Tourism tax needs to be more flexible in Wales, warns expert

Last week, Anglesey council rejected introducing the visitor levy for now, over concerns for its tourism industry, while Gwynedd and Conwy councils both postponed making any decision on the nightly fee.

It is down to local authorities to decide whether they want to introduce the Welsh government legislation - meaning from 2027 a fixed price can be charged per person, per night - and applies to both adults and children.

The Welsh government said the legislation allowed for decisions to be taken at a local level, with councils able to introduce the levy "to support investment in tourism services and facilities".

A tourism tax, or levy, is a charge which would need to be paid by anyone staying overnight in any area which introduces it.

The idea is that it covers, or contributes to, the costs which authorities face as a result of the tourism industry.

If a local authority decides to introduce the tourism tax, fees for people staying in hostels, shared rooms and tent pitches would be 75p + VAT per person per night, while most other types of accommodation would be charged at £1.30 + VAT.

But according to Dr Linda Osti, senior tourism lecturer at Bangor University, decisions on how much is charged, and how a levy is brought in, should be made on a more local level instead of a one-size-fits-all approach.

"It's one legislation for every county and and it's applied at county level, when we should think about sub-county level," she said.

"Geographically, if we think about Gwynedd... we cannot have the same levy on Eryri or Porthmadog. The same legislation cannot work for Cardiff or in Anglesey, on the coast.

Osti also suggested there was a "mistrust" from tourism businesses on how local authorities would spend money generated from tourism tax, compared to places like the Italian alps where decisions are made through smaller co-operatives.

Earlier this month, it was announced that regional mayors in England would gain new powers to charge an uncapped levy on overnight stays for visitors.

Osti, who co-authored a 2024 report for the Welsh government studying how visitor levies worked in other countries, external, said: "If we compare what we know from England, which is very little at the moment, it appears to be much more flexible.