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Cardiff could become the first location in Wales to introduce a tourism tax on paid overnight stays, following new legislation that allows councils to charge visiting guests a small levy from April 2027. If approved, the tax would apply to stays of 31 nights or fewer across a wide range of accommodation types, including hotels, Airbnbs, hostels, guesthouses, campsites, and temporary event accommodation.
The proposal is pending approval from Cardiff Council’s cabinet. If granted, a 12-week public consultation is scheduled to begin on 1 December.
How Much Would Visitors Pay?
The proposed levy would vary depending on the type of accommodation:
- £1.30 per person, per night for most paid accommodation
- 75p per night for campsites and shared rooms
The charge is estimated to raise around £3.5 million per year.
Funds collected would be handled by the Welsh Revenue Authority, which would then distribute the revenue to local authorities.
Who Would Be Exempt?
Some visitors would not be required to pay the levy, including:
- Children under 18 staying in campsites or shared rooms
- Guests staying more than 31 consecutive nights in a single booking
- People placed in temporary or emergency accommodation arranged by the council
Why Introduce a Tourist Tax?
The aim of the levy is to reinvest money into the visitor economy and improve the experience of people travelling to Cardiff. Councillor Russell Goodway, cabinet member for investment and development, said the revenue could be used to:
- Improve visitor services
- Fund marketing campaigns
- Support a broader range of events in the city
He added that increasing the city’s tourism offering could encourage visitors to stay longer and help support growth. The proposed charges, he noted, are lower than typical levies in many European destinations.
Mixed Reaction from Local Businesses
The proposal has received a varied response from business leaders and tourism organisations.
Some believe the levy could strengthen Cardiff’s tourism industry if implemented responsibly. Carolyn Brownell, Executive Director of business group For Cardiff, said that the levy could be a “valuable opportunity” provided it is used to support and enhance the visitor economy.
Nick Saunders, founder of events company Depot Live, also expressed support, noting that the council needs revenue to fund services. He argued that the small charge is unlikely to deter visitors, though he acknowledged some may complain due to the wider cost of living pressures.
However, other voices are more cautious. Joshua Miles, Federation of Small Businesses Wales Chief, warned that this may not be the right time to introduce new costs to the tourism sector, which he said is still recovering from difficult economic conditions, low consumer spending and high operating costs. He suggested the council should look for alternatives that do not add financial pressure on businesses or customers.
What Happens Next?
The proposed levy remains subject to cabinet approval and public consultation. If introduced, Cardiff would become the first city in Wales to implement a tourism tax, potentially shaping how similar policies are adopted across the country.
For now, the discussion continues, and businesses, residents, and travellers alike will be watching closely.
