Welsh Tourist Tax update

The latest announcement delays implementation of the tax until 2027 and displaces the decision to implement to a local level, with each of the 22 councils having to hold a consultation with residents, before activation of the tax (we presume in their area).

Speaking to the Senedd’s finance committee, Mark Drakeford said there will now be a six-month window once a council decides to introduce it, before people will have to pay. This is to allow time for booking systems and paperwork issued by venues to be updated.

Another change is the point of payment; it will be on the departure, not the arrival of the guest.

The Senedd has indicated that Welsh Revenue Authority will be in charge of the collection process.

The fee rate now seems to have crystallised at a 2-level approach being-

• 75p per person per night for people staying in hostels and on campsite pitches
• £1.25 per person per night for those staying in all other accommodation types

There seems to be some discretion to the local council as to whether under-18s should be subject to the tax, but Drakeford indicated that if such an exemption was granted, then the rates for adults would increase by 5 pence.

Interestingly, we recently posted about how the Welsh government was trying to waterproof Wales with grants for rain shelters etc. We wonder if the money generated by the tax will be used for similar schemes going forward.