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The WelshParliament has given the green light to a £1.30-a-night tourism tax in parts of Wales from 2027.

Senedd members voted 37-13 in favour of the bill, which will see guests charged £1.30 each, plus VAT, for stays in hotels, B&Bs and self-catering accommodation.

Those staying in hostels and campsites would be charged 75p per person per night, with under 18s exempt from the lower rate of the tax, set to be introduced in 2027 at the earliest.

The tax could generate around £33m annually if implemented nationwide, but the decision to introduce a local levy will be left to the 22 councils in Wales.

So far, only Cardiff and Anglesey councils have indicated plans to implement a levy, while other authorities are yet to decide or have "no plans" to introduce a tax, reports Business Live.

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The bill also paves the way for a register of visitor accommodation providers operating in Wales, laying the groundwork for licensing plans set to be brought forward separately.

Supporters argue that the levy will ensure visitors contribute to the cost of services with revenue reinvested, while critics warn the tax could deter tourists and harm Wales' economy.

Tourism taxes are already common on the continent, and closer to home, Scottish councils will gain similar powers next year, while Manchester introduced a visitor charge in 2023.

In a pivotal debate leading up to the crucial vote, Finance Secretary Mark Drakeford addressed the Senedd, saying: "By passing this bill, we will give councils the choice to introduce a modest additional charge which would be reinvested to support a thriving, sustainable tourism industry."

Prof Drakeford emphasised the Welsh Government's aim to strike a fair balance between the pressures and benefits of tourism, with visitors contributing towards the upkeep of infrastructure and services. Drawing on international examples, the former first minister cited "from Iceland to New Zealand" to demonstrate how similar levies have successfully raised funds without discouraging tourists.

Sam Rowlands, the Conservative shadow finance secretary, slammed the bill, labelling it "bad for Wales and bad for the Welsh tourism sector". He warned that the proposed tourism tax could jeopardise jobs and damage the economic landscape, noting widespread opposition from the tourism industry itself.

The Welsh Conservatives vowed to scrap the tax if the party wins the 2026 Senedd election.

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Luke Fletcher of Plaid Cymru, holding the position of shadow economy secretary, has strongly backed his party's stance, declaring: "There is a genuine opportunity here for us to create a sustainable tourism sector that works with both our communities and businesses.

"The very same arguments were happening when they were looking to introduce a tourism levy in Barcelona and in other places, so I do really believe we will look back at this as a positive step forward for our communities."

Labour's Jenny Rathbone highlighted the influx of fans coming to Cardiff for the Oasis gig and the subsequent costs faced by local communities in backing the bill. She provocatively questioned: "Why should poor people rather than visitors have to pay?".