Hospitality industry to help shape visitor levy

Mark Mansfield

Cardiff Council has signed an agreement with a hospitality industry body over how the city’s visitor levy will be developed and its proceeds spent.

The levy, which is due to come into force in April 2027, is expected to raise around £3.5 million a year from people staying overnight in the Welsh capital.

Cardiff Council and UKHospitality Cymru have now signed a Memorandum of Understanding which will see them work together as preparations for the charge continue.

A joint working group involving the council, UKHospitality Cymru and the Cardiff Hoteliers’ Association will also be established to help determine how the scheme operates and how money raised is used to support the city’s visitor economy.

The agreement follows decisions by both the council’s cabinet and full council to introduce the levy after legislation giving Welsh local authorities the power to impose the charge was passed.

From April 2027, most visitors staying in paid accommodation in Cardiff for 31 nights or fewer will be charged £1.30 per person per night.

A lower rate of 75p will apply to campsites and shared accommodation such as hostels.

Hotels, guesthouses, short-term holiday lets and temporary event accommodation will also be covered by the scheme.

The levy is subject to VAT, meaning VAT-registered accommodation providers will have to apply the standard 20% rate to the amount collected.

Some visitors will be exempt, including under-18s staying at campsites or in shared rooms, people staying for more than 31 nights under a single booking and those placed in emergency or temporary accommodation by the council.

Cllr Jennifer Burke, Cardiff Council’s cabinet member for culture, tourism and events, said: “This income will bring additionality to the services and promotions we can provide, improving the experience for visitors and residents alike.

“The agreement will also see the creation of a Joint Working Group involving Cardiff Council, UKHospitality Cymru and the Cardiff Hoteliers’ Association to share expertise and help develop a scheme that is transparent, fair and beneficial to Cardiff’s visitor economy.

“The charge, as set out in legislation, is significantly lower than the typical charge seen across Europe.”

Working group

UKHospitality Cymru represents businesses across Wales’s hospitality sector and will sit on the new joint working group alongside the council and Cardiff Hoteliers’ Association.

David Chapman, executive director of UKHospitality Cymru, said: “As the Council moves ahead with its decision to introduce a Visitor Levy, it’s imperative that it is designed in a way that uses all funds to benefit hospitality and tourism in Cardiff.

“I’m really pleased that the Council has shown a progressive and inclusive approach to working with UKHospitality Cymru and our local members and committed to working closely with us.

“They have listened to our concerns, and I look forward to helping set out how the levy will be used to fund, promote and enhance our visitor economy and experience.”

The Welsh Revenue Authority is responsible for administering the levy and has published guidance for accommodation providers ahead of its introduction.

Joe Dooher, services director at the Welsh Revenue Authority, said: “We’re working closely with Cardiff Council to support accommodation providers as they prepare for the Visitor Levy.

“From 28 September 2026, providers need to account for the levy on new bookings, and on any extra nights or guests added to existing bookings, for stays from 1 April 2027.

“We’d encourage providers to review their processes and record keeping ahead of this date.”

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