MID WALES Tourism (MWT Cymru), which represents more than 600 tourism and hospitality businesses across Powys, Ceredigion and Meirionnydd, is calling for greater scrutiny of the Welsh Government’s proposed visitor levy.
The organisation warns that the policy could place disproportionate strain on rural economies, while delivering limited practical benefit on the ground.
The levy, which would charge overnight visitors up to £1.30 per night, is being presented as a way for tourists to contribute more to local services. However, MWT Cymru is urging decision-makers and communities alike to consider the wider consequences, particularly for regions where tourism underpins jobs, town centres and public life.
Zoe Hawkins, chief executive of MWT Cymru, said: “With three in ten overnight stays in Wales made by Welsh residents, this isn’t just about visitors from elsewhere; it’s also a charge on families choosing to holiday at home.
“For a family of five staying with a VAT-registered business, this could mean an extra £55 in tax. That may not sound like much on paper, but every added cost influences choices.”
While the levy is intended to boost local investment, the economic modelling tells a more complex story. The Welsh Government’s own research estimates a potential two to 10% drop in overnight stays.
A 2% decline alone could mean a £68 million loss to rural economies annually across Powys, Ceredigion and Gwynedd, hitting independent businesses hardest, says MWT Cymru.
Research carried out by the Welsh Government has stated that should all 22 local authorities adopt the levy, then this would generate £33million across Wales. This figure is now in doubt.
Zoe said: “Pembrokeshire, one of Wales’ most visited counties, has already chosen not to implement the levy at this time, recognising the potential economic risks.
“This decision not only shows leadership in protecting rural jobs but also reshapes the financial assumptions behind the policy. If major visitor destinations opt out, the return will be far lower than originally suggested but the cost and complexity remain.”
The policy would require a nationwide infrastructure to collect and manage the levy, involving the Welsh Revenue Authority and local councils. This would be publicly funded, including in areas where the levy may never apply, and Welsh Government analysis indicates that while some new public sector roles will be created, this is likely to come at the cost of private sector jobs in tourism and hospitality.
Zoe questioned: “Communities are being told this is about supporting local services, but if that comes at a cost to private sector jobs and an increase in public sector jobs, we need to ask is this really sustainable?”
There are also concerns about readiness. A statutory register of tourism businesses – essential for applying the levy fairly – has no confirmed timeline or funding. Estimates range from 16,000 to 55,000 businesses across Wales, underscoring the lack of clarity and undermines the confidence in the financial modelling being presented.
Zoe said: “As an industry, we have always supported the introduction of a comprehensive register of all tourism businesses and this must come first. You can’t fairly apply a tax if you don’t even know who it applies to.”
MWT Cymru is calling on local authorities and Senedd members in Powys, Ceredigion and Gwynedd to follow Pembrokeshire’s lead and stand with their rural communities. It says town centres are under pressure, attractions have closed and job security is fragile already.
Zoe said: “Everyone wants to see sustainable investment, our tourism businesses included. But it has to be based on the realities of each region. Bala isn’t Barcelona ,Machynlleth isn’t Manchester and we are not hosting Taylor Swift at Aberystwyth Arts Centre!
“Rural Wales works differently. We don’t have the safety net of major events or business tourism. Even a small drop in visitors can have immediate, far-reaching impacts on jobs, high streets and communities.
“This isn’t about opposing for opposition’s sake, it’s about ensuring policies work for all of Wales. In uncertain times, even well-meaning policies can have unintended consequences. For rural Wales, those consequences can be deeper and harder to reverse.”
For more information or to support their work, visit the work of MWT Cymru, visit MWT Cymru website.
