A senior lecturer at Bangor University has called for revisions to Wales’ tourism tax legislation, arguing that the current framework does not adequately account for regional differences. The Welsh government introduced legislation allowing local authorities to implement a nightly visitor levy beginning in 2027, with fixed pricing structures: 75 pence plus VAT per person per night for hostels and shared accommodations, and £1.30 plus VAT for most other lodging types. However, Dr. Linda Osti contends that applying uniform charges across entire counties fails to recognize distinct geographic and economic conditions.
Osti notes that areas with different visitor profiles and tourism characteristics—such as mountain regions like Eryri versus coastal towns like Porthmadog, or major cities versus rural areas—cannot operate effectively under identical fee structures. She also points to concerns among tourism businesses regarding transparency in how councils would allocate revenue generated from the levy. Comparing Wales to other jurisdictions, particularly the Italian Alps where smaller cooperatives make decisions collaboratively, Osti emphasizes the importance of community-level input. She references England’s recently announced regional mayor powers, which permit uncapped levies with greater flexibility regarding percentage rates, exemptions, and decisions about charging children.
Several Welsh councils have recently decided to postpone or reject the levy. Anglesey council declined to implement the tax, citing industry challenges and consultation responses expressing concerns about visitor competitiveness. Gwynedd and Conwy councils also delayed decisions pending further analysis of substantial public feedback showing mixed support. Industry representatives remain divided: some tourism business operators support the levy to address infrastructure strain from peak-season visitors, while others warn the additional cost could reduce bookings and visitor spending during economically challenging times. Cardiff council appears positioned to become the first Welsh local authority implementing the levy in 2027.
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