Cardiff Stands Alone as Welsh Councils Reject Visitor Levy

Cardiff council is on track to become the only local authority in Wales to introduce the visitor levy in 2027, after Anglesey rejected the tourism tax and Gwynedd and Conwy both postponed decisions on the nightly fee last week.

The Welsh government confirmed that from 28 September, people staying in Cardiff must pay the levy on bookings made for 1 April 2027 onwards. Under legislation published in 2024, councils that opt in can charge a fixed price per person, per night, applying to both adults and children.

The rates are set nationally: 75p plus VAT per person per night for hostels, shared rooms and tent pitches, and £1.30 plus VAT for most other types of accommodation. Stays longer than 31 nights are exempt, as are people in temporary accommodation or homeless hostels. Under-18s are exempt from the 75p rate. Councils keep the revenue ring-fenced for tourism promotion, the Welsh language, and infrastructure or services used by visitors, and could raise fees later after consultation and 12 months' notice.

Expert calls for sub-county flexibility

Dr Linda Osti, senior tourism lecturer at Bangor University, said decisions on how much is charged and how a levy is brought in should be made at a more local level rather than through a one-size-fits-all approach.

"It's one legislation for every county and it's applied at county level, when we should think about sub-county level," she said.

"Geographically, if we think about Gwynedd... we cannot have the same levy on Eryri or Porthmadog. The same legislation cannot work for Cardiff or in Anglesey, on the coast. There are different visitors, there are also different conditions."

Osti, who co-authored a 2024 report for the Welsh government studying how visitor levies worked in other countries, also pointed to "mistrust" from tourism businesses about how local authorities would spend the money, contrasting Wales with the Italian Alps, where decisions are made through smaller co-operatives.

She noted that England's approach, announced earlier this month, gives regional mayors new powers to charge an uncapped levy on overnight stays — and appears more flexible.

"So local authorities can decide the percentage to charge and whether to introduce exemptions, and it seems they may also decide for how many nights, and whether to charge children or not," Osti said. "I wish Wales would go back and think about flexibility and revisit the legislation."

Councils cite consultation pushback

On Thursday, Anglesey council confirmed it would not introduce the tax for now, "given the challenges already facing its tourism industry". A public consultation drew more than 2,000 responses from residents, businesses and tourism stakeholders, with concerns raised about increased costs for visitors and the island's "competitiveness" as a holiday destination.

Cyngor Gwynedd agreed to delay its decision so more analysis could be done of almost 7,000 consultation responses — a number it called "much higher" than other areas. Initial figures showed a mixed reaction: more support from residents, higher opposition from visitors and businesses.

In Conwy, council members deferred a decision until "further evidence and practical experience are available". Consultation concerns there included fears over reduced bookings, shorter stays and reduced visitor spend at a time when local businesses face economic pressures.

Split among tourism operators

Bethan Evans, of family-run Dolgamedd caravan park in Dolgellau, Gwynedd, supports introducing the tax to help the area cope with busy roads and car parks at peak times. She said she was "disappointed" that councils appeared to be "scared of a noisy, selfish minority" opposing the fee, and called the 75p per-night camping levy "nothing" compared to the rubbish some visitors leave behind.

"You get people [with] brand new tents who can't be bothered to put a wet tent back in the car so they try and dump them in our bins, which we pay for," she said. "There is such a lot of that happening, and the amount of food waste is just incredible. So it's ridiculous saying they can't afford it, oh yes they can."

She added: "Some people are wonderful, and those people are happy to pay the tax. We want people who respect the area, who are willing to pay the tax, so that's the kind of tourist I'd like."

Nicky Williamson, of the Professional Association of Self-Caterers (PASC) UK Cymru, described the pause across the three counties as a "welcome victory for common sense and for listening to the evidence".

"Tourism businesses across Wales have been clear about the pressures they are already facing, and the response to these consultations shows the strength of concern about adding another cost to Welsh holidays," she said. "This is simply the wrong time to introduce another cost for either businesses or visitors. We welcome councils listening to the evidence and urge others to do the same before taking decisions that could have long-term consequences for Wales' visitor economy."

A Welsh government defence

A Welsh government spokesperson said the legislation allows decisions to be taken at local level, with councils able to introduce the levy "to support investment in tourism services and facilities".

"It is for local authorities to decide if they want to introduce a levy in their area following consultation with their communities," the spokesperson said. "Cardiff, for example, will implement a levy from April 2027, generating revenues to be reinvested in and around the city that will further enhance the experience for visitors."

Osti argued Cardiff is exactly where the current legislation should work well, particularly with business tourists who are less price sensitive.

"Why would it work in Cardiff? Because it's a typical city destination. People tend to go to Cardiff for a few nights," she said. "For two people, two nights, it's not even £10 extra when they're paying £100, £140, £160 per night for a double bedroom."

She added that Cardiff "can easily organise events as Manchester and Liverpool did in the past... they could do very good things with the charge".

The visitor levy originated in a 2021 co-operation deal between Labour and Plaid Cymru. With England now offering regional mayors an uncapped, more flexible levy, the pressure on Wales to revisit its fixed-rate framework — and on remaining councils weighing adoption — will only grow as the 2027 start date approaches.