Cardiff Council and UKHospitality Cymru, Wales' leading trade body for the hospitality industry, have signed a memorandum of understanding (MoU) on Cardiff's visitor levy at Cardiff Castle. The agreement marks a new partnership to help shape the development of the levy to support the city's visitor economy, boost accommodation occupancy, and deliver investment to the city's tourism and hospitality industry.
Levy details and timeline
The council approved the levy in March of this year, following the passing of new Welsh legislation. It is set to come into action in April 2027. The levy will charge £1.30 per person per night for most accommodation types and 75p per person per night for camp sites and shared rooms such as hostels.
It is expected to generate £3.5m per year and will apply to paid overnight stays of 31 nights or less. Under-18s and those in emergency or temporary accommodation arranged by the council will be exempt.
Industry and council responses
David Chapman, executive director of UKHospitality Cymru, said: "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." He added he was "really pleased" with the council's approach to UKHospitality Cymru and how they listened to the industry body's concerns.
Joe Dooher, services director at the Welsh Revenue Authority, said: "We're working closely with Cardiff council to support accommodation providers as they prepare for the visitor levy. From September 28, 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 April 1, 2027. We'd encourage providers to review their processes and record keeping ahead of this date."
Next steps
Cllr Jennifer Burke, the council's cabinet member of culture, tourism and events, said the additional income brought in by the levy will help improve the city experience for residents and visitors alike. She also said the levy sets out a much lower charge than the typical rate seen across many other European cities.
The agreement will also see the creation of a joint working group involving the council, UKHospitality Cymru and the Cardiff Hotelier's Association to develop the scheme.
