Cardiff Considers Tourism Tax and Potential Premium on Event Days
Cardiff is exploring the possibility of implementing a tourism tax and even adding a premium during event days to cope with the growing number of visitors to Wales’ capital. The Welsh Government has outlined the policy, but it will ultimately be up to each of the 22 councils in Wales to decide whether to adopt it. If approved, local residents will be consulted before its implementation. The proposed fee ranges between 75p to £1.25 per night, aiming to address the costs associated with tourism.
Cardiff council’s leader, Huw Thomas, expressed support for the policy, highlighting the expenses incurred by the council for hosting large events without direct financial benefits in return. He emphasised the indirect costs such as city maintenance and cleaning, which are currently funded by the council without sufficient returns. Thomas believes that introducing a levy would enable the council to better manage tourism demand and maximise benefits for businesses and the city.
During a Senedd finance committee hearing, Cllr Thomas referenced Edinburgh council’s 5% premium on event days, suggesting a similar approach for Cardiff. The proposed levy would apply for the first five nights of any stay, with the policy set to commence in July 2026. Thomas also mentioned the potential to implement varied rates based on hotel star ratings, similar to the system in Paris, to cater to different establishments.
Council representatives stressed the importance of flexibility in the regulations, allowing local councils to tailor the policy to suit their specific regions. Swansea council leader, Rob Stewart, highlighted the need for councils to consult with local businesses to ensure their support and understanding of the benefits the levy could bring. Differentiated tourism tax schemes across Europe were cited as examples for consideration.
Gwynedd Council officials indicated their interest in conducting a pilot scheme before full-scale implementation, considering potential implications on the tourism sector, particularly given the current economic challenges. Cllr Thomas, representing the Welsh Local Government Association, foresees councils opting to introduce the levy to share the financial burden sensibly and sustainably. Early adopters are encouraged to address any challenges promptly.
The tourism levy in Cardiff could potentially generate £4 million for the city, but questions remain regarding the net revenue post-regulation and operational costs. With various councils expressing support for the initiative, it is anticipated that the levy will be gradually rolled out throughout Wales. Each council aims to strike a balance between addressing tourism-related expenses and ensuring the benefits are maximised for local businesses and communities.