential costs for holidays in campsites and hostels

Tourism tax potential costs for holidays in campsites and hostels

GBN

Tourism tax potential costs for holidays in Air BnBs and hotels

Tourism tax potential costs for holidays in Air BnBs and hotels

GBN

Tourism tax potential costs for holidays in campsites and hostels

Tourism tax potential costs for holidays in campsites and hostels

GBN

The levy has been heavily criticised for hitting the poorest families the hardest as the cost-of-living crisis worsens after Chancellor Reeves’ disastrous budget failed to spark growth.

Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS, said: “Labour and Plaid’s toxic tourism tax will hit the poorest families the hardest.

“On the same day that energy, water and council tax bills all rise substantially for families across Wales, Labour Ministers have chosen to vote through a new tax on domestic family holidays. They are completely out of touch.

“The Welsh Conservatives will not rest until we axe the tax and renew the case for a pro-tourism, pro-business and pro-family tax policy from the Welsh Government.”

Tenby

Visitors to Tenby, a tourist hotpsot in Pembrokeshire, will have to pay £1.30 per night under Labour's plans, which equates to £9.10 for a week's visit

Getty

There are also concerns the levy will impact Tourism, a vital part of the Welsh economy which accounts for 12 per cent of all employment in Wales.

Leading trade body UKHospitality Cymru, which represents over 130,000 hospitality venues in Wales, warn the tax is a “blinkered” decision that will continue to disincentivise families – many who live in Wales - from holidaying in Wales.

They advocate for any funds raised from the tax to be 'ring-fenced for spending on the hospitality, tourism and visitor economy' and 'not be funnelled into day-to-day council spending' which includes enormous council chiefs' salaries and pension payments.

The Welsh government have exempted under-18's from paying the tax if they are staying in campsites or hostels, but not if they are staying in hotels or AirBnBs, a decision signled out by UKHospitality Cymru.

David Chapman, Executive Director of UKHospitality Cymru, said: “Families across the UK spend many months saving up their hard-earned money to take their families on a summer holiday, with Wales one of the top choices for those staying in the UK.

“Very many of these families will prefer to do so in a hotel, B&B or self-catering, with campsites or hostels simply impractical for many with young children.

“It is a blinkered decision to retain the Visitor Levy’s child tax on hotel stays. The total cost of the levy for a family of four could be the equivalent of a night’s stay in a hotel. That’s either unaffordable for many, or enough to put them off visiting Wales.

“I have no doubt that the Welsh Government is trying to do the right thing though this partial exemption, but it’s revenue-driven and ends up creating a two-tier holiday offer in Wales, which punishes families and businesses alike.

“The Welsh Government should heed the call of UKHospitality, Welsh Local Government Association and others, and introduce a total exemption for under-18s.”

Monmouthshire resident Helen Fawcett who recently ran an Airbnb said: “We despair daily about the crazy ideas coming out of Cardiff.

“They should be promoting Wales, not shutting it down. A room tax will further deter people from visiting.

“People will feel unwelcome, and it will again impact rural businesses, many of whom are farmers trying to diversify by renting rooms.

“So much for a welcome to Wales!”

LATEST FROM MEMBERSHIP:

Council tax rises across Wales

Council tax rises across Wales

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It will be up to Wales’ 22 councils to decide if they want to impose the tax, but it is widely expected all will do so as Wales’ authorities are scrambling to raise more cash as costs soar.

All 22 councils are raising council tax by an average of £145 for 2025/26, with Ceredigion (£192 rise), Conwy (£185) and Flintshire (£184) having some of the largest hikes in Britain.

Furthermore, Labour controls the most councils in Wales (seven) and runs minority administrations in most of the nine councils under ‘no overall control, meaning they are likely to implement their party’s legislation from the Senedd.

Three other councils in tourist hotspots of Ceredigion, Gwynedd and Anglesey are controlled by Plaid Cymru whose Senedd members also backed the bill last night.

Defending the decision, Finance Minister Mark Drakeford argued the charge is too small to deter people from visiting Wales.

He pointed to the nightly charge costing ‘less than a sausage roll’, ‘half a cup of coffee’ or ‘bottle of water’.

"I don't believe for a single moment that paying this modest levy will put people off from everything that Wales has to offer.

"This modest bill will do good, it will offer choice to people,” he argued.

Mr Drakeford argued visitor levies were not radical, highlighting 50 or so countries already use them.

The former First Minister also argued tourists who benefit from Wales’ infrastructure and services should help maintain them to keep Wales as a compelling destination to visit.

"It is simple, straightforward and fair. A flat rate levy, as we propose, is simple to understand, it's clear to visitors and providers alike," said Mr Drakeford.

“Moreover, it is straightforward to administer. Most small businesses will only be required to submit one annual return, and all businesses will have the choice of making that return through an agent.

"It allows local authorities to decide whether or not to introduce a visitor levy in their areas, reflecting local needs and circumstances.”

During yesterday's Senedd debate, Mr Drakeford also announced the charge would be rising by 5p for Air BnB and hotels to £1.30 and by 5p for hostels and campsites to £0.80.

This is so the Welsh government can exempt under 18’s from the charge after concerns were raised from scout groups and school trips visiting Wales.

The Bill will now progress to the amendment stages in the Senedd for two further votes before it becomes law. It is not expected to be in place before 2027.

The Welsh Government says: “Similar levies are in place or have been proposed in other parts of the UK including Scotland, Manchester and Bournemouth, and they are used successfully in over 50 countries across the world.

"They have a positive impact and ensure everyone makes a small contribution to support the area they are visiting.”