The Visitor Levy Bill allows councils in Wales to introduce a tourist tax.
Mark Drakeford, finance secretary, 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.”
The new law gives councils the power to introduce a tourist tax after consultation.
It has set the levy at 75p per person per night for hostels and campsites, and £1.30 for other accommodation.
Under 18s in shared accommodation are exempted.
Councils will be able to use the funds for ‘tourism-related’ expenses, such as toilets, footpaths, beaches, visitor centres, and activities.
The law also establishes a national register for all visitor accommodation providers in Wales, which will be managed by the Welsh Revenue Authority (WRA).
From Autumn 2026, anyone charging visitors to stay overnight in Wales must sign up.
But the earliest a council could introduce the tourist tax is 2027.
Rebecca Godfrey, interim chief executive of the WRA, said: “We’re delighted to support local authorities with the collection of the levy and implement the new visitor accommodation register.
“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.”
