Visitor Levy
Published on 5 Jun 2026 by Amy GreenwoodYou may have seen ongoing discussion around the proposed Visitor Levy for Wales and what it could mean for tourism businesses, visitors and local communities.
As the conversation moves from national policy into local authority decision-making, we wanted to share a brief update on where things currently stand – and some of the practical issues likely to matter most for holiday cottage owners across Wales.
What Is The Visitor Levy?
The proposed Visitor Levy would allow local authorities in Wales to introduce a small l charge for overnight stays in visitor accommodation.
Importantly, it would not automatically apply across Wales. Each local authority would decide whether or not to introduce it, meaning approaches could differ between different parts of the country.
Visitor levies are already common in many international destinations, and in principle most people understand the argument that visitors should contribute towards the infrastructure and services they use.
For us, the key question is really about implementation.
Why Implementation Matters
Although national guidance is still emerging, many practical details will depend on local implementation and how booking systems adapt.
Our intention will always be to make compliance as straightforward as possible for Dioni cottage owners. We are already considering how levy collection and reporting could be managed through our existing booking processes and will provide further guidance as the position becomes clearer.
At present we are not yet aware of a confirmed approach from major booking platforms.
There is understandable concern about competitiveness. While the levy may represent a relatively small proportion of the cost of a luxury holiday, its impact becomes much more significant in lower-cost and highly price-sensitive sectors of the tourism market.
Camping, touring, budget accommodation and short family breaks are likely to feel the effect more acutely, as the levy represents a larger percentage of the overall booking value.
For holiday cottage owners, this may provide another reason to focus on creating exceptional guest experiences and higher-value accommodation rather than competing primarily on price. Features such as hot tubs, games rooms, outdoor facilities and other premium amenities can help properties command higher rates, meaning any future levy represents a smaller proportion of the overall booking cost.
Community Benefits?
Much will depend on whether visitors and local communities see real and visible benefits from the levy.
Where revenue is reinvested into tourism infrastructure and services – such as parking, public toilets, footpaths, signage and visitor information – there is genuine potential for meaningful long-term improvements to the visitor experience. Many operators would support investment that helps destinations manage tourism more effectively and improves facilities for both visitors and residents.
There is also a wider opportunity to strengthen relationships between tourism businesses and local communities. Where residents can see a clear connection between visitor spending and investment in local services, it may help build a more positive perception of tourism and the contribution visitors make to local economies.
At a time when negative headlines about tourism in Wales can seem to dominate, many operators will hope that levy revenues are used in ways that demonstrate the real value visitors bring – and that help build broader support for tourism across Wales, particularly in the rural communities that depend on it most.
Local Authority Consultations
The discussion is now beginning to move into formal consultation stages in several parts of Wales.
Conwy County Borough Council has launched a public consultation on the possible introduction of a Visitor Levy across the county, running until 17 July 2026.
Further details can be found here:
https://www.conwy.gov.uk/en/Resident/Parking-Roads-And-Travel/Roads-and-Transport-Projects/Visitor-Levy-Consultation.aspx
Gwynedd and the Isle of Anglesey councils have also launched consultations, while Cardiff Council has already confirmed plans to introduce the levy from April 2027.
The evidence from overseas shows that visitor levies can work successfully in many destinations. However, implementation will be critical – particularly in rural and seasonal tourism markets where businesses already operate within tight margins and highly competitive conditions.
As these discussions continue to evolve, we believe it is important that the voices of tourism operators, local communities and visitors remain part of the conversation. Please consider taking part in one of the consultations if relevant to you.
As always, we’ll continue to monitor developments and keep you informed as further detail emerges.
Visitor Levy FAQ
When could the levy start?
Individual local authorities must decide whether they wish to implement the levy. The process involves them first to submit an expression of interest, then to carry out a consultation, and then to give 6 months’ notice prior to implementation which can only be in April or October.
To date, Cardiff is the only local authority in Wales that has concluded a consultation and confirmed that it intends to introduce the levy (effective from 01 April 2027).
The latest information about which local councils have announced that they have confirmed or are considering the levy can be found in the following link: https://www.gov.wales/check-if-local-council-charges-visitor-levy-wales
Will the levy apply to bookings already taken for 2027?
Not necessarily.
Local authorities must give 12 months’ notice before introducing the levy. The first six months after that notice date effectively acts as a ‘protected’ period for bookings.
In simple terms, a booking will usually only fall within the levy if both of the following apply:
• The stay begins after the levy start date; and
• The booking was made at least six months after the local authority gave formal notice of the levy start date.
For pre-existing bookings, the levy does not apply, but if any changes are made to that booking (eg: adding new guests) then the levy is applicable to those new guests.
Will Airbnb, Booking.com and other platforms collect the levy?
At present we are not aware of a confirmed approach from the major booking platforms. We expect more detail to emerge as implementation plans develop.
Are children exempt?
For self-catering accommodation, children are generally counted in the same way as adults. Different rules apply to some lower-rate accommodation categories such as campsites.
Does the levy apply to long stays?
No. Under current guidance, stays of more than 31 consecutive nights are not subject to the levy.
Does the levy count as a taxable turnover?
Yes, the levy does count as a taxable turnover.
What happens if a guest cancels?
If a booking is cancelled and the stay does not take place, the levy should not be due. If any levy amount has already been collected, the levy element should be refunded.
Do I need to register my accommodation?
Yes. Under the new registration requirements, anyone taking bookings for overnight stays (31 nights or less) in Wales must register their accommodation with the Welsh Revenue Authority from October 2026. This applies whether or not your local authority chooses to introduce the Visitor Levy. Registration is free and will require basic information about the accommodation, including its address, accommodation type and maximum occupancy. We’ll provide further guidance as the registration date approaches.
