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

Wales' tourism tax needs to be more flexible, an expert has said.

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.

"There are different visitors, there are also different conditions."

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.

"So local authorities can decide the percentage to charge and whether to introduce exemptions, and it seems they may also decide for how many nights, and whether to charge children or not.

"I wish Wales would go back and think about flexibility and revisit the legislation."

On Thursday, Anglesey council confirmed it would not introduce the so-called tourism tax for now, "given the challenges already facing its tourism industry".

It said a public consultation received more than 2,000 responses, including from residents, businesses and tourism stakeholders, with concerns voiced about increased costs for visitors, and the island's "competitiveness" as a holiday destination.

Meanwhile, Cyngor Gywnedd agreed to delay its decision over the levy so more analysis could be done of almost 7,000 responses to its consultation - a number it said was "much higher" than other areas.

The local authority said initial figures showed a mixed reaction to the proposals, with more support from residents but higher levels of opposition from visitors and businesses.

In Conwy, council members also chose to defer a decision on implementing the levy until "further evidence and practical experience are available".

It said concerns from consultations included fears over reduced bookings, shorter stays and reduced visitor spend at a time when local businesses are facing economic pressures.

Bethan Evans, of family-run business Dolgamedd caravan park in Dolgellau, Gwynedd, is one of those in support of introducing a tourism tax in the county to help areas cope with busy roads and car parks at peak times.

She said she was "disappointed" that councils appeared to be "scared of a noisy, selfish minority" opposing the fee, and described the 75p per night levy for people camping as "nothing" compared to the rubbish that some visitors left behind at the site.

"You get people [with] brand new tents who can't be bothered to put a wet tent back in the car so they try and dump them in our bins, which we pay for," she said.

"There is such a lot of that happening, and the amount of food waste is just incredible. So it's ridiculous saying they can't afford it, oh yes they can."