Cardiff will introduce a Visitor Levy for overnight stays in the city from April 2027.
The levy has now been approved by Cardiff Council and means that six months from now accommodation providers 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.
The decision follows the passing of new Welsh legislation, which received Royal Assent in September 2025, allowing councils across Wales to charge a fee to overnight visitors from April 2027.
Cardiff Council received almost 2,000 responses to a consultation on the proposals, with the results showing 62% in favour, 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 proposed Visitor Levy.
Both positive and negative themes were raised, the council said. On the positive side, 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.
Across all the responses, there was a strong call to ring‑fence the income raised, with clear accountability, so the revenue from the levy is visibly reinvested to improve Cardiff as a tourist destination, as well as address any impacts of increased visitor numbers. The areas attracting the strongest support for investment include the promotion and marketing of the city, visitor infrastructure, and making the city welcoming for visitors.
Following approval by both Cardiff Council's Cabinet and Full Council, the money raised from the levy, estimated at £3.5 million each year, will be paid to the Welsh Revenue Authority, which would then pass the levy on to local authorities. The funding will be used to support Cardiff’s visitor economy, with a new Visitor Levy Partnership Forum established to advise on how the funds would be used.
The levy applies to paid overnight stays of 31 nights or less in hotels, hostels, guesthouses, Airbnbs, campsites and temporary event accommodation.
The fee, as set out in legislation, will be:
- £1.30 per person per night for most accommodation types
- 75p per person per night for campsites and shared rooms such as hostels
The visitor levy is subject to Value Added Tax (VAT). If an accommodation provider is VAT-registered, they must apply standard rate VAT (20% in the UK) to the amount collected for the levy.
Some visitors will be exempt, including:
- Children under 18 staying in campsites or shared rooms
- People staying more than 31 nights in a single booking
- Those in emergency or temporary accommodation arranged by the Council
The council said it would now work closely with tourism businesses to shape how the levy is used to grow the visitor economy, create jobs and support local businesses. As part of this the council will also enter into a Memorandum of Understanding with UKHospitality, which will help ensure that the funds are used to growth the sector in the city.
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.”
