Cardiff Council is seeking Cabinet approval to begin a 12-week public consultation on plans to introduce a Visitor Levy for overnight stays in the city.
The report to Cabinet follows the passing of new Welsh legislation in September 2025 that received Royal Assent which allows councils across Wales to charge a small fee to overnight visitors, starting from April 2027.
The money raised, estimated at £3.5 million each year, would be paid to the Welsh Revenue Authority, who in turn pay the levy to local authorities.
The council said that money raised would be used to support Cardiff’s visitor economy through destination management and improvement, which would include improving infrastructure, promoting events, supporting tourism businesses, and enhancing the city’s appeal to visitors.
The proposed levy would apply to paid overnight stays of 31 nights or less in hotels, hostels, guesthouses, Airbnbs, campsites, and temporary event accommodation.
The fee, outlined in the legislation, would be:
- £1.30 per person per night for most accommodation types
- 75p per person per night for campsites and shared rooms like hostels
Some visitors would be exempt, including:
- Children under 18 staying in campsites or shared rooms
- People staying more than 31 nights in one booking
- Those in emergency or temporary housing arranged by the council.
The proposal for the Levy outlines that the council would work with tourism businesses to shape how it can be best used to grow the visitor economy in the city, creating jobs and supporting local businesses.
Cllr Russell Goodway, Cabinet Member for Investment and Development at Cardiff Council, said:
“The proposed Visitor Levy in Cardiff would be used to improve the visitor experience for everyone coming to Cardiff, by funding marketing campaigns, or by supporting a broader range of events in the city. Not only do we want people to enjoy their experience coming to Cardiff, but we also want people to stay longer, so we need to increase our offer though investment.
“The proposed charge, set out in legislation, is significantly lower than the typical charge across Europe.
“This initiative is clearly set out in the council’s Corporate Plan and has been scrutinised in detail by the Economy & Culture Scrutiny Committee, and their findings have been built into our proposals going forwards.
“If the proposed Visitor Levy is agreed by Cabinet and Full Council, a Visitor Levy Partnership Forum will be set up to advise on how the funds are used and will help shape Cardiff’s Tourism Strategy. Final decisions on the spending of the money raised will remain with elected officials.”
The 12-week consultation will begin on 1st December 2025, inviting feedback from residents, businesses, and visitors. Activities will include an online survey, workshops, and direct engagement with stakeholders.
The results of the consultation will inform a final proposal, which will be presented to Cabinet and Full Council in March 2026 for approval. If approved, the levy could be introduced in Cardiff from April 2027.
