New laws in Wales could damage tourism, experts fear.

Proposals for a new law that would see tourists pay to stay overnight in Wales were tabled in the Welsh Parliament last month. Local councils can introduce a small levy and compel accommodation providers to enter their names on a national register. 

Visitors staying in campsites and hostels would be charged 75p per person per night, while those staying in hotels and room rentals would pay £1.25 tax per person per night.

The Welsh tourist board has debuted a new campaign to celebrate joyful experiences in the country. The campaign aims to attract visitors despite the levy and embraces the notion of ‘hwyl’.

Similar to the Danish ‘hygge’ that describes the concept of cosiness and contentment with the joys of life, the Welsh ‘hwyl’ denotes the deep state of joy that comes with being immersed in the moment.

“Feel the hwyl. Only in Wales” is the board’s new tagline, enticing visitors to experience the serene landscapes, adventure activities and the croeso (welcome) of the Welsh people.

“Whether you’re exploring the rugged coastlines, delving into ancient traditions, or sharing a meal with friends and simply enjoying the warmth of Welsh hospitality, hwyl is a feeling that can transform your visit into an unforgettable experience,” the tourist board said.

Welsh ministers hope that the money raised by the levy will fund improvements to transport links and promote the Welsh language, as it could generate £33 million.

Others fear it will damage the country, as tourism employs 160,000 people, almost 12% of Wales’ total workforce.

The country had 890,000 visitors in 2023, down 13% from its pre-pandemic (2019) numbers. Spending was also down 11%, at £458 million.

A Visit Wales survey found that key concerns include the weather and the country’s 20mph speed limit on restricted roads – though the cost of travel was the main factor. 

There could also be an anti-tourism sentiment putting people off from visiting. Last summer, the Brecon Beacons Park authorities urged people to avoid visiting at peak times due to an influx of tourists.

There was also an increase in council tax on second homes in Pembrokeshire, which saw the number of second homes up for sale increase by 250%, with local businesses saying it could push off-season visitor numbers down.

Penny Paddle, partner at law firm Spencer West and expert on small- and medium-sized enterprises, said the levy “may create financial and operational challenges for businesses in the leisure, tourism and hospitality sectors”. 

Neil Kedward, managing director of Seren, which operates several hotels and restaurants across the country, said: “The levy could needlessly exacerbate existing pressures on the hospitality sector, which is already navigating significant economic challenges. 

“Hospitality businesses are contending with rising operational costs, including substantial increases in wages, higher National Insurance contributions and the persistent effects of the cost-of-living crisis.

“This is all taking place within a stagnating economy that is forecast to struggle for some time. Introducing a tourism levy under these conditions is both puzzling and concerning.”

The Wales Tourism Alliance, representing more than 6,000 firms, claims the Welsh Government has ignored “key points” it put forward during the consultation process for the visitor levy bill.