Conwy councillors are being recommended to defer any decision to introduce a Visitor Levy, with the council saying it wants more evidence and practical experience before committing to the new charge.

The issue comes before the Economy and Place Overview and Scrutiny Committee on September 9, with the findings of Conwy’s statutory consultation and supporting assessments due to be considered. The recommendation will then go before Full Council on September 24, when councillors will have the opportunity to decide whether to accept it.

The proposed delay does not mean the council is abandoning the idea. Instead, officers are recommending that Conwy waits until there is more evidence about how the new Welsh system works elsewhere and what its effects are before making a final decision.

That is particularly significant because Cardiff has already decided to introduce the levy from April 2027, making it the first Welsh council to do so. Conwy, Gwynedd and Anglesey have been among the authorities considering whether to follow suit.

Under the legislation, councils have the choice of introducing a charge on overnight stays in eligible visitor accommodation. The Welsh Government says the levy is intended to provide additional money to manage the impact of tourism and improve facilities and infrastructure for visitors and local communities.

In Conwy, the consultation ran for just over eight weeks, from May 20 to July 17 this year. The council says the responses, together with economic, environmental and equality assessments, will inform councillors' decision.

The council's own economic assessment estimates that a levy could raise between £1.9 million and £2.1 million a year in Conwy. However, the assessment also warns that the availability and reliability of tourism data, both nationally and locally, is limited, meaning its modelling uses deliberately conservative, worst-case assumptions.

If introduced, the statutory charge would be £1.30 per person per night for most accommodation, including hotels, guesthouses, B&Bs, self-catering accommodation and caravan or motorhome pitches. A lower rate of 75p applies to campsites and shared accommodation such as hostels, with under-18s exempt from that lower-rate charge.

The money could not simply be absorbed into the council's general budget. Welsh legislation requires revenue to be used for purposes including managing the effects of visitor activity, supporting sustainable tourism, maintaining and promoting the Welsh language, and providing or improving infrastructure, facilities and services used by visitors and local people.

There is also an important practical reason for taking time over the decision. The levy would create responsibilities for accommodation providers, who would have to calculate and collect it and pass the money to the Welsh Revenue Authority. Although the provider is legally liable for the levy, it can choose whether to pass the cost on to guests.

The wider Welsh system is also only just getting underway. A national register of visitor accommodation is due to begin from October 2026, providing new information about accommodation across Wales. That could eventually give councils a better evidence base for assessing the size and impact of the visitor economy.

Conwy says the earliest date it could introduce a levy, given the required notice periods, would be October 2027. This means deferring the decision would not prevent the council from introducing the charge later if councillors ultimately decide it is appropriate.

Cllr Sharon Doleman, Cabinet Member for Sustainable Economy and Communications, said tourism was hugely important to Conwy's economy and communities and that councillors would now be able to consider the consultation report, supporting evidence and recommendation before reaching a decision.

The debate is likely to be significant for Conwy, where tourism brings major economic benefits but also creates pressures on infrastructure, services and communities. The central question for councillors will therefore be whether the potential additional income justifies introducing a new charge now, or whether Conwy should wait until there is more real-world evidence from elsewhere in Wales.

The Economy and Place Overview and Scrutiny Committee meets on September 9, followed by Full Council on September 24.