Tourism levy - Update from Zoe Hawkins

As Chief Executive of MWT Cymru, I want to update our members on the work we have been doing to represent your views on the proposed Tourism Levy. This legislation, set to be debated and voted on in the Senedd in the coming months, would, if passed, be introduced in 2027.

The levy proposes a flat rate of £1.25 per person per night for overnight stays in serviced accommodation and £0.75 per person per night for visitors staying in campsites and hostels. MWT Cymru submitted a consultation response on 10th January 2025 and provided evidence to the Senedd Finance Committee on 5th February 2025. A full video of the committee session is available here

We have also been actively engaging with Members of the Senedd (MSs) to express serious concerns about the impact this levy will have, not just on businesses, but on the wider economy of Mid Wales.

Key Concerns

Weak Economic Justification


There are significant doubts over the economic case for the levy. While additional revenue generation is the stated goal, there is a real risk that the cost of implementation—both for businesses and the public sector—could outweigh any financial benefit. Moreover, the potential knock-on effects on local supply chains, employment, and overall economic activity in the tourism sector have not been fully assessed.

The Welsh Government's research indicates that the levy is expected to generate approximately £33 million for the Welsh economy. However, this figure is based on the assumption that all 22 local authorities implement the levy. The cost of establishing, enforcing, and managing the levy involves two sets of administrative expenses—one at the local authority level and another through the Wales Revenue Agency, which is responsible for collecting the levy. These administrative costs could significantly reduce any net financial benefit, raising further concerns about the feasibility and effectiveness of the levy - not to mention the economic loss.

Lack of a Level Playing Field

One of the most pressing concerns is the absence of a statutory registration system for all tourism accommodation providers in Wales. Without such a system in place, it is impossible to accurately determine the number of businesses operating, particularly as many currently remain off the radar. This lack of transparency undermines fair competition and creates significant enforcement challenges.

Furthermore, there is no clarity over who will be responsible for enforcing the levy for unregistered businesses. The Wales Revenue Agency (WRA) has not costed this enforcement and we don't believe the local authorities have either. This raises the question: who will ensure compliance? Without clear enforcement measures, there is a risk that only legitimate businesses will bear the burden while unregistered operators continue to operate unchecked, further skewing the playing field.

For the levy to be implemented fairly, a robust registration and enforcement framework must first be established to ensure that all businesses are contributing equally, rather than penalising those who are already operating within the legal framework.

Additional Burdens on Micro-Businesses

Over 90% of tourism businesses in Mid Wales are micro-businesses, often run by families who already face significant administrative and financial pressures. Adding further bureaucracy and costs at a time when businesses are grappling with rising costs, increased national insurance costs, and broader economic uncertainties is deeply concerning.

Lack of Investment to Offset Projected Visitor Decline

The Welsh Government has acknowledged that this levy could lead to a 2-10% reduction in visitor numbers, yet there is no clear commitment to reinvest revenue into areas that will be most affected, such as Mid Wales. This means businesses will bear the cost of lost visitors without any guarantees of additional support or infrastructure investment to mitigate the impact. 

Unfair Financial Burden on Certain Businesses

The proposed levy structure disproportionately affects budget-conscious travellers, such as those using campsites and hostels. Visitors staying in a tent or a bunkhouse in Mid Wales will pay a significantly higher percentage of their accommodation cost in levy than those staying in high-end hotels in Cardiff or Swansea. This is neither fair nor sustainable for businesses in rural areas where tourism is vital to local economies.

Misguided Comparisons to Other Destinations

Throughout discussions, comparisons have been made to destinations like Catalonia, which has a well-established tourism tax. However, this comparison fails to recognise that Catalonia benefits from four international airports, a high-speed rail network, and 20 million international visitors annually. Wales, by contrast, welcomes 800,000 international visitors a year and lacks comparable transport infrastructure.

Mid Wales, in particular, has long suffered from underinvestment in connectivity and infrastructure, making the region especially vulnerable to any policies that discourage domestic or international visitors. Any decisions made on a national scale must consider the whole of Wales, not just the major cities.

Wales Taxing Children?

A key issue that has not been adequately addressed is that the levy applies to all visitors, including children. This raises reputational concerns. Is this truly the message we want to send about Welsh hospitality? 

MWT Cymru: Representing Your Voice

MWT Cymru is dedicated to ensuring that tourism businesses across Mid Wales are properly represented. We have been actively engaging with policymakers, providing evidence to committees, and making sure your concerns are heard at every level. We extend our sincere thanks to all members who have contributed valuable insights—your input is essential in shaping our response.
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As a regional organisation, our mission is to protect and support the visitor economy in Mid Wales. We will continue to challenge policies that threaten our industry and advocate for solutions that benefit businesses and communities alike. If you would like to discuss the Tourism Levy or share your views, please get in touch.

We are an independent organisation that receives no core funding. If you know of any businesses that would like to support the work we do, please encourage them to reach out. Our ability to represent our industry and protect our rural economy relies on the continued support of the business community.

Thank you

Zoe Hawkins
Chief Executive, MWT Cymru
[email protected] 


A full copy of MWT Cymru’s consultation report can be found here: Full Consultation Response
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