Cardiff Council and UKHospitality Cymru have signed a new agreement aimed at helping shape how the city’s forthcoming Visitor Levy will support the tourism and hospitality sectors.
The Memorandum of Understanding (MoU) was signed at Cardiff Castle and establishes a new partnership between the two organisations ahead of the levy being introduced in April 2027.
The agreement aims to help develop a levy that supports sustainable growth in Cardiff’s visitor economy, benefits residents and visitors, boosts accommodation occupancy and provides additional investment for tourism and hospitality.
It follows Cardiff Council’s decision to introduce a Visitor Levy on overnight stays in the Welsh capital following the passing of new Welsh legislation and approval from both the council’s Cabinet and Full Council.
The levy is expected to generate around £3.5 million each year.
Cllr Jennifer Burke, Cabinet Member Culture, Tourism and Events at Cardiff Council, 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.”
Through the MoU, UKHospitality Cymru has committed to working with Cardiff Council to help ensure the levy supports local businesses and the wider visitor sector.
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.”
How much will Cardiff’s Visitor Levy cost?
From April 2027, the levy will apply to paid overnight stays of 31 nights or less in hotels, guesthouses, hostels, short-term holiday lets, campsites and temporary event accommodation.
The charge, as set out in Welsh legislation, will be £1.30 per person, per night for most types of accommodation.
A lower charge of 75p per person, per night will apply to campsites and shared rooms such as hostels.
The Visitor Levy is also subject to VAT. Accommodation providers that are VAT-registered will be required to apply the standard 20% VAT rate to any amount collected for the levy.
Some visitors will be exempt, including children under 18 staying in campsites or shared rooms, people staying for more than 31 nights under a single booking, and those in emergency or temporary accommodation arranged by the council.
Accommodation providers will need to begin accounting for the levy from September 28, 2026, on new bookings for stays from April 1, 2027. The requirement will also apply to additional nights or guests added to existing bookings for stays from that date.
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.
“We’ve published a step-by-step guide on GOV.WALES and providers can sign up for an in-person event or webinar in September.”
