Overnight Visitor Tax Approved for Wales – What It Could Mean for Cardiff

Visitors spending the night in Cardiff and other parts of Wales could soon be paying a little extra, as a new law allowing local councils to introduce a tourism levy has been passed by the Senedd.

The new legislation gives Welsh councils the power to charge a small nightly fee, likely around £1.30 per person, for overnight stays in hotels and similar accommodation. For hostels and campsites, the proposed charge would be lower, at 75p per person per night. Children under 18 will be exempt at hostels and campsites.

The Welsh Government hopes the tax could raise up to £33 million a year if implemented across all local authorities, with the funds being used to support and enhance tourism hotspots, protect natural environments, and invest in local services affected by high visitor numbers.

While the aim is to create more sustainable tourism, some businesses and hospitality leaders have raised concerns, fearing the extra charge could discourage overnight stays, especially in popular city destinations like Cardiff.

So far, Cardiff Council has expressed interest in exploring the levy, alongside Gwynedd and Anglesey. Other councils across Wales are still considering their positions, and each will need to opt in before the tax becomes active locally.

The move has sparked political debate. The Welsh Conservatives have pledged to scrap the levy if they win the 2026 Senedd election, arguing it could harm the tourism industry. In contrast, Plaid Cymru backed the bill, giving the Welsh Government the majority it needed to see it passed.

The new law doesn’t mean the levy will be introduced straight away. Local authorities will first need to carry out consultations and planning, and businesses will be given advance notice before any charges are brought in.

For now, visitors planning a stay in Cardiff won’t see an overnight tax added just yet, but it could be on the horizon.