Getty ImagesCardiff is set to become the first place in Wales to introduce a tourism tax on paid overnight stays.
The fee would be £1.30 per person per night for most types of accommodation and 75p a night for campsites and shared rooms, and is estimated to raise £3.5m a year.
The money would go to the Welsh Revenue Authority, which would pay it to local authorities.
If the council’s cabinet grants approval, a 12-week public consultation will start on 1 December.
Legislation was passed in September which allows Welsh councils to charge a small fee to overnight visitors from April 2027.
It would apply to paid overnight stays of 31 nights or fewer in hotels, hostels, guesthouses, Airbnbs, campsites and temporary event accommodation.
Some visitors would be exempt, including:
- Children under 18 in campsites or shared rooms
- People staying more than 31 nights in a single booking
- Those in emergency or temporary housing arranged by the council
Councillor Russell Goodway, cabinet member for investment and development, said: “The proposed visitor levy in Cardiff would be used to improve the visitor experience for everyone coming to Cardiff, by funding marketing campaigns, or by supporting a broader range of events in the city.
“Not only do we want people to enjoy their experience coming to Cardiff, but we also want people to stay longer, so we need to increase our offer though investment.”
The proposed charge, he said, was lower than that typical in Europe.
Federation of Small Businesses Wales chief Joshua Miles said: “FSB has been and remains 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 damage done to local economies by its implementation.
“The small business sector has experienced a prolonged period of difficult economic conditions.
“With low consumer spending and disproportionately high costs still affecting some tourism businesses’ viability, they still need support to recover.”
He urged Cardiff to explore alternatives that “do not burden small business and… customers.”
Executive director of business group For Cardiff, Carolyn Brownell, said: “The introduction of [a] visitor levy by Cardiff Council presents a valuable opportunity to strengthen the city’s visitor economy, provided it is implemented in a way that ensures the fund provides additionality and is invested to support Cardiff’s tourism sector.”
Nick Saunders, founder and director of events organisers Depot Live, said: “I don’t think it’s a terrible idea, the council need to raise money for services.
“At those low levels I don’t think it is going to impact on people and a nominal amount like that could really benefit the council.”
There may be some negative response with the ongoing cost of living crisis, he said.
“Even though it is a nominal charge people will have a grumble,” he said.