Dr Linda Osti, a senior tourism lecturer at Bangor University, has called for the Welsh government to revise its tourism levy legislation, arguing that the current “one-size-fits-all” model fails to account for regional differences. Her comments follow a wave of hesitation among local councils, with Anglesey rejecting the fee and Gwynedd and Conwy postponing their decisions.
The Welsh government legislation, scheduled to take effect in 2027, permits local authorities to charge a nightly fee on overnight visitors. Under current rules, the standard rate is set at £1.30 plus VAT per person per night for most accommodations, while hostels, shared rooms, and campsite pitches attract a 75p plus VAT charge. The legislation applies equally to adults and children over the age of 18.
Dr Osti, who co-authored a 2024 report for the Welsh government on visitor levies, suggested that decision-making power should be delegated to a sub-county level. She argued that geographically and demographically distinct areas, such as the coastal town of Porthmadog or the Eryri national park area within Gwynedd, require tailored approaches rather than uniform county-wide mandates.
“It’s one legislation for every county and it’s applied at county level, when we should think about sub-county level,” Dr Osti said. She also highlighted a perceived “mistrust” among tourism businesses regarding how councils would utilize the generated revenue, contrasting the Welsh system with smaller cooperatives in the Italian Alps where local decisions are made more directly.
Conversely, Dr Osti pointed to Cardiff as an example where the existing legislation is well-suited. She noted that the city’s business-focused tourism market is less price-sensitive, making the fixed levy manageable for visitors staying in higher-priced hotels. Cardiff is currently set to become the first Welsh authority to implement the charge from April 2027.
Recent consultation results have fueled caution across Wales. Anglesey council confirmed it will not introduce the levy, citing a public response of over 2,000 people who raised concerns about the impact on the island’s competitiveness and the cost burden on visitors. In Gwynedd, nearly 7,000 responses revealed a split opinion, with resident support contrasted by strong opposition from businesses and tourists. Conwy council similarly deferred its decision, citing fears of reduced bookings and shorter stays during an already difficult economic period.
Despite the political hesitation, some local business owners support the tax. Bethan Evans, who runs a caravan park in Dolgellau, Gwynedd, argued that the 75p nightly fee for campers is minimal compared to the waste management costs incurred from irresponsible visitors. However, Nicky Williamson of the Professional Association of Self-Caterers (PASC) UK Cymru welcomed the councils’ pauses, describing them as a “victory for common sense” and urging other authorities to avoid adding costs to the Welsh visitor economy at this time.
Meanwhile, regional mayors in England have been granted new powers to impose uncapped levies, which Dr Osti noted offers greater flexibility than the Welsh framework. The Welsh government maintains that the legislation is designed to allow local discretion, with funds ring-fenced for tourism promotion, infrastructure, and the Welsh language.
If Welsh councils can’t even agree on the basic rate, how will they manage revenue spending? Businesses just want certainty, not more delays.
I’m surprised Anglesey rejected it outright. Over 2,000 responses against seems decisive, but it worries me for regional infrastructure funding.
Sub-county flexibility makes sense. A uniform rate won’t work when Anglesey and Cardiff have such different tourism dynamics.