Cardiff is set to become the first local authority in Wales to introduce a tourism tax or visitor levy on paid overnight stays. If approved, the controversial but potentially transformative new fee could raise an estimated £3.5 million annually, with the revenue earmarked specifically to enhance the city’s visitor experience.
This move follows new legislation passed by the Welsh government in September, which allows councils to charge a small fee to overnight visitors starting from April 2027.
The proposal requires final approval from the council’s cabinet. If granted, a 12-week public consultation will begin on December 1st, giving residents and businesses a chance to voice their opinions on the plans.
The fee structure is tiered:
- A charge of £1.30 per person, per night will apply to most types of accommodation, including hotels, guesthouses, and Airbnbs.
- A reduced fee of 75p per night is proposed for campsites and shared rooms.
The charge would apply to paid overnight stays of 31 nights or fewer. Exemptions are in place for certain groups, including children under 18 in shared rooms, those staying longer than 31 nights in a single booking, and people in council-arranged emergency housing.
The Welsh Revenue Authority will collect the funds generated and then return them directly to Cardiff Council for reinvestment into the tourism sector.
Councillor Russell Goodway, Cabinet Member for Investment and Development, confirmed the levy would be a direct funding source to improve the visitor experience across the city.
“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,” he said. “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.”
Councillor Goodway also noted that the proposed charge is low compared to similar visitor levies typically seen acrossEurope.
The prospect of a new tax has prompted a mixed reaction from the business community, reflecting both the need for investment and the ongoing economic pressures facing the sector.
Joshua Miles, Chief of the Federation of Small Businesses (FSB) Wales, cautioned against the introduction, arguing:”FSB has been and remains of the view that this is not the time to introduce a new tax on tourism in Wales and that there is a risk of damage done to local economies by its implementation.” He urged the council to find alternatives that “do not burden small business and… customers.”
In contrast, others see the levy as a vital opportunity. Carolyn Brownell, Executive Director of business group For Cardiff, stated that the move “presents a valuable opportunity to strengthen the city’s visitor economy, provided it is implementedin a way that ensures the fund provides additionality and is invested to support Cardiff’s tourism sector.”
Photography by The Times
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