Cardiff Council is proposing to introduce a visitor levy which would see people having to pay £1.30 for overnight stays
A new visitor tax is set to be introduced to Cardiff (Image: Matthew Horwood)
Cardiff is set to become the first place in Wales to implement a tourism tax for overnight visitors. The proposed levy would apply to anyone staying in the city for 31 nights or fewer, including in hotels, guesthouses, hostels, Airbnbs, campsites, and temporary event accommodation.
Under the plans, most overnight stays would include a charge of £1.30 per person, per night. However, a reduced rate of 75p per person would apply to shared rooms, such as hostels and campsites.
Some visitors would be exempt from the charge. Never miss a Cardiff story by signing up to our daily newsletter here
Those who would be exempt include:
- Children under 18 staying in campsites or shared rooms
- People staying for more than 31 consecutive nights in a single booking
- Those in emergency or temporary accommodation arranged by the council.
Cardiff Council is seeking approval to launch a 12-week public consultation on the introduction of the visitor levy, which is expected to begin on December 1. A final proposal is due to be presented to the Cabinet and full council in March 2026, and if approved, the scheme will be introduced by April 2027
The move follows new Welsh Government legislation, passed in September 2025 and granted Royal Assent, which gives councils across Wales the power to charge a small levy on overnight stays from 2027.
According to the council, the tax could generate around £3.5 million a year. The funds would be collected by the Welsh Revenue Authority and given to local authorities, with the money reinvested in Cardiff’s visitor economy.
The revenue would be used to improve infrastructure, promote major events, and support tourism-related businesses across the city. The council has said it intends to work closely with local tourism operators to ensure the levy is used effectively to boost Cardiff’s growing visitor economy, create jobs, and support local businesses.
Cardiff Council cabinet member for investment and development, Cllr Russell Goodway, 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 through 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 forward.
“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.”
Get daily breaking news updates on your phone by joining our WhatsApp community here. We occasionally treat members to special offers, promotions and ads from us and our partners. See our Privacy Notice