Babies and infants staying in some types of visitor accommodation in Wales will be included when calculating the Welsh Government’s new tourism levy.

The Visitor Accommodation (Register and Levy) (Wales) Act 2025 will allow local authorities to introduce a charge on overnight stays, with councils set to decide locally.

The levy will operate on a two-tier system depending on the type of accommodation.

A lower rate of 75 pence per person per night will apply to shared accommodation, including hostel dormitories, bunkhouses, bothies and tent pitches at campsites and events.

A higher rate of £1.30 per person per night will apply to all other visitor accommodation, including hotels, bed and breakfasts, guesthouses, self-catering accommodation, holiday cottages, lodges, chalets, holiday lets, glamping sites, shepherd’s huts, homestays such as Airbnb, caravan and motorhome pitches, and temporary accommodation for events.

The issue was raised in a written question from Brycheiniog Tawe Nedd MS Iain McIntosh, who asked whether babies and infants would be included in the charge and what assessment had been made of the impact on family tourism in Wales.

Responding, Cabinet Secretary for Finance Elin Jones set out how the levy would apply across different types of accommodation.

She confirmed that in shared accommodation such as tents in campsites and hostels, under-18s would not be liable for the charge.

However, she said that in all other visitor accommodation types, all guests staying overnight would be included in the chargeable rate.

She added that the levy is an indirect tax on accommodation providers rather than visitors.

“Like other indirect taxes on providers, visitors are not liable to pay the visitor levy, it is the visitor accommodation provider who is liable. Visitor accommodation providers may choose to pass this cost on to visitors but are not compelled to do so. Where providers pass the costs on to visitors, the costs will be incurred by the visitor who is paying for the accommodation,” she said.

The response was criticised by Mr McIntosh, who said it effectively confirmed that babies and infants would be included within the scope of the levy in some types of accommodation.

He said: “I find that absolutely astonishing.

“At a time when tourism businesses across Wales are already facing rising costs, higher taxes, increased regulation and ongoing economic pressures, the Welsh Government has decided that families with babies should be caught up in its latest tax grab.”

He added that many businesses “will have little choice” but to pass the cost to customers and questioned the impact on family tourism.

Mr McIntosh added: “Tourism is one of Wales' most important industries. It supports thousands of jobs, sustains local businesses and brings vital income into communities across the country. Rather than backing the sector, the Welsh Government seems determined to make Wales a less attractive and more expensive place to visit.”

Powys County Council has not yet decided whether to introduce the levy locally.

Last September, councillors were presented with five options for how to proceed. Committee members supported officers’ recommendation that the council is “minded not to implement the levy, but [to] undertake an engagement exercise with residents, businesses and tourism stakeholders of Powys to gather evidence and views.”