Wales' Controversial Tourism Tax: The Impact on School Trips and Families

The Welsh government has announced a significant change to its proposed tourism tax, exempting children and young people under 18 from the planned 75p per night charge. This decision comes in response to concerns that the fee would make school trips unaffordable for families on a low income. Finance Secretary Mark Drakeford, who had previously warned that such exemptions would cause a notable drop in tax revenue, reversed his position after further examination, declaring that underage guests in basic accommodations will be completely exempt from the visitor levy.

Under the new regulations, while children are exempt, the tax for other accommodation users will see a small increase: from the initially proposed £1.25 for hotels, B&Bs, and self-catering units to £1.30, and from 75p to 80p for hostels and campsites. The Welsh government indicates that this tax could generate approximately £33 million annually, with councils deciding whether to implement it if a new law is approved by the Senedd. Charges could be introduced as early as 2027.

Drakeford reassures the public that this modest tax will not deter visitors, stating it costs less than a sausage roll, half a cup of coffee, or a bottle of water, and will ultimately benefit services in popular tourist areas. However, critics, including Conservative Senedd member Janet Finch Saunders, argue that this measure could be detrimental to Welsh tourism businesses, potentially signaling to tourists that Wales is closed for business. Plaid Cymru’s Luke Fletcher, on the other hand, supports the tax by asserting it is a sustainable approach to managing tourism’s impact on local communities and economies, particularly in heavily trafficked regions. Tourism operators and groups like the Scouts have expressed concern that such fees might limit young people’s ability to participate in camps and other overnight events, casting doubt on the tax’s overall impact.