Visitors to be hit by new tourist tax in UK city as change approved | UK | News
Tax will start in April 2027 (Image: Getty)
A new visitor tax on overnight stays will be introduced in a major UK city after the city council approved the plan. The decision followed a public consultation in which 62 per cent of those surveyed expressed support. The tax will come into force in Cardiff from April 2027. This follows new Welsh legislation which received Royal Assent in September 2025, allowing councils across Wales to charge a small fee to overnight visitors.
Approximately 2,000 responses were received from the public consultation meeting. Of these, 62 percent supported the proposal, 33 percent opposed it, and 5 percent remained neutral. Supporters of the visitor tax emphasized that similar tourist taxes already exist in other European cities and beyond, arguing that the revenue could fund improvements to tourism infrastructure and help manage the impacts of large-scale events.
But not everyone supported the plan due to growing concerns about the potential impact the tax could have on the city – including the impact on visitor numbers, additional pressure on accommodation providers and how the money would be spent.
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Visitors staying in most types of accommodation in Cardiff will pay £1.30 per person per night (Image: Getty)
Joshua Miles, chairman of the Federation of Small Businesses Wales, previously said of the tax: “The FSB has been and continues to be of the view that this is not the time to introduce a new tax on tourism in Wales and that there is a risk of harm to local economies by its implementation.
“The small business sector has long faced challenging economic conditions. They still need support to recover, with low consumer spending and disproportionately high costs still impacting the viability of some tourism businesses.”
Under the approved plan, the tax would apply to overnight stays of up to 31 nights at hotels, hostels, guesthouses, Airbnb rentals, campsites and temporary event accommodation. Prices are £1.30 per person per night for most types of accommodation and 75p per person per night for shared rooms such as campsites and hostels.
Tax will be subject to VAT where applicable. Exemptions include children under the age of 18 staying in hostels or campsites, stays longer than 31 nights, and people staying in emergency situations or people with temporary accommodation arranged by the council.
The council estimates the tax could raise around £3.5 million per tear. The funds will be collected by Revenue Wales and passed on to Cardiff Council.
A new Visitor Acquisition Partnership Forum will be created to make recommendations on how the money is spent, stimulate tourism, promote the city and improve visitor infrastructure.
Cardiff Council has pledged to work closely with tourism businesses before the scheme comes into force in April 2027, and a formal agreement will also be made with UKHospitality to ensure the funds support the local tourism sector and increase the city’s attractiveness for visitors.
Councilor Russell Goodway, Cardiff Council’s Cabinet Member for Investment and Development, said: “Responses to the consultation on the proposed Visitor Tax are very useful as they make clear what businesses and residents want us to focus on.
“A Memorandum of Understanding will be agreed and signed between Cardiff Council and UKHospitality and a Visitor Levy Partnership Forum will be established to advise on how funds are used and help shape Cardiff’s tourism strategy. “This revenue will add to the services and promotions we can provide and improve the experience for both visitors and residents.
“The wage specified by law is significantly lower than the typical wage seen across Europe.”
Rebecca Godfrey, Chief Executive of Revenue Wales, said: “Wales Revenue will collect Visitor Tax on behalf of Cardiff Council and we are committed to making this process as simple as possible.
“We have published a step-by-step guide on GOV.WALES to help visitor accommodation providers in Cardiff understand whether tax applies to them, how to calculate what they owe and how to file their returns. We will be publishing a more detailed guide in April.
“Six months from now, providers of visitor accommodation in Cardiff will need to account for Visitor Tax on new bookings for overnight stays and changes to existing bookings from 1 April 2027. Now is the time to start preparing and we are here to help every step of the way.”
