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Plans for a £1.30-a-night tourism tax in parts of Wales from 2027 have been given Royal Assent from King Charles III.

The tax would raise around £33m a year if implemented across the country but the 22 councils in Wales will be given powers to decide whether to introduce a levy locally.

People staying in hostels and campsites would pay 75p per person per night, with under-18s exempt from the lower rate of the tax which would be introduced in 2027 at the earliest.

Councils will decide how money raised can be used for tourism-related expenses – such as improving toilets, footpaths, beaches, visitor centres and activities.

The Welsh Revenue Authority (WRA) will collect and manage the levy for councils.

A register of visitor accommodation providers operating in Wales will also be established by the bill, laying the groundwork for licensing plans set to be brought forward separately.

There is no cost to register and, from autumn 2026, anyone charging visitors to stay overnight in Wales must sign-up.

Supporters of the policy argue it will ensure visitors contribute to the cost of services with revenue reinvested, while detractors warn the tax will put tourists off and damage Wales’ economy.

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

Wales’ finance secretary, Mark Drakeford, said: “The visitor levy represents a small contribution that will make a big difference by helping to maintain and enhance the very attractions that make Wales such a wonderful place to visit and live.

“This historic legislation gives Wales the same tools used so successfully by destinations all over the world to balance the benefits and pressures of tourism between visitors and residents.”

Rebecca Godfrey, interim chief executive of the Welsh Revenue Authority said: “Our proven track record managing Wales’ devolved taxes means we are well positioned to administer the register and levy efficiently. We’ll work with providers and the industry to help everyone prepare for autumn 2026.”