Cardiff is set to introduce a new Visitor Levy after plans were approved by Full Council, following a public consultation that showed strong backing for the move.
The levy will see a small charge applied to overnight stays in the city from April 2027, made possible by new Welsh legislation that received Royal Assent in September 2025.
Almost 2,000 people responded to the consultation, with 62% supporting the introduction of the levy, 33% opposed and 5% neutral. Awareness of the proposal was also high, with 91% of respondents saying they were either very or quite aware of the plans.
Supporters of the scheme pointed out that similar charges are already common in cities across Europe and could help fund improvements to Cardiff’s tourism offer and manage the impact of major events. However, concerns were also raised around the potential impact on visitor numbers, the risk of funds being absorbed into wider budgets, and the added pressure on accommodation providers.
A key theme from the consultation was the need to ring-fence the income raised, ensuring it is clearly reinvested into improving Cardiff as a visitor destination. The most popular areas for investment included marketing and promotion, visitor infrastructure, and making the city more welcoming for tourists.
The levy is expected to raise around £3.5 million each year. The money will be collected by the Welsh Revenue Authority before being passed on to Cardiff Council. A new Visitor Levy Partnership Forum will be set up to help guide how the funds are spent.
The charge will apply to paid overnight stays of up to 31 nights in accommodation including hotels, guesthouses, hostels, Airbnb properties, campsites and temporary event accommodation.
Under the scheme, visitors will pay £1.30 per person per night for most accommodation types, while a reduced rate of 75p per person per night will apply to campsites and shared accommodation such as hostels. The levy will also be subject to VAT where applicable.
Some exemptions will apply, including for children under 18 staying in campsites or shared rooms, people staying longer than 31 nights, and those placed in emergency or temporary accommodation by the council.
Cardiff Council says it will now work closely with tourism businesses to ensure the levy supports growth in the sector, helps create jobs and benefits local businesses. As part of this, the council will enter into a Memorandum of Understanding with UKHospitality.
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.”
