Three projects have just started in Wales to find out the effect of a tourist tax will have on the country including the introduction of a levy on holiday renters which could come into force.

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The Welsh government has launched the three investigations, under the guidance of the partnership between the Plaid Cymru and Labour parties, which will gauge the economic impacts of this type of tax. The projects are also tasked to find out how other countries introduced a tourist tax and research the socio-demographic effects of the housing provision across Wales. 

The projects’ reports will be sent to the Welsh government by the end of summer and will be followed by a consultation process on suggested measures later in the year.

Wales’ minister for finance and local government Rebecca Evans, says: “Visitor levies are a common feature in tourist destinations internationally. They are an opportunity for visitors to make an investment in local infrastructure and services, which in turn make tourism a success. Without such a levy, local communities face an undue burden to fund local services and provisions on which tourists rely."

Mark Drakeford, Wales’ First Minister, has already backed the introduction of a tourist tax on holidaymakers renting a holiday let or short let property, as he claims it will almost certainly help local communities by easing the burden of rates that pay for the many facilities and services that tourists enjoy.

Anti-Airbnb type let properties and anti-second homes sentiment is steadily increasing throughout Wales.

One example is Denbighshire’s recent report highlighting the crisis of ever increasing numbers of homes being let out as holiday accommodation.

A council spokesperson says: “Looking at these properties that are being used in summer, of course, and empty during the winter – and we are losing revenue as well from this – it concerns me that we have got so many people homeless in Denbighshire that we can’t use these properties. A lot of young people are not able to get on the housing ladder due to this, and we are losing a lot. They are moving away.”

He continues: “This issue is very important for many areas in Wales on many levels, the economy, the effect on everything, the Welsh language and also in rural areas.”

New regulations introduced last week with three new classes of housing property for the Welsh planning system which are:-  a primary home, secondary home and short-term holiday accommodation.

Councils will be able to make changes to their own planning systems for when owners wanting to ‘switch’ their property’s ‘classification’ to a different class and will have to receive planning permission to do so.

Councils will also be given powers to introduce higher Land Transaction tax - Welsh equivalent to the stamp duty - on short lets’ properties and second homes.