Cardiff tourism levy could be introduced next year

A visitor levy for overnight stays in Cardiff could be introduced from 2027 after a public consultation found majority support for the proposal.

Cardiff Council has confirmed that 62% of respondents backed the introduction of a levy on overnight visitors, following a 12-week consultation that ran from 1 December and attracted more than 1,500 responses.

The proposed charge would apply to visitors staying in accommodation across the city, including hotels, guesthouses, hostels, Airbnb properties, campsites and temporary event accommodation.

The scheme follows new Welsh legislation passed in September 2025 which allows local authorities to introduce a visitor levy from April 2027.

Under the proposal being considered by Cardiff Council, most visitors would pay £1.30 per person per night, while those staying in campsites or shared accommodation such as hostels would pay 75p per person per night.

The levy would apply to paid stays of up to 31 nights.

Some visitors would be exempt from the charge, including children under 18 staying in campsites or shared rooms, people staying longer than 31 nights, and individuals placed in emergency or temporary accommodation arranged by the council.

Revenue from the levy is estimated to generate around £3.5 million each year for the city.

The funds would be collected by the Welsh Revenue Authority, which would then distribute the income to local authorities.

Cardiff Council says the money would be used to support and grow the city’s visitor economy, with spending guided by a new Visitor Levy Partnership Forum bringing together representatives from the tourism sector.

Consultation responses highlighted both support and concerns about the proposal.

Many respondents said visitor levies are common in major cities across Europe and internationally, arguing that a modest charge could help support tourism infrastructure and manage the impact of major events.

However, some raised concerns about the potential impact on visitor numbers and the additional administrative burden on accommodation providers.

Revenue

Others questioned whether the revenue raised would be used specifically to benefit the tourism sector.

Across the consultation responses there was a strong call for any income generated to be ring-fenced, with clear accountability and visible reinvestment in the city.

The areas receiving the strongest support for investment included tourism marketing and promotion, improved visitor infrastructure and measures to make the city more welcoming for visitors.

Cardiff Council says it intends to work closely with tourism businesses on how the funds are used and plans to agree a memorandum of understanding with UKHospitality, the industry body representing the sector.

Councillor Russell Goodway, the council’s cabinet member for investment and development, said the consultation responses would help shape the next stage of the proposal.

“The responses to the consultation are very helpful, as they clearly set out what businesses and residents want us to focus on,” he said.

“If the proposal is approved, a Visitor Levy Partnership Forum will be established to advise on how the funds are used and help shape Cardiff’s tourism strategy.

Invest

He added that the charge would be lower than visitor levies seen in many European cities and would allow the council to invest further in tourism and services that benefit both visitors and residents.

Cardiff Council’s Cabinet will consider the proposal on 19 March, following scrutiny by the Economy and Culture Scrutiny Committee two days earlier. If approved, the plan will then be referred to full council for final approval.