Cardiff Visitor Levy for Overnight Stays Starts 2027 2026

Key Points

• Cardiff Council has approved a Visitor Levy for overnight stays starting from 1 April 2027, following new Welsh legislation that received Royal Assent in September 2025.
• The levy applies to paid overnight stays of 31 nights or less in hotels, hostels, guesthouses, Airbnbs, campsites, and temporary event accommodation.
• Fees are set at £1.30 per person per night for most accommodation types and 75p per person per night for campsites and shared rooms such as hostels; the levy is subject to 20% VAT if the provider is VAT-registered.
• Exemptions include children under 18 in campsites or shared rooms, stays over 31 nights in a single booking, and those in emergency or temporary accommodation arranged by the Council.
• A consultation received nearly 2,000 responses: 62% in favour, 33% opposed, 5% neutral, with 91% awareness; supporters highlighted European precedents and sector benefits, while opponents cited risks to visitor numbers and administrative burdens.
• Estimated annual revenue: £3.5 million, collected by the Welsh Revenue Authority (WRA) and passed to local authorities; funds will support the visitor economy via a new Visitor Levy Partnership Forum.
• Cardiff Council will collaborate with tourism businesses, including a Memorandum of Understanding (MoU) with UKHospitality, to reinvest funds in promotion, infrastructure, and making the city welcoming.
• Cllr Russell Goodway emphasised the levy adds value at a lower rate than European norms and will improve experiences for visitors and residents.
• Rebecca Godfrey of WRA confirmed straightforward collection processes with guidance on GOV.WALES.

Cardiff (Cardiff Daily) March 30, 2026 – Cardiff Council has formally approved the introduction of a Visitor Levy on overnight stays from April 2027, marking a significant step to bolster the city’s tourism sector amid new Welsh powers. Accommodation providers must prepare to add the charge to new bookings and amendments for stays starting 1 April 2027, as reported in the initial coverage by the Business News Wales team under the Tourism & Hospitality section. The decision, backed by robust public consultation, aims to generate £3.5 million annually for enhancing Cardiff’s visitor economy, with funds ring-fenced through collaborative oversight.

What Triggered the Approval of Cardiff’s Visitor Levy?

The approval stems directly from Welsh legislation passed last year, which empowers all councils across Wales to impose such fees from April 2027. As detailed in the Business News Wales article published on 30 March 2026, the legislation received Royal Assent in September 2025, paving the way for local implementation. Cardiff Council moved swiftly after its Cabinet and Full Council endorsed the scheme, responding to widespread calls for targeted reinvestment.

Public input played a pivotal role. The council’s consultation garnered almost 2,000 responses, revealing 62% support, 33% opposition, and 5% neutrality. Awareness stood at an impressive 91%, with respondents either “very” or “quite” informed. Positive feedback drew parallels to established schemes in European and international cities, viewing the modest fee as a means to foster sector growth and mitigate impacts from major events.

Concerns were equally vocal. Respondents flagged potential drops in visitor numbers, fears of funds being diverted to administrative or unrelated budgets, and extra strains on providers. A unifying demand emerged: ring-fencing revenue with transparent accountability to visibly enhance Cardiff as a tourist hub, tackling visitor pressures head-on.

How Will the Visitor Levy Be Charged in Cardiff?

The levy targets paid overnight stays of 31 nights or less across diverse accommodations: hotels, hostels, guesthouses, Airbnbs, campsites, and temporary event sites. Rates, fixed by legislation, stand at £1.30 per person per night for standard types and 75p for campsites or shared hostel rooms. Providers who are VAT-registered must apply the UK’s standard 20% VAT to collections.

Exemptions ensure fairness. Children under 18 in campsites or shared rooms qualify for relief, as do long-term stays exceeding 31 nights in one booking. Council-arranged emergency or temporary housing remains untouched. These details, outlined in the Business News Wales report, underscore the scheme’s balanced approach.

From six months hence, providers must integrate the levy into new bookings and changes to existing ones for stays post-1 April 2027. The Welsh Revenue Authority (WRA) will handle collections, forwarding proceeds to Cardiff Council.

Who Collects the Funds and What Happens to the Revenue?

Revenue collection falls to the WRA, which will disburse an estimated £3.5 million yearly to local authorities. As per the Business News Wales coverage, a dedicated Visitor Levy Partnership Forum will guide spending, prioritising city promotion, marketing, visitor infrastructure, and welcoming enhancements—priorities that polled strongest in consultations.

Cllr Russell Goodway, Cabinet Member for Investment and Development at Cardiff Council, stated:

“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. A Memorandum of Understanding will now 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 will bring additionality to the services and promotions we can provide, improving the experience for visitors and residents alike. The charge, set out in legislation, is significantly lower than the typical charge seen across Europe.”

To foster collaboration, the council plans an MoU with UKHospitality, ensuring funds drive growth, jobs, and business support. Council officials stressed close work with tourism firms to refine usage.

What Guidance Exists for Accommodation Providers?

Rebecca Godfrey, Chief Executive of the Welsh Revenue Authority, affirmed readiness:

“The Welsh Revenue Authority will collect the Visitor Levy on behalf of Cardiff Council, and we’re committed to making that process as straightforward as possible. We’ve published a step-by-step guide on GOV.WALES to help visitor accommodation providers in Cardiff understand whether the levy applies to them, how to calculate what they owe, and how to file their return. We’ll publish more detailed guidance in April. Six months from now, providers with visitor accommodation in Cardiff will need to account for the Visitor Levy on new bookings and changes to existing bookings, for overnight stays from 1 April 2027. Now is the time to start preparing, and we’re here to help every step of the way.”

This guidance, highlighted in the original Business News Wales piece, equips providers for compliance. The WRA’s proactive stance aims to minimise disruptions.

Why Did Consultation Responses Vary So Widely?

The consultation illuminated a spectrum of views. Supporters, forming 62%, appreciated global precedents—cities like Edinburgh, Manchester, and European peers already thrive with similar levies. They saw value in funding sector development and event management.

Opponents, at 33%, worried about deterrence to tourists, revenue mismanagement, and provider overloads. The council acknowledged these “positive and negative themes,” committing to address them via ring-fencing and forums. Neutral voices, 5%, reflected nuanced positions.

High awareness (91%) signals effective communication, positioning Cardiff to navigate implementation smoothly.

How Does Cardiff’s Levy Compare to Other UK and European Cities?

Cllr Goodway noted the fee’s modesty against European norms, where charges often exceed £1.30-£2 nightly. While the article from Business News Wales does not detail rivals exhaustively, it references “cities across Europe and internationally,” aligning Cardiff with progressive models. In Wales, this pioneers local adoption post-legislation, potentially inspiring peers like Swansea or Newport.

The lower rate, per Goodway, balances revenue (£3.5m projected) with accessibility, enhancing rather than hindering appeal.

What Steps Follow Approval for Businesses and Residents?

Post-approval, Cardiff Council will engage tourism stakeholders intimately. The Visitor Levy Partnership Forum emerges as a key body, advising on tourism strategy. The UKHospitality MoU formalises joint efforts for growth.

Businesses face preparation timelines: levy accounting from October 2026 for 2027 stays. Residents benefit indirectly via improved infrastructure and events, with funds visibly reinvested per consultation mandates.

This scheme positions Cardiff to sustain its vibrant visitor economy, which draws millions annually to landmarks like the castle, bay, and Principality Stadium. By heeding feedback, the council mitigates risks, fostering a model for Welsh tourism.

What Challenges Might Arise During Implementation?

Potential hurdles mirror consultation fears: visitor dips, admin costs, and equity. Yet, WRA’s guidance and forums aim to preempt them. Godfrey’s assurances and Goodway’s vision signal robust planning.

As Cardiff leads Wales, monitoring will be crucial. Success hinges on transparency—ensuring every pound enhances the city for all.