Cardiff to introduce visitor levy from 2027

Daniel Bevan - Editor

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The Welsh capital is set to introduce a visitor levy on overnight stays after the proposal was approved by Cardiff Council.

The move follows new legislation, which received Royal Assent in September 2025, granting councils the power to charge a fee on overnight visitors from April 2027.

The decision comes after a public consultation that drew nearly 2,000 responses, with 62% backing the levy, 33% opposed and 5% neutral.

Respondents noted that similar schemes are common in cities across Europe and internationally, and that a modest charge could help support the development of the sector, as well as deal with the impact of major events.

However, respondents also raised concerns, including the potential impact on visitor numbers, the risk of revenue being absorbed by administrative or unrelated budgets, and the additional burden on accommodation providers.

A consistent theme among respondents was the need to ring-fence the revenue, ensuring transparency and accountability in how it is spent.

Key priorities identified included marketing and promotion, investment in visitor infrastructure, and initiatives to improve the overall visitor experience.

The levy will apply to paid overnight stays of up to 31 nights across a range of accommodation types, including hotels, guesthouses, hostels, short-term lets such as Airbnb, campsites and temporary event accommodation.

Visitors will be charged £1.30 per person per night for most accommodation, while a reduced rate of 75p will apply to campsites and shared accommodation such as hostels and will be subject to VAT where applicable.

Certain groups will be exempt, including people staying longer than 31 consecutive nights, individuals in emergency or temporary accommodation arranged by the council, and under-18s staying in campsites or shared rooms.

Revenue from the levy is estimated at around £3.5m annually and the funds will be collected by the Welsh Revenue Authority before being returned to local authorities.

Consultation responses highlighted both support and concern from residents and businesses.

Cllr Russell Goodway, Cabinet Member for Investment and Development at Cardiff Council, said: “The responses to the consultation on the proposed Visitor Levy are very helpful, as they clearly set out what businesses and residents want us to focus on.

“A Memorandum of Understanding will now be agreed and signed between Cardiff Council and UKHospitality and a Visitor Levy Partnership Forum will be set up to advise on how the funds are used and help shape Cardiff’s tourism strategy.

“This income will bring additionality to the services and promotions we can provide, improving the experience for visitors and residents alike.

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

Rebecca Godfrey, Chief Executive of the Welsh Revenue Authority, said: “The Welsh Revenue Authority will collect the Visitor Levy on behalf of Cardiff Council, and we’re committed to making that process as straightforward as possible.

“We’ve published a step-by-step guide on GOV.WALES to help visitor accommodation providers in Cardiff understand whether the levy applies to them, how to calculate what they owe, and how to file their return.

“We’ll publish more detailed guidance in April.

“Six months from now, providers with visitor accommodation in Cardiff will need to account for the Visitor Levy on new bookings and changes to existing bookings, for overnight stays from 1 April 2027.

“Now is the time to start preparing, and we’re here to help every step of the way.”