Cardiff will become the first place in Wales to introduce a Visitor Levy, charging tourists an extra fee for overnight stays from the end of summer 2026. Businesses hosting overnight guests must start applying the levy to new bookings made from September 28, 2026, for stays beginning April 2027. The levy is expected to generate an estimated £3.5 million each year.
Levy Rates and Exemptions
The levy applies to all overnight accommodation, including hotels, B&Bs, self-catering lets, hostels, caravan parks, camping and glamping sites. It also applies to people renting their home or a spare room to guests. Two rates will be charged: 75p per person per night for shared rooms in hostels, bunkhouses, bothies, dormitories, and tent pitches (including temporary ones for events and festivals). Children under 18 are exempt from this rate. The higher rate of £1.30 per person per night applies to all other accommodation, such as hotels, B&Bs, guesthouses, self-catering lets like cottages and Airbnb, caravan and motorhome pitches, and temporary accommodation like glamping pods. This rate applies to visitors of all ages.
The visitor levy is subject to VAT; thus, VAT-registered accommodation providers must apply the standard UK VAT rate of 20% to the amount collected for the levy.
Implementation and Background
The Welsh Government has instructed Cardiff accommodations to prepare for the change from September 28, 2026. On that date, businesses must start accounting for the levy on new bookings for stays from April 2027, as well as extra nights or guests added to existing bookings. The new Visitor Levy in Cardiff was approved in March 2026 following a public consultation that generated positive feedback from 62% of people.
Impact and Use of Funds
Money generated from the scheme is intended to be reinvested into Welsh tourism. The levy is expected to raise approximately £3.5 million annually, which will be used to support and develop the local tourism industry.
