Welsh Government plans £1.25 tourism tax, excludes children

The Welsh Government is proposing a tourism tax that would charge £1.25 per night for guests in hotels and other accommodations, with a reduced rate of 75p for hostels and campsites, set to potentially begin in 2027. Finance Secretary Mark Drakeford has rejected calls to exempt children from the levy, arguing that such exclusions would significantly decrease the expected revenue from £33 million to £21 million, and would necessitate higher charges for remaining guests. Critics, including the Welsh Conservatives and tourism industry leaders, have expressed concerns that the tax could deter visitors and negatively impact the economy, potentially leading to job losses and losses of up to £47 million annually. Drakeford emphasized the importance of maintaining a broad tax base to keep the charges low and clarified that the tax is designed to support services in tourism hotspots. The proposal requires legislative approval from the Welsh Parliament before implementation. The tourism sector's response has been overwhelmingly negative, with calls for a reassessment of the timing and impact of the tax.