Visitor Levy Information for Businesses
Conwy County Borough Council is currently exploring whether to consult on a Visitor Accommodation Levy. This information is provided to help businesses understand the proposal and what future steps may look like. No decisions have been made about introducing a levy.
Decision Making Timeline and What It Means for Businesses
- May 2026 – Consultation approved
Conwy Council approved on 14th May 2026 for us to proceed with a consultation on the potential introduction of a Visitor Levy in the county.
This is a consultation exercise only, and no decision has been made at this stage. It is intended to gather comprehensive feedback from residents, businesses, stakeholders and visitors.
The consultation will run for 9 weeks from 20th May 2026 until 17th July 2026. Details of events will be published imminently.
- Early September 2026 – Economy and Place Overview and Scrutiny Committee
All consultation feedback (including survey responses, meetings and written submissions) will be reviewed and summarised in a report to the Economy and Place Overview and Scrutiny Committee. The committee will discuss the findings and make recommendations based on the evidence.
- Late September 2026 – Full Council
Full Council will decide whether to adopt a Visitor Levy or not.
If approved, the earliest possible start date would be 1 October 2027, after the required 12 month notice period to the Welsh Revenue Authority (WRA). The WRA will manage registration of visitor accommodation and collection of the visitor levy.
Visitor Levy - Frequently Asked Questions
1. Introduction & consultation
1.1 Has Conwy decided to introduce a Visitor Levy?
No. Conwy County Borough Council hasn't made a decision yet. A proposal to carry out a consultation to seek the views of the tourism trade, local residents and visitors about the Visitor Levy will be presented to Full Council in early 2026. The Council is being asked whether to start a consultation process in Conwy County, not on whether to introduce a visitor levy. Any final decision to introduce a visitor levy would be taken by Full Council at a later date.
1.2 How would the levy affect my business?
If introduced, the levy would be added to the cost of overnight stays and collected by the Welsh Revenue Authority (WRA). You will be required to process quarterly or annual returns depending on how much levy you collect annually.
1.3 Will I need to register my accommodation?
Yes. All visitor accommodation providers in Wales will need to register with the WRA from Autumn 2026, regardless of whether a levy is introduced.
1.4 How can I have my say?
If we launch a consultation, businesses will be invited to share feedback. Your input will help shape Conwy's decision.
1.5 Are we seeking the views of visitors?
Yes. The visitor levy consultation in Conwy County is open to all visitors, residents and businesses. We actively encourage businesses, organisations, community groups and stakeholders to share the consultation with their visitors to ensure their views are captured.
1.6 Due to the economic climate and pressures on both operators and visitors, is there a possibility that the levy can be delayed?
Conwy County Borough Council has not yet made a decision on whether to adopt a visitor levy. A decision is scheduled for 24 September 2026 and will take account of consultation responses, economic impacts and Welsh Government guidance.
1.7 Is there a Plan B to generate additional income to support the sector if the levy doesn't go ahead?
No alternative mechanism to the visitor levy model is being proposed. The sector would therefore continue to receive funding through the current channels.
2. Understanding the Visitor Levy
2.1 Why is the levy only on overnight stays and not day trippers? Is there a way of targeting day visitors?
The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 received Royal Assent on 18 September 2025. The Act specifically places a visitor levy on all eligible overnight accommodation and not on day visits. This is a policy decision made by Welsh Government..
2.2 Why aren't you looking at day visitors and those abusing the system, e.g. wild camping?
The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 applies only to eligible overnight accommodation. The legislation does not provide powers to apply a levy to day visitors, wild camping or other forms of informal visitation. Matters relating to compliance and enforcement are being developed separately by the Welsh Revenue Authority (WRA).
2.3 What guarantees are there that the levy won't increase year on year?
The rates for the visitor Levy in Wales are determined by the Welsh Government. Any changes to the rates would have to be agreed by the Senedd.
In addition to the Welsh Ministers having the power to change the lower and higher rate of the levy, they may also give principal councils the ability to add an amount to the lower and higher rate of the levy for their area.
Principal councils will only be able to add an amount to the existing rates if the Welsh Ministers make regulations giving them the power to do so. Subject to future regulations being made, principal councils will not be able to take steps to change the levy within the first 12 months of the levy being introduced to their area.
Before regulations are made, Welsh Ministers must consult:
- Every principal council;
- Every National Park Authority in Wales;
- Organisations representing tourism businesses in Wales;
- Organisations that promote or facilitate tourism in Wales;
- Any other persons considered appropriate to consult.
Should a principal council decide to apply an additional amount to the levy rate in their area following any future regulations, they would need to go through a local process of consultation, decision-making and notification similar to that used for introducing a Visitor Levy. The WRA will also provide information to registered visitor accommodation providers in the relevant Visitor Levy area regarding any changes.
3. When does the levy apply?
3.1 When are bookings subject to the levy?
Six months after a council notifies the Welsh Revenue Authority (WRA) of its intention to adopt a visitor levy, accommodation providers will need to start applying the levy on new bookings. This includes any extra nights or visitors added to existing bookings which surpass the implementation of the date of the levy.
For example, if Conwy Council decided to adopt a visitor levy from 1 October 2027, accommodation providers would need to start applying the levy to new bookings made from 1 April 2027.
3.2 What is a guest books for more than 31 nights?
A stay will be outside the scope of the levy if one contract entitles the same named individual or individuals to stay more than 31 nights, whether or not those nights are consecutive, and they are entitled to stay on every night covered by that contract. If those conditions are not met, the stay may still fall within scope.
3.3 Are stays of my employees, contractors or apprentices subject to the levy?
No, if they are staying in your accommodation as part of their job. For example, your staff servicing your visitor accommodation at the time of the stay, or employees staying overnight to attend business meetings or evening events.
3.4 Do non-resident owners pay the levy when visiting their own property?
No. If you own a holiday home and use it yourself, you will not pay the levy because no booking takes place. However, the levy will apply if the property is treated as visitor accommodation and made available to third parties on a short-term basis - for example, if it is avertised or marketed for stays of 31 nights or fewer, whether or not those nights are consecutive.
3.5 I am a resident of Conwy County. If a visitor levy is introduced, do I still need to pay it when staying at visitor accommodation within the county?
Yes. The levy is based on staying in eligible visitor accommodation rather than where a person normally lives.
4. Collecting & paying the levy
4.1 Who is responsible for collecting and paying the levy?
The visitor accommodation provider is responsible for paying the levy to the Welsh Revenue Authority (WRA). In most cases, this is the person or business that provides, or offers to provide, the accommodation and occupies the premises. You can choose whether to pass the cost on to visitors, but you remain responsible for paying the levy even if you do not charge it separately.
4.2 Who collects the Visitor Levy?
If a visitor levy is introduced in a local authority area, it will be collected by the WRA. It will then be passed over to the relevant county council with the administration fee taken out.
4.3 Why does the Welsh Revenue Authority need to collect the levy?
Welsh Government has appointed the WRA to collect the Visitor Levy in Wales. As the WRA currently collects Land Transaction Tax and Landfill Disposals Tax, it has the skills and experience required to manage collection of the Visitor Levy centrally.
4.4 How much administration fee will the Welsh Revenue Authority take?
The WRA will take up to 10% of the total amount of levy collected within a destination area to cover the costs of administering the levy.
5. Online Travel Agents (OTAs)
5.1 How will the levy be presented as an additional cost on online booking platforms?
As OTAs all have different platforms, this will vary depending on the provider. If the levy is implemented in Conwy County, accommodation providers will need to seek advice from their individual booking platform. Many booking and software providers may introduce changes to help manage the levy, as has happened in other countries.
5.2 OTA's take commission on all bookings. Will this commission be applied to the total cost of the booking, including the levy?
The Visitor Levy is displayed on booking platforms as per Consumer Law. Please contact your booking platform to learn more about how this will appear.
Booking platforms commission policy will vary. Please contact your booking platforms.
5.3 Many online travel agents allow users to sort accommodation options by price. Will the Visitor Levy be included in the total price shown?
Yes. The total price shown will include the cost of the Visitor Levy.
5.4 How can self-catering properties verify the correct amount of levy has been collected when people check-in themselves?
The total amount of levy collected will correlate to the total number of people included on the booking. Accommodation providers will be expected to maintain booking records that demonstrate the number of guests, length of stay and levy collected. Self-check-in arrangements do not change these requirements.
5.5 Since the amount of visitor levy depends on how many people stay at the accommodation, how should the price be shown to customers when advertising the accommodation? For example, if a self-catering cottage is priced at £1,000 for one week, should the advertised price state: £1,000 + VAT (£200) + visitor levy (£26.00, or £31.20 including VAT), giving a total of £1,231.20 based on 10 guests?
Under the Digital Markets, Competition and Consumers Act 2024, it is presumed that providers will need to clearly indicate the total price a customer will pay for something inclusive of fees, local taxes (which include the levy) and any other applicable charges. So, if an accommodation provider is passing the cost of the levy onto the consumer, they'll need to include it in the price the customer sees for a property before booking.
In the example above, that would mean the £1,231.20 would be displayed, if all the costs of the levy are being passed onto the customer and the booking is being advertised for 10 people.
5.6 How will refunds on OTA booking sites be managed?
If visitor accommodation is booked via an online travel agent and the visit is cancelled before the booking date, there is no requirement to refund any visitor levy because it will not have been collected. Customers are only charged once the visit has taken place.
6. Changes, cancellations & refunds
6.1.1 What happens if a guest arrives late?
A visitor levy would still apply and the amount collected must correlate to the total number of nights on the original booking or contract.
Scenario 1
Joe books a self-catering apartment for five nights but arrives one day late. The accommodation provider does not change the original booking and Joe continues to pay for five nights. As the contract is unchanged, the levy remains payable for five nights.
Scenario 2
Hannah books a five-night hotel stay but arrives one day late. The hotel agrees to amend the booking so she only pays for four nights. As the contract changes from five nights to four, the levy is payable on four nights.
6.2.1 How will refunds be managed if a booking is cancelled before the expected arrival date?
No Visitor Levy is due on overnight stays that do not go ahead. If the booking is cancelled and no overnight stay takes place, the levy does not arise. If the accommodation provider has already collected the levy, they must refund it to the visitor.
6.2.2 How is the Visitor Levy managed if a guest doesn't turn up for their booking ("no show")?
No Visitor Levy is due in "no show" instances. The guidance states that accommodation providers do not pay the levy on bookings where none of the visitors arrive because no overnight stay has taken place. If the levy was collected in advance, it should be refunded to the visitor.
6.3.1 Can visitors get refunds?
Visitors can apply for a refund from the WRA after their stay if, at the time of their stay, they were:
- Staying as a carer looking after a disabled person;
- Temporarily homeless;
- Fleeing harm or domestic violence.
The WRA will publish further guidance about visitor refunds before April 2027.
7. VAT & taxation
7.1 Are we assessing the impact of whether introducing a visitor levy causes businesses to exceed the VAT threshold?
Yes. Businesses responding to the visitor levy consultation questionnaire will be asked whether introducing a visitor levy would cause them to exceed the VAT threshold.
7.2 Why is VAT subject to the Visitor levy?
HMRC has determined that VAT applies in accordance with existing VAT legislation. Questions relating to VAT treatment should be directed to HMRC or a professional tax adviser.
7.3 Has the issue of applying VAT to the levy been raised with HMRC?
The Welsh Revenue Authority (WRA) has held discussions with HMRC to explain the concerns raised. No further comment or decision has been made by HMRC.
8. Quarterly & annual returns
8.1 What is the process for annual returns?
The accounting period for annual filing runs until 31 March. You must file and pay your levy by 31 May of that year.
For example, the return for the period 1 April 2027 to 31 March 2028 must be filed and paid by 31 May 2028.
8.2 What is the process for quarterly filing of levy returns?
Quarterly returns cover:
- 1 April - 30 June
- 1 July - 30 September
- 1 October - 31 December
- 1 January - 31 March
Returns and payments must be made within 60 days of the end of each period:
- 29 August for 1 April - 30 June
- 29 November for 1 July - 30 September
- 1 March (or 29 February in a Leap Year) for 1 October - 31 December
- 30 May for 1 January - 31 March
8.3 Do I still need to file a return if I had no liable stays?
Yes. If you are a visitor accommodation provider in an area where the levy applies, you must file a return for every accounting period, even if no levy is due. This is known as a nil return.
9. Spending of levy funds
9.1 If a levy is charged, who will decide how any funds raised from the Visitor Levy will be spent?
The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 requires a Visitor Levy Forum to be established no later than three months after the levy becomes operational within a councl area. The forum's views must inform decisions on the reinvestment of levy proceeds.
The council must have regard to any information or advice provided by the forum on:
- How levy proceeds may be used for destination management and improvement.
- Any proposal to:
- Introduce an additional amount to the levy;
- Amend an existing additional amlount;
- Remove an additional amount previously applied.
9.2 Will the money be ring-fenced and protected by law?
Yes. The funds raised through the levy will be ring-fenced specifically for destination management. Visitor Levy revenues received by a local authority must be allocated towards destination management and improvement purposes within its area, as set out in Section 44 of the 2025 Act. Wherever appropriate, this should be linked to the local visitor economy strategy.
9.3 Will money raised in a specific town in the county be spent in the same town?
This would be decided by the Visitor Levy Forum if a visitor levy is introduced in Conwy County.
9.4 How can we ensure that the money isn't just allocated to honeypot areas?
Ensuring that funds are allocated fairly and in line with local visitor economy strategies is a core responsibility of the Visitor Levy Forum.
9.5 For every pound collected, how much comes back to Conwy?
At least ninety percent of all funds raised within a local authority area will be returned to that same area.
For visitor information, visit the Visitor FAQs page.
