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WALES TOURISM TAX: Caravan holiday families face 26% cost hike under levy plans — while five-star hotel guests pay just 1% more

Families taking affordable caravan and motorhome holidays in Wales face a cost increase more than 25 times higher than business travellers staying in luxury hotels under the Welsh Government’s tourism levy plans — and the industry is demanding an urgent review.

The warning comes from the Holiday and Residential Parks Association (HARPA) and the Caravan and Motorhome Club, who say the £1.30-per-person-per-night levy — passed by the Senedd last year and set to come into force from 2027 — has been designed in a way that disproportionately punishes budget holidaymakers.

The maths is stark. A family of five staying on a Welsh caravan or motorhome pitch costing an average of £25 per night would pay £6.50 extra per night in levy charges — a 26% increase on their costs. Meanwhile, a single business traveller staying in a five-star Cardiff hotel at £130 a night would pay the same £1.30 — just 1% of their bill.

HARPA director-general Debbie Walker said the current tiering system was fundamentally unfair to those who could least afford it. “We understand that local authorities need to raise revenue, but this approach disproportionally hits family holidaymakers seeking a low-cost break,” she said. “It is simply not fair to put families holidaying in their own accommodation in the same tier as someone staying in a five-star hotel.”

Harvey Alexander, CEO of the Caravan and Motorhome Club, said he was disappointed with the Welsh Government’s approach. “We have consistently advocated a fair, flat-rate, lower-tier levy across all campsite pitches, ensuring the great outdoors remains accessible and affordable for everyone — whether they stay in a tent, a caravan, or a motorhome,” he said.

The industry has also warned of an unintended consequence that could undermine the levy’s purpose entirely. If managed caravan parks become too expensive, some holidaymakers may abandon them in favour of informal overnight stops in laybys and car parks — removing them from the regulated sector and depriving local economies of spending while creating environmental and waste management problems.

Both organisations are calling on the Welsh Government to review the tiering system immediately. The tourism sector’s own data shows that caravanning and camping generates £1.65 billion in visitor expenditure and supports more than 30,000 jobs in Wales — making it one of the country’s most economically significant holiday industries.

Walker said the inconsistency in the current system was impossible to justify. “The Welsh Government’s tiering system is inconsistent and difficult to justify. We are asking the Government to review it immediately and to keep camping and caravanning affordable,” she said.

The tourism levy has proved one of the most contentious pieces of legislation to come before the Senedd in recent years, with supporters arguing it will fund improvements to local infrastructure and opponents warning it risks damaging Wales’s reputation as a value-for-money destination.

Related stories from Swansea Bay News

Tourism tax: Will it ‘support tourism’ or ‘devastate the sector’?
The debate before the vote — and why the industry has been warning about this from the start.

Tourism tax gets Senedd approval: councils to decide on £1.30-a-night levy from 2027
How the levy was passed and what it means for Welsh councils and visitors.

Tourism’s annual value to Swansea Bay economy tops £600m mark for first time
Why the stakes are so high — tourism is one of our region’s biggest economic drivers.

Swansea holiday let occupancy up 47% but experts warn Welsh Gov policies forcing holidaymakers to fight over fewer rentals
More pressure on the Welsh Government over the impact of its tourism policies on visitors and operators.

Gloomy outlook for attractions in Wales
The wider picture for Welsh tourism — and why the industry can’t afford more headwinds.

Swansea car retailer celebrating after two models recognised with award

Judges said the compact mild hybrid SUV was a fantastic used buy, incorporating a timeless design both inside and out. With a range of reliable powertrains across petrol, diesel, pure-electric and plug-in hybrid, they commented that it provided something for everyone.

The triumph follows FRF Volvo Swansea’s success at the Caravan and Motorhome Club’s annual awards, where the car retailer’s Plug-in Hybrid, the XC90 was named Hybrid Towcar of the Year.

The Towcar of the Year Awards are the UK’s longest-established towing awards. This year, vehicles were put through their paces to assess not only their towing ability but also their practicality, comfort and quality.  

With its effortless performance and ease of driving, judges for the Caravan and Motorhome Club praised the XC90 for being an “Absolutely superb towcar. It is as compromise-free as you could wish for. It handles superbly with the caravan, whilst remaining comfortable and sure-footed. The interior is absolutely beautiful and feels like somewhere that you could enjoy a long-distance cruise to the Continent with a caravan in tow.”

John Radcliffe at FRF Volvo Swansea on Valley Way, said:

“We’re thrilled to receive such praise for the Volvo XC40 and XC90, from not one but two prestigious awards bodies.

“To triumph after a rigorous judging process is demonstrative of the quality and attention Volvo devotes to its models, making cars practical to own and use, all whilst staying desirable, luxurious, safe and sustainable.

“For drivers in Swansea who are looking to learn more about the XC40 and XC90, FRF Volvo Swansea has models available to see first-hand and a friendly team of experts to answer any questions.”

To find further information about the XC40 and XC90, visit frfvolvo.co.uk or call 01792 310999.

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