A well-structured tourism levy can be a valuable asset to any region, helping to sustain infrastructure, support local communities, and enhance the visitor experience. The details matter, however—how it is collected, who it applies to, and, crucially, how the funds are reinvested.
So why all the debate surrounding the Welsh Visitor Levy? What would the potential impact be in Bannau Brycheiniog (Brecon Beacons) National Park?
Having reviewed the consultation papers and industry reports, we believe it’s only fair to lay out the key details so you can decide for yourself where this proposal might lead.
The levy is a proposed fixed charge per person, per night, applied to all overnight accommodation across Wales. Accommodation providers, rather than visitors, will be responsible for collecting and paying it. Rates are set at:
However, this charge is subject to VAT, making the actual cost £0.90 and £1.50 per person per night for non-VAT-registered businesses
While Brecon Beacons Tourism supports the idea of a levy in principle, the current proposal has significant gaps that need addressing:
1. Impact on Young Visitors and Educational Groups
The levy applies to all visitors, regardless of age, meaning that babies, children, and young people under 16 will be charged. This disproportionately affects youth-focused outdoor education groups, such as Duke of Edinburgh expeditions, where participants will face an additional 75p per night per head.
2. Welsh Residents Will Also Pay the Levy
Unlike many international examples, Welsh visitors staying in other parts of Wales are not exempt. If you rent accommodation within Wales while visiting family or for work, you will pay the levy, but if you stay with family, you won’t. This raises questions about fairness and consistency.
3. Day Visitors Are Exempt
Overnight visitors, who already contribute significantly to the local economy, will be taxed while day visitors—who make up the majority of tourists—will not. With approximately 70 million day trips to Wales each year and only 8 million overnight stays, the burden falls disproportionately on a small fraction of visitors.
4. Administrative Burden on Businesses
Accommodation providers will need to register with a new system and manage levy payments, adding significant administrative costs. Those failing to comply face penalties of up to £5,000.
5. The Levy is VAT-able, but the Revenue Won’t Stay in Wales
Because the levy is subject to VAT, approximately £6.6 million of the expected revenue will go directly to the UK Treasury rather than being reinvested in Welsh tourism.
6. The Accommodation Register is a Missed Opportunity
A key part of the proposal is the introduction of a national accommodation register, requiring all providers to sign up. However, rather than ensuring health, safety, and compliance standards, this is simply a database for levy collection. Industry groups, including PASC UK and the Wales Tourism Alliance, had advocated for a system that also ensured accommodation providers met legal requirements, which has not been included.
The idea of a visitor levy is not inherently bad—it could, if structured correctly, fund much-needed infrastructure and tourism management. However, the current model disproportionately impacts small businesses, low-income travellers, youth groups, and the self-catering sector, while failing to apply to the largest proportion of visitors (day-trippers).
Furthermore, the additional VAT burden means a significant portion of funds will not stay in Wales, undermining the levy’s intended purpose
As the debate continues, businesses and communities must engage with policymakers to ensure that if a levy is introduced, it is fair, practical, and genuinely beneficial to Welsh tourism.
Full consultation papers and reports are available for review:
