The reduction, which will apply from 1 April next year, will benefit eligible properties with a rateable value below £51,000, including pubs, restaurants, cafés, and hotels and will be fully funded through changes to the business rates system.
It will exceed the temporary 15% relief for food and drink hospitality introduced by the government in April this year.
“Our high streets are the heartbeat of communities right across Wales, and the businesses that fill them deserve our backing,” said First Minister Rhun ap Iorwerth.
“This 30% cut to rates for pubs, cafés, gyms, hotels and so many other local favourites is about giving those businesses the confidence to invest, grow and keep serving the communities that rely on them.
“We’re making the system work better for the sectors that bring our town centres to life.”
UKHospitality Cymru has welcomed the announcement but says that 16% of ratepaying hospitality businesses, often very significant employers in their local communities, will not feel the benefit.
With a surcharge being applied to properties with a rateable value over £100,000, more than 500 venues will pay even more on their business rates bills, it adds.
“The Welsh Government has recognised that hospitality and leisure businesses are suffering under a huge tax burden and I’m pleased they have acted to reduce business rates bills for the majority,” says David Chapman, executive director at UKHospitality Cymru.
“A lower multiplier for hospitality is a common-sense solution that we put forward in our manifesto and have campaigned for extensively. I’m pleased that Ministers in the Welsh Government have taken the time to engage with UKHospitality Cymru seriously on this and to act accordingly.
“However, I do have concerns that a significant number of hospitality venues will not be eligible for support. More than 500 venues, which are significant employers, will see their rates bills rise even further, when they are straining under the same financial pressures. That just doesn’t make sense.
“Given the Welsh Government’s clear and genuine intention to support hospitality, I hope it will now make the necessary changes to this policy to exempt hospitality businesses from the surcharge to ensure no venue will see their rates increase, at the very least.
“This business rates reduction must be a downpayment on a whole hospitality solution that goes even further at the Welsh Budget and I look forward to continue working with the Welsh Government to deliver growth, create jobs and support our communities.”
The move follows a 20% cut in business rates for pubs and similar venues in England from next year.