Wales to introduce a tourist tax from 2027

Welsh authorities have passed a law introducing a tourist tax that will take effect in 2027. Tourists will have to pay an additional £1.30 for each night of stay. According to the Welsh government, the funds raised will go toward improving tourism infrastructure and supporting local communities.

For tourists staying in hostels and campsites, the fee will be 75 pence per night, while guests at hotels and guesthouses will pay £1.30.

Finance Minister Mark Drakeford stressed that such taxes are successfully applied in many countries around the world. "By backing this initiative, Wales is joining numerous international destinations that already successfully use similar fees. This allows the burdens and benefits of tourism to be shared fairly between tourists and local residents," he said.

A bill to introduce the fee was first proposed back in 2018, but was only approved by the Senedd on 9 July 2025. Before it takes effect, a two-year period of consultation with local communities will be required, after which each local authority will decide whether to introduce the tax.

Once approved, the tax will be paid by all tourists aged 18 and over staying in hotels, guesthouses, hostels, and campsites. The fee, 5 pence higher than the original proposal from November 2023, will vary depending on the type of accommodation.

According to Drakeford, "this small charge will have a significant positive impact on the lives of our communities."

Another stated goal of the new tax is to support the Welsh language. The Welsh government expects that revenue from the tourist levy, estimated at around £38 million a year, will help achieve its goal of increasing the number of Welsh speakers to one million by 2050. Specific mechanisms for achieving this goal have not yet been determined.

Wales is not the first part of the UK to introduce such a practice. In May 2024, a similar law was passed in Scotland, allowing local councils to set tourist levies. Edinburgh will be the first to introduce a 5% accommodation levy from 24 July 2026. Glasgow has also approved a similar tax from January 2027, expected to bring in about £16 million a year.

In England, introducing a tourist tax is currently prohibited, but Liverpool and Manchester have managed to find legal workarounds to introduce alternative visitor charges.

The practice of tourist levies is spreading worldwide. France was a pioneer, introducing its "taxe de séjour" back in 1910. Today, more than 60 countries apply similar fees, which have proven effective as a revenue source with virtually no impact on tourist numbers. For example, Venice's €5 fee for visiting the historic centre brought in €2.4 million in 2024 without significantly reducing visitor numbers.