The Welsh Tourism Alliance has said it is disappointed with the details laid out in Monday's announcement to introduce a tourist tax in Wales.

The new Visitor Accommodation bill proposes giving local authorities the power to introduce a visitor levy - a small charge paid by people staying overnight in visitor accommodation.

The bill - introduced in the Senedd on Monday, 25 November - “will raise additional funds for local authorities to support the long-term sustainability of our tourism industry,” the Welsh Government said.

Confirming the introduction of the new Bill, Finance Secretary Mark Drakeford said the levy would be set at 75p per person per night for people staying in hostels and on campsite pitches, and at £1.25 per person per night for those staying in all other accommodation types.

Chair of the Wales Tourism Alliance, Llanrhystud businessman, Rowland Rees-Evans, said in response: "The tourism and hospitality industry contributes billions of pounds annually to the Welsh economy and employs over 11 per cent of the working population and the Wales Tourism Alliance does not believe that a Visitor Levy is the right solution for Wales.

"However, since it became clear that a Visitor Levy is a preferred policy for the Welsh Government. we have put a huge amount of work in to ensure that any proposals would both recognise the importance of tourism to Wales and be fit for purpose.

"We are disappointed that a number of the key points on which we felt we had reached an understanding with the Welsh Government have not been adequately reflected in the proposed policy.

"In particular we feel that the Welsh Government has missed a key opportunity to establish a registration scheme for self-catering accommodation that would have incorporated key health and safety criteria and assured visitors that their accommodation meets basic assurance standards.

"What has been proposed will instead increase the costs for tourism and hospitality businesses, which will be passed on to our visitors, without any perceived 'added value'.

"We are also disappointed that there is no clear commitment that the funding raised by the levy will be dedicated to improving the visitor experience in Wales. We had emphasised the need for tourism and hospitality businesses and representative bodies to be involved with the decision making process on how the levy would be spent, but see no commitment to this.

"This was the Welsh Government’s opportunity to deliver a gold standard in tourism and accommodation – setting Wales apart from the rest of the UK. Instead it has merely made Wales more expensive without any perceived added-value for our visitors."

William McNamara, Chief Executive of Bluestone National Park Resort in Pembrokeshire, added: “While we have slightly more clarity on the proposed visitor levy, including the £1.25 overnight charge, there remain concerns about its potential impact on the tourism sector. Wales risks becoming less attractive to visitors, especially families, who may view this as an additional cost in an already competitive UK market – particularly as this levy is not being introduced in England. The flexibility for councils to raise charges in the future also adds an element of uncertainty that must be carefully managed.

“At Bluestone, we are proud to offer sustainable, luxury breaks that celebrate Wales’ unique heritage and natural beauty. We recognise the need to invest in local infrastructure and services, but it is crucial that this levy is implemented thoughtfully and transparently to support both visitors and businesses – especially for those already navigating economic challenges.

“Tourism is the backbone of communities like Pembrokeshire, and reinvestment in rural areas can undoubtedly bring benefits. However, the success of this levy will depend on clear accountability for how funds are used and a commitment to ensuring Wales remains a welcoming and competitive destination for all.”