Wales Visitor Levy: what accommodation providers need to know

The Wales Visitor Levy is a small per-person, per-night charge on overnight visitor accommodation stays. It was created by the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 and gives local councils in Wales the power to introduce the levy in their area from 1 April 2027.

The key point: councils choose whether to adopt the levy

The Visitor Levy is not automatic. Each local council in Wales decides independently whether to introduce it. If your council does not adopt the levy, you will not need to collect it -- but you must still be registered with the Welsh Revenue Authority.

Before introducing the levy, a council must:

• Consult with local people about the proposal
• Announce the start date at least 12 months in advance, giving providers time to prepare

This means the earliest any council could start collecting the levy is 1 April 2027, and only if it completed consultation and announced the start date by 1 April 2026.

Levy rates

Welsh Ministers set the levy rates nationally. This means every council that adopts the levy uses the same rates, ensuring consistency for providers and guests across Wales.

Who is exempt

Not everyone pays the levy. The Act includes several exemptions to protect specific groups.

How to collect and remit the levy

If your local council introduces the levy, you as the accommodation provider are legally responsible for collecting it from guests and paying it to the WRA.

Impact on pricing

The levy is a modest addition to accommodation costs. At the standard rate of £1.30 per person per night, a couple staying for a 3-night break would pay an extra £7.80 in total. At the lower rate of 75p (for campsites and hostels), the same stay would add £4.50.

You may choose to absorb the levy in your pricing or show it as a separate line item on guest bills. Either approach is acceptable, but guests must be made aware of the charge. Transparency about the levy and its purpose (supporting local tourism facilities) can help manage guest expectations.

Where the money goes

All levy revenue must be retained and reinvested locally by the council that introduced it. Funds must be used to support tourism in the area, for example maintaining public toilets, footpaths, beaches, and visitor centres. The levy cannot be used for general council spending unrelated to tourism.

Comparison with Scotland

Scotland's Visitor Levy (Scotland) Act 2024 also gives councils discretionary power to charge a levy on overnight stays. However, the two schemes differ in important ways:

• Rate structure: Wales uses a flat per-person, per-night amount set nationally (75p or £1.30). Scotland lets each council set its own percentage of the accommodation cost (Edinburgh has set 5%)
• Rate-setting: Welsh Ministers set rates centrally. Scottish councils set their own rates
• Collection body: Wales uses the Welsh Revenue Authority centrally. Scottish councils manage their own collection

England and Northern Ireland have no visitor levy legislation.