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Tourists and other visitors staying overnight in Cardiff will face a new nightly charge from April 2027 after councillors gave the green light to a visitor levy.
The scheme – one of the first of its kind in Wales – will see most guests pay £1.30 per person per night, with a reduced rate of 75p for those using campsites or shared accommodation such as hostels. VAT will apply where relevant.
What’s covered
The levy will apply to a wide range of accommodation types, taking in hotels, guesthouses, hostels, short-term rental properties including Airbnbs, campsites and temporary event accommodation. It covers stays of up to 31 consecutive nights.
Certain groups will be exempt. Anyone staying beyond 31 nights will not be charged, nor will under-18s in campsites or shared rooms, or people placed in emergency accommodation by the council.
How much could it raise?
Council officials believe the levy could generate approximately £3.5 million annually, with all funds directed towards supporting the capital’s visitor economy. The Welsh Revenue Authority will be responsible for collecting the charge before passing it on to the council, and a new partnership forum is set to be created to help shape how the money is spent.
Public consultation
The plans were put to a public consultation that drew close to 2,000 responses. Of those, 62% backed the levy, 33% were against it and 5% were neutral. More than nine in 10 respondents said they were already aware of the proposals.
Those in favour highlighted similar charging models used in cities across Europe and argued the income could strengthen infrastructure and help manage the effects of large-scale events. On the other hand, critics raised concerns about the potential impact on visitor numbers, the extra administrative demands on accommodation providers and a lack of clarity over how funds would be allocated. A common theme among responses was a call for the revenue to be ring-fenced, with transparent accountability over its use.
What happens next
Cardiff Council has committed to working alongside businesses and industry representatives, including UKHospitality, to develop detailed spending plans.
Cllr Russell Goodway, cabinet member for investment and development, said: “The responses clearly set out what businesses and residents want us to focus on.”
Rebecca Godfrey, chief executive of the Welsh Revenue Authority, said guidance has been issued to help accommodation providers get ready. She urged businesses to begin preparing now, noting they will need to account for the levy on any bookings made for stays from April 2027.
The decision makes Cardiff among the first local authorities in Wales to formally adopt a visitor levy under legislation passed in 2025, with other councils expected to explore similar plans.
