Cardiff Council Signs Key MoU on Visitor Levy at Cardiff 2026

Key Points

• Cardiff Council and hospitality trade body UKHospitality Cymru have signed a Memorandum of Understanding (MoU) on the city’s upcoming visitor levy.
• The agreement was signed at Cardiff Castle and establishes a Joint Working Group with the Cardiff Hoteliers’ Association to help shape the policy.
• The levy is due to come into force on 1 April 2027 and is expected to raise around £3.5 million a year for Cardiff’s visitor economy.
• Standard accommodation will be charged £1.30 per person, per night, while campsites and shared hostel rooms will pay 75p per person, per night, with standard VAT applying where relevant.
• Accommodation providers must start accounting for the levy on eligible bookings from 28 September 2026.

Cardiff (Cardiff Daily) August 27, 2026 — Cardiff Council and UKHospitality Cymru signed a Memorandum of Understanding (MoU) at Cardiff Castle on August 26, 2026, establishing a collaborative framework for the implementation of the city’s visitor levy. Following the passage of Welsh Government legislation granting local authorities the power to introduce a visitor charge, Cardiff will become the first local council in Wales to enact the measure, which takes effect from 1 April 2027. Under the terms of the MoU, Cardiff Council, UKHospitality Cymru, and the Cardiff Hoteliers’ Association will establish a Joint Working Group to manage the governance, collection principles, and strategic allocation of generated revenue. The levy is projected to raise roughly £3.5 million per year, which will be ring-fenced to strengthen the capital’s tourism infrastructure, support major events, and enhance the overall visitor experience.

What are the key terms and rates of the new Cardiff visitor levy?

As reported by Mark Mansfield of Nation.Cymru, the visitor levy will apply across all short-term paid overnight accommodations within the Cardiff Council footprint for stays of up to 31 consecutive nights. This includes traditional hotels, bed and breakfasts, self-catering holiday lets, Airbnb rentals, guest houses, hostels, campsites, and temporary event accommodations.

Under the statutory framework, most visitors will pay a standard levy of £1.30 per person, per night. A reduced rate of 75p per person, per night will apply to guests staying on campsite pitches or in shared hostel dormitories. Because the visitor levy falls within standard UK tax guidelines, accommodation providers registered for Value Added Tax (VAT) must apply the 20 per cent standard VAT rate to the levy amount collected.

Specific statutory exemptions have been established by Cardiff Council:

• Children under the age of 18 staying on camping pitches or in shared hostel accommodations.
• Individuals staying in emergency or temporary housing arranged directly by local authorities.
• Continuous stays exceeding 31 consecutive nights under a single reservation.

How will hospitality leaders and local authorities collaborate on spending?

The signing of the MoU formalises industry participation in determining how the £3.5 million annual funds will be deployed. Cardiff Council’s Cabinet Member for Culture, Tourism, and Events, Councillor Jennifer Burke, emphasized the potential advantages of the agreement for both residents and visitors. As reported by Mark Mansfield of Nation.Cymru, Councillor Jennifer Burke stated that “this income will bring additionality to the services and promotions we can provide, improving the experience for visitors and residents alike”. Councillor Burke added that the agreement ensures “the creation of a Joint Working Group involving Cardiff Council, UKHospitality Cymru and the Cardiff Hoteliers’ Association to share expertise and help develop a scheme that is transparent, fair and beneficial to Cardiff’s visitor economy,” noting that the proposed rate remains “significantly lower than the typical charge seen across Europe”.

Representing the regional hospitality sector, Executive Director of UKHospitality Cymru David Chapman noted the necessity of direct industry involvement in managing the collected funds. As reported by Mark Mansfield of Nation.Cymru, David Chapman stated that “as the Council moves ahead with its decision to introduce a Visitor Levy, it’s imperative that it is designed in a way that uses all funds to benefit hospitality and tourism in Cardiff”. Chapman highlighted that council leaders “have listened to our concerns, and I look forward to helping set out how the levy will be used to fund, promote and enhance our visitor economy and experience”.

What are the collection requirements for accommodation providers?

The administration and collection of the visitor levy will be handled by the Welsh Revenue Authority (WRA), which will subsequently disburse the collected revenues back to Cardiff Council. Although overnight charges do not apply to stays until 1 April 2027, accommodation businesses face earlier administrative deadlines.

As reported by Mark Mansfield of Nation.Cymru, Services Director at the Welsh Revenue Authority Joe Dooher stated that “we’re working closely with Cardiff Council to support accommodation providers as they prepare for the Visitor Levy”. Joe Dooher explained that “from 28 September 2026, providers need to account for the levy on new bookings, and on any extra nights or guests added to existing bookings, for stays from 1 April 2027,” urging businesses across Cardiff “to review their processes and record keeping ahead of this date”.

Background of the Cardiff visitor levy policy

The decision to establish a visitor levy in Cardiff follows legislative powers introduced by the Welsh Government allowing local authorities to enact targeted tourist charges. Cardiff Council subsequently launched a comprehensive public consultation process to evaluate community and industry sentiment regarding the proposed tax.

The consultation generated nearly 2,000 official responses from local residents, hoteliers, business owners, and regional stakeholders. Public awareness of the initiative was high, with more than 90 per cent of respondents confirming prior knowledge of the proposal. Results revealed that 62 per cent of participants supported the introduction of the levy, 33 per cent expressed opposition, and 5 per cent remained neutral.

Supporters during the consultation phase cited comparable European models—where small, per-night municipal tourist taxes are routinely collected—arguing that the mechanism generates necessary revenue to maintain civic infrastructure strained by large-scale sport and cultural events. Opponents expressed concerns regarding potential administrative burdens for small accommodation providers and raised questions over price sensitivity for tourists. In response to industry feedback requesting strict safeguards, Cardiff Council committed to ring-fencing revenue exclusively for tourism and event infrastructure, culminating in the formal MoU signed at Cardiff Castle.

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Impact analysis and predictions for key stakeholders

The formal execution of the Memorandum of Understanding and the planned rollout of the visitor levy will directly influence several distinct groups across the region:

• Hotels and Accommodation Providers: Businesses operating within the local authority boundary will face short-term administrative adjustments ahead of the 28 September 2026 booking transition date. Software systems, booking engines, and accounting procedures must be updated to account for the levy and appropriate VAT calculations. However, direct representation on the Joint Working Group provides hoteliers with institutional oversight regarding how the funds are deployed.
• Tourists and Overnight Visitors: Visitors to Cardiff after 1 April 2027 will see small, itemised surcharges added to booking invoices. For standard hotel stays, a couple staying two nights will incur an additional charge of £3.12 inclusive of VAT (calculated as two guests across two nights at £1.30 plus 20% VAT per night). Given the modest price adjustment compared to major European destinations, demand for overnight tourism is expected to remain steady, while overall destination quality benefits from targeted reinvestment.
• Local Residents and Community Infrastructure: The resident population of Cardiff is likely to experience positive secondary impacts. By creating an annual £3.5 million ring-fenced fund, the council can maintain public services and manage civic logistics surrounding major concerts, matches, and cultural festivals without drawing exclusively from standard municipal council tax budgets.