Welsh Labour Government’s contentious Visitor Levy Bill [referred to by some as a ‘Tourism Tax’] has received Royal Assent from His Majesty The King. The new law gives local authorities in Wales the option to introduce a small visitor levy for overnight stays in their area, with all funds reinvested locally to support tourism.

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was passed by the Senedd on July 8 of this year; and became an Act on September 18.

Local authorities can choose whether to introduce the levy in their area, but only after consulting with their local communities.

Councils will decide how money raised can be used for tourism-related expenses – such as improving toilets, footpaths, beaches, visitor centres and activities. The Welsh Revenue Authority (WRA) will collect and manage the levy for councils.

The law also creates a national register for all visitor accommodation providers operating in Wales, which will be run by the WRA. This will provide better data about tourism to help councils, the Welsh Government and communities make informed decisions about how properties are used in their areas.

There is no cost to register and, from Autumn 2026, anyone charging visitors to stay overnight in Wales must sign-up.

But the earliest possible date a levy could be introduced by councils opting to do so would be 2027.

Finance Secretary Mark Drakeford said: “The visitor levy represents a small contribution that will make a big difference by helping to maintain and enhance the very attractions that make Wales such a wonderful place to visit and live.

“This historic legislation gives Wales the same tools used so successfully by destinations all over the world to balance the benefits and pressures of tourism between visitors and residents.”

Rebecca Godfrey, interim chief executive of the Welsh Revenue Authority said: “We’re delighted to support local authorities with the collection of the levy and implement the new visitor accommodation register.

“Our proven track record managing Wales’ devolved taxes means we are well positioned to administer the register and levy efficiently. We’ll work with providers and the industry to help everyone prepare for autumn 2026.”

The new law:

Visitor levies are common around the world, including in many popular tourism destinations across Europe.

Revenue from similar models has made a significant impact on protecting the environment, improving facilities, preserving natural beauty whilst supporting their visitor economy, without deterring tourism.

Pembrokeshire County Council confirmed earlier this year that it does not intend on introducing a ‘tourism tax’ for the region at this point in time, with Deputy Leader and Cabinet Member for Place, the Region and Climate Change, Cllr Paul Miller stating: “It's not our intention to take forward the option of a visitor levy in Pembrokeshire during this administration.”