Preliminary estimates of potential ‘tourism tax’ revenues in Wales

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Published: September, 2022
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In research undertaken for the Welsh Government in early 2021, LE Wales provided preliminary estimates of potential revenue from applying a tourism tax in Wales. We used public data on tourism in Wales for 2019 to estimate the potential revenues from a range of tourism tax options, as if they had been applied at an all Wales level in 2019. The preliminary tax revenue estimates from applying a flat tourism tax for Wales at a national level range from £14 million to £113 million depending on the type of tax policy and the level of the tax; and applying a variable tax for Wales yields tax revenue estimates between £12 million and £50 million, depending on the tax policy and tax level. Our analysis assumed no no behavioural response, i.e. that the introduction of a tax does not affect the number of visitor nights, spend on accommodation etc.