ADVERTISEMENTIt’s been a long time coming, but Wales is shaping up to become the first country in the UK to introduce a nationwide tourist tax.
Details released yesterday (Monday) indicate that the levy will add £1.25 (€1.50) per night to the price of accommodation in Wales, or £0.75 (€0.90) for visitors staying on campsites and in hostels.
The tax won’t be universally applied across Wales. Rather, different regional councils will decide for themselves whether to introduce the levy in their area.
Some exemptions have been noted too, including when lodging with family or staying for an extended period.
First floated in 2018, a public consultation for the proposed tourist tax was held in 2022. Once it’s officially passed into law by the national parliament, the new Welsh tourist tax is expected to come into force in 2027.
What will Wales tourist tax be spent on?
Taxes on visitors are nothing new, but efforts have significantly ramped up in recent years.
As long ago as 1910, France introduced its ‘taxe de séjour,’ becoming the first country in the world to do so.
Today, more than 60 destinations around the world have such a tax in place, including Barcelona, Amsterdam and, since April, Venice.
In most cases, the proceeds from such taxes are used to fund specific projects or events, market the destination, or diversify the economy of areas reliant on tourist cash.
But Wales has another plan for its tax winnings, and it’s about protecting one of the country's most unique elements.
Welsh language speakers are in decline: latest figures from the Welsh Government show that as of 30 June 2024, just 27.8 per cent of people aged three and over were able to speak Welsh.
This was the lowest percentage recorded in the last eight years - and around 1.4 percentage points lower than in 2023.
Will the tourist tax in Wales really help revive the national language?
Efforts are already underway to boost the language under the government’s Cymraeg 2050 plan, which aims to have a million Welsh speakers by 2050. To date, much of the work has focused on children, including school curriculum reforms and the promotion of Welsh-medium playgroups (Cylchoedd Meithrin).
But more efforts are needed to get to a million Welsh speakers, and the estimated £33 million raised from such a tourist tax is seen as a valuable vehicle for driving this change.
The new visitor levy could support the language “particularly within Welsh-speaking communities where tourism is considered a significant contributor to the local economy,” said the Welsh Government”.
ADVERTISEMENTHow this translates into concrete action remains to be seen, particularly given the element of local authority autonomy.
However, it also suggests that revenue could be used to “promote the visibility, vitality, and viability of the Welsh language, as well as increase the awareness and appreciation of visitors and residents alike”.
More UK cities are planning to charge visitors
The idea of making tourists pay more to directly support the local area is gaining traction across the UK.
In August this year, Edinburgh announced plans to become the first Scottish city to introduce a tourist tax, which will apply from 2026.
ADVERTISEMENTIn England, primary legislation would be required to permit a tourist tax, with neither central government nor local councils having the power to introduce such a levy.
However, other UK cities are getting in on the action via a legal workaround that could be rolled out more widely in the coming years.
Business Improvement Districts (BIDs) are partnerships operated by local businesses intended to provide additional services or improvements to a specific area.
Through this mechanism, cities can collect additional business rate payments (BID levies) from companies in that district. Several English cities have already used this to target tourism, and more are set to follow.
ADVERTISEMENTManchester introduced an ‘accommodation BID’ in April 2023, known as the ‘City Visitor Charge.’
Liverpool established a similar system at around the same time, and tourism BIDs also exist in cities including Blackpool, Great Yarmouth, and Tweed Valley.
The combined unitary authority of Bournemouth, Poole and Christchurch (BPC) revealed plans to apply a £2 per night ‘visitor charge’ this summer, although a backlash from the hospitality sector has put the plans temporarily on hold.
BPC maintains that as many as 60 other UK cities are poised to introduce levies through the BID system.
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