Wales is under increasing pressure to exempt children from its proposed 2027 tourism tax, as nations like France, Spain, and Italy set family-friendly standards. The tourism levy, aimed at promoting sustainable tourism, has sparked debate within the hospitality sector. UKHospitality Cymru is urging the Welsh Government to consider exemptions for children, citing European models that help reduce the financial burden on families.
The proposed levy, which will make Wales the 25th European country to introduce a tourism tax, sets rates at £1.25 per night for most accommodations and £0.75 for campsites and dormitories. Many European countries already exempt children from tourism taxes to encourage family travel, including France, Spain, Portugal, Italy, and Croatia.
European Models of Child Exemptions
France: Children under 18 are generally exempt.
Spain: Most regions exempt children under 16.
Portugal: Children under 13 are typically exempt.
Italy: Exemptions vary, with some cities exempting children under 10, 12, or 14, and Milan exempting all children under 18.
Croatia: Children under 12 are exempt, and those aged 12-18 receive a 50% discount.
Lithuania, Latvia, Malta, and Morocco: Exempt children under 18 and 12, respectively.
However, not all countries offer child exemptions. Nations like Greece, Germany, Austria, Belgium, and the Czech Republic impose the levy regardless of age.
Welsh Government’s Impact Assessment The Welsh Government has explored the possibility of exempting children and teenagers from the tax, but an impact assessment revealed that doing so could reduce levy revenues by about one-third. To offset the loss, adult rates may need to rise, which has been met with criticism from the hospitality industry.
Despite this, the Government has emphasized that the tourism levy will be “hypothecated,” meaning funds will be dedicated to tourism-related projects, such as upgrading infrastructure and creating amenities that benefit both locals and visitors.
Hospitality Industry Concerns UKHospitality Cymru argues that including children in the tax could deter family travel, a crucial market for the tourism industry. The organization believes that exemptions for children would align Wales with European standards, making the country more appealing as a family-friendly destination.
The group also raised concerns about transparency, urging the Welsh Government to ensure levy funds are used exclusively for tourism development, rather than replacing existing local government funding.
The Importance of Exemptions for Family Travel Exemptions for children can have a significant impact on making travel more affordable for families:
Encouraging Longer Stays: Families are more likely to extend their vacations if exempted from the tax, benefiting local economies.
Promoting Inclusivity: Lower costs make travel more accessible to families from lower-income backgrounds.
Fostering Tourism Growth: Family-friendly policies help position Wales as an attractive and welcoming destination.
Localized Approach and Regional Autonomy Wales’ tourism levy will be implemented by individual county councils, allowing for flexibility but also raising concerns about inconsistent experiences for tourists across regions. A balanced approach is needed to ensure the levy achieves its sustainability goals while maintaining a cohesive national policy.
Learning from Scotland’s Experience Scotland’s existing tourism tax could serve as a model for Wales. While both nations aim for sustainable tourism, Scotland’s experience highlights the importance of clear exemptions and transparent fund allocation. Wales has an opportunity to refine its approach by learning from these precedents.
As Wales finalizes its tourism tax policy, incorporating child exemptions could:
Align with European practices.
Strengthen its reputation as a family-friendly destination.
Help mitigate the economic impact on families and local businesses.
The Welsh Government might also consider a tiered tax structure, offering reduced rates for budget accommodations and exempting children. This would strike a balance between generating revenue and promoting inclusivity, ensuring Wales remains a competitive and attractive destination.
Wales’ 2027 tourism tax is a critical step toward sustainable tourism, but its success depends on careful implementation. By exempting children, the Welsh Government can align with European norms, support family travel, and foster a welcoming environment for all travelers.
