Cardiff to introduce visitors levy next year

Cardiff will introduce a visitor levy on overnight stays from April 2027 after plans were approved by councillors.

The charge follows new Welsh legislation passed in 2025 which allows local authorities to introduce a small fee for visitors staying overnight.

Cardiff Council said a public consultation on the proposals attracted almost 2,000 responses, with 62% in favour of the levy, 33% opposed and 5% neutral. More than nine in 10 respondents said they were aware of the proposal.

The levy will apply to stays of up to 31 nights in accommodation including hotels, guesthouses, hostels, short-term lets such as Airbnbs, campsites and temporary event accommodation.

Under the scheme, most visitors will be charged £1.30 per person per night, while those staying in campsites or shared accommodation such as hostels will pay 75p. The charge will be subject to VAT where applicable.

Some exemptions will apply, including for people staying longer than 31 nights, those in emergency accommodation arranged by the council, and under-18s staying in campsites or shared rooms.

Council officials estimate the levy could raise around £3.5 million a year, with the money intended to support Cardiff’s visitor economy.

The revenue will be collected by the Welsh Revenue Authority and then passed back to the council. A new partnership forum is expected to be established to advise on how the funds are spent.

The introduction of the levy prompted mixed views during consultation. Supporters pointed to similar schemes in cities across Europe and said the funding could help improve infrastructure and manage the impact of major events.

However, concerns were raised about the potential impact on visitor numbers, the additional burden on accommodation providers and how the money would be used.

Many respondents called for the revenue to be ring-fenced, with clear accountability to ensure it is reinvested in tourism and related services.

Cardiff Council said it will work with businesses and industry bodies, including UKHospitality, to develop plans for how the levy will be used.

Cllr Russell Goodway, cabinet member for investment and development, said the consultation had helped shape the approach.

“The responses clearly set out what businesses and residents want us to focus on,” he said.

Guidance

Rebecca Godfrey, chief executive of the Welsh Revenue Authority, said guidance had been published to help accommodation providers prepare for the new system.

She added that providers would need to account for the levy on bookings made for stays from April 2027, and urged businesses to begin preparations.

The move makes Cardiff one of the first councils in Wales to confirm plans to introduce a visitor levy, with other authorities expected to consider similar schemes.