Wales could introduce a new 'tourism tax' for visitors

Wales has many popular tourist areas including the seaside town of Tenby in Pembrokeshire

People visiting Wales could be required to pay a tourism tax in the next two years, it's been announced.

Those staying overnight in accommodation including hotels, Airbnbs and self-catering properties could pay an additional £1.25 per person per night.

The tax, which is also known as a levy, would also apply to people staying in hostels and on campsites who would pay a lower fee of 75p per person per night.

The cost would be the same for both adults and children.

The Welsh government said the money raised from the tax (money that adults have to pay to the government) would help fund services in popular tourist areas and promote the Welsh language, but some say it will put people off visiting.

How would the tax work?

Some say a tourism tax may put people off visiting Wales

The Welsh government is looking to introduce a new law which would give councils in the country the power to charge visitors the tourism tax on top of the cost of their accommodation.

The legislation would need to first be approved and passed by the Senedd Cymru, which is the Welsh parliament.

If that happens, officials think April 2027 is the earliest date the tax could start.

However, the tax won't automatically apply to the whole country.

Instead, each of the 22 main councils in Wales would need to decide whether they want to introduce the tax in their area.

Not all of them are expected to do so, but if they did, the Welsh government estimates it could bring in up to £33 million a year.

If the law is introduced, councils would also be given the option to increase the amount charged to tourists in the future. However, they would need to go through a special process and give 12 months' notice.

What has the response been?

The Welsh government say a tourism tax could help promote tourism in the country

Tourism taxes aren't a new concept, with many countries around the world bringing in levies for visitors, including Austria, Belgium, France, Greece, Japan and many of the Caribbean Islands.

The introduction of these types of taxes for tourists is something Wales' finance secretary Mark Drakeford has highlighted as a positive thing.

"Visitor levies are common around the world - benefiting local communities, tourists and businesses - and we want the same for Wales," he said.

"Money raised through a levy would be retained by local authorities and reinvested back into their local areas to support local, sustainable tourism.

"It's a small contribution that could make a big difference."

However, not everyone thinks it's a good idea.

Peter Fox, who is the Welsh Conservative shadow minister for finance, said a tourism tax would cost jobs and attract fewer visitors to Wales.

"We've been absolutely clear from the start that this policy is the wrong one for Wales," he said.

"Our tourism industry should be nurtured by the Welsh government, not hamstrung by new taxes."

William McNamara, who is the chief executive of Bluestone National Park Resort in Pembrokeshire, has also criticised the introduction of a tourism tax, which he says could impact families.

"Wales risks becoming less attractive to visitors, especially families, who may view this as an additional cost in an already competitive UK market, particularly as this levy is not being introduced in England," he explained.