Wales has green lighted a tourist tax allowing local councils to charge guests a per night fee in accommodations.
Following a vote, it would enable councils to tax overnight visitors in Wales £1.30 per night in hotels while those in hostels and on campsites would pay 75p per night.
While it allows local authorities to charge the fee, many will likely not do so.
Some say it could impact tourist numbers while the Welsh Conservatives have vowed to scrap it if it wins the 2026 election.
The government forecasts up to £33 million a year in revenues for local councils if they all took it up.
Finance Secretary Mark Drakeford said: “We believe it is reasonable for visitors to contribute towards infrastructure and services integral to their experience, as they do in so many other parts of the world.”
The Welsh Conservatives see it differently.
“We believe it is bad for Wales and bad for the Welsh tourism sector which forms such an important part of the Welsh economy.”
Likewise, there is a similar split among small businesses reliant on tourists’ spending, with some in favour while others feel it will impact their earnings.
