'Tourism Tax' set to be introduced for overnight stays in Cardiff
A 12‑week public consultation has been completed, with 62% of respondents supporting the proposal to introduce a Visitor Levy for overnight stays in Cardiff
A 12‑week public consultation in the Welsh capital, which began on 1 December, has been completed, with 62% of respondents supporting the proposal to introduce a Visitor Levy for overnight stays in Cardiff.
The proposal follows the passing of new Welsh legislation, which received Royal Assent in September 2025, allowing councils across Wales to charge a small fee to overnight visitors from April 2027.
62% in favour, 33% opposed and 4% neutral:
More than 1,500 responses were received from the consultation, with the results showing broad support for the proposed levy, with 62% in favour, 33% opposed and 4% neutral.
Awareness of the proposal was also high, with 93% of respondents saying they were either very or quite aware of the proposed Visitor Levy.
Both positive and negative themes were raised. 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 money raised from the tax would raise an estimated at £3.5 million each year:
The money raised, estimated at £3.5 million each year, would be paid to the Welsh Revenue Authority, which would then pass the levy on to local authorities. The funding would be used to support Cardiff’s visitor economy, according to the council.
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 would be:
- £1.30 per person per night for most accommodation types
- 75p per person per night for campsites and shared rooms such as hostels
Some visitors would 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
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.
"If the proposal is approved by both Cabinet and Full Council, a Mandorum of Understanding will 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 would bring additionality to the services and promotions we can provide, improving the experience for visitors and residents alike.
“The proposed charge, set out in legislation, is significantly lower than the typical charge seen across Europe.”
Cardiff Council’s Cabinet will meet on March 19th to consider the recommendations.