The Welsh Government says a new bill requiring tourists staying overnight in Wales to pay a small charge could add £33million to the industry.

A bill that requires people staying overnight in Wales to pay a small charge has been introduced by Finance Secretary Mark Drakeford in an initiative to “support” the tourism industry.

The Visitor Accommodation Bill, introduced on Monday, November 25, proposes giving local authorities option to introduce a small visitor levy in their area to re-invest in local tourism, meaning that people staying overnight in Wales could pay a small charge, with the money raised going towards tourism activity and infrastructure in Wales.

Proponents of the bill say it would provide Welsh communities with the chance to generate additional revenues, adding that if all Welsh local authorities choose to introduce a visitor levy, they estimate it could generate up to £33m a year and could be introduced as early as 2027.

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Finance Secretary Mark Drakeford said: “We know tourism makes an important contribution to the Welsh economy and to Welsh life. We want to ensure its long-term sustainability.

“That’s why we believe it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience. Visitor levies are common around the world, benefiting local communities, tourists and businesses.

“Money raised through a levy would be retained by local authorities and re-invested back into their local areas to support local, sustainable tourism. It’s a small contribution that could make a big difference.”

The levy would be set at 75p per person per night for people staying in hostels and on campsite pitches and £1.25 per person per night for those staying in all other accommodation types.

Visitor levies have been introduced in several areas in Britain and of the world, including Manchester, Greece, Germany, Netherlands, Spain, Portugal and California.

Councillor Andrew Morgan OBE, WLGA Leader, added: "This Bill will give councils the option to introduce a visitor levy on overnight stays. It’s a way to raise extra funds to support local services and improve amenities that benefit both visitors and the community.

“Each council will decide how to apply the levy based on what’s best for their area, recognising that it may be suitable in some parts of Wales but not in others. Councils will carefully consider local circumstances and ensure residents are consulted before any decisions are made.”