Business
Welsh tourism tax plan ‘ill thought out’, Tories warn
CONSERVATIVE Senedd Members warned “ill thought out and unnecessary” plans for a tourism tax will make people think twice about holidaying in Wales.
Peter Fox raised concerns about visitors being priced out after the Welsh Government unveiled a tourism bill, which would give councils powers to charge for overnight stays.
Mr Fox told the Senedd “This is an industry that should be supported, not exploited,” with one in seven jobs in Wales relying on tourism, equating to almost 200,000 people.
The Tories’ shadow finance secretary warned the tax could cost hundreds of jobs, with the hospitality sector already paying double the business rates of counterparts in England.
He said the tourism industry is still rebuilding from the pandemic, warning: “The legislation will create another significant pressure on an incredibly hard-pressed sector.”
Mr Fox, who represents Monmouth, raised concerns about the “hidden” costs of bureaucracy under the bill, which would also introduce a register of tourism providers.
He rejected the depiction of £1.25 per person per night as minimal, saying a family with four children would have to budget an extra £50 to £60 for a week’s stay.
His Conservative colleague Darren Millar said he was angry on behalf of businesses when the tourism tax, which would raise up to £33m a year from 2027, was first mooted in 2017.
Warning tourists will go to the north-west coast of England, he said: “We know that visitors who come to places like Rhyl, Colwyn Bay, Llandudno – many of them are price-sensitive.”
The Clwyd West Senedd Member blamed the Welsh Government’s “anti-tourism” messaging for a fall in last year’s visitor numbers which were down 14% on 2019.
But Luke Fletcher welcomed the tourism bill, which was a commitment in the now-collapsed cooperation agreement between Plaid Cymru and the Welsh Government.
He said: “If you had listened to what some have said … you’d swear that in order to visit Wales you’d have to remortgage your house because it would be so expensive. That simply isn’t the case, is it?”
Mr Fletcher, who represents South Wales West, described £1.25 a night as reasonable, pointing to a lower rate of 75p for stays at hostels and camp sites.
Mike Hedges, a Labour backbencher, said visitor levies are common across Europe, with more than 60 places around the world having similar taxes.
He asked: “Why would a visitor levy affect Wales when it does not affect Spain, Greece or France – the three most visited destinations in Europe?”
In a statement on November 26, Mark Drakeford stressed the levy is rooted in fairness, with tourists being asked to make a “small” contribution to public services.
He said: “Many Senedd Members here today will have paid a levy abroad, probably without noticing perhaps. Governments worldwide recognise that visitor levies are an effective means to offset some of the costs associated with tourism.”
Pointing to charges in Manchester and similar legislation passed in Scotland this year, the former First Minister said: “Our proposals in Wales are rowing with the tide, not against it.”
Prof Drakeford, who was appointed finance secretary in September, criticised opposition attempts to “catastrophise what is a modest measure”.
Closing his statement, he told the Senedd: “This is a step closer towards a fairer, more sustainable Wales where the benefits and responsibilities of tourism are shared by all.”
Business
Kurtz praises Pembrokeshire Ports for rising to the challenge
SHADOW MINISTER for Economy and Energy and Senedd Member for Carmarthen West and South Pembrokeshire, Samuel Kurtz, has commended Pembrokeshire’s ports and ferry operators in the Senedd for their exceptional response in managing increased traffic following severe disruptions at Holyhead Port.
The disruption, caused by Storm Darrah, brought winds of up to 96 mph in early December, causing widespread damage across Wales and significantly impacting Holyhead Port.
As one of the UK’s busiest ports, Holyhead typically handles 2 million passengers annually and serves as a critical link to Ireland for commercial shipping and ferry services.
In response to Holyhead’s temporary closure, Pembroke Port and Fishguard Harbour, along with ferry operators, stepped up to ensure the seamless movement of goods and passengers. Key vessels involved in this effort included Irish Ferries’ James Joyce and Isle of Innisfree, alongside Stena Line’s Stena Nordica and Stena Adventurer, which sailed from Pembrokeshire’s ports to support transportation needs.
Samuel Kurtz, who previously worked onboard ships on the Fishguard to Rosslare crossing, said following a statement in the Senedd Chamber: “The performance of Pembrokeshire’s ports and ferry operators during this time of increased demand has been nothing short of remarkable. The contributions of vessels such as Irish Ferries’ James Joyce and Isle of Innisfree, and Stena Line’s Stena Nordica and Stena Adventurer, underscore the strategic importance of our region in maintaining Wales’ economic resilience and connectivity.
“While we look forward to Holyhead Port resuming full operations, Pembrokeshire’s ports and ferries have proven their readiness to rise to the occasion, ensuring that Wales remains open for business. This southern corridor from Pembrokeshire to Rosslare has demonstrated its importance.
“This success is a direct result of the dedication, skill, and professionalism of the men and women who operate our ports and ferries. Their hard work deserves our deepest gratitude, as they have played a vital role in minimising disruption and safeguarding the flow of trade and travel during these uncertain times.”
Business
Land purchase opens door to new West Wales homes
A MAJOR developer has purchased land in Saundersfoot, clearing the way for it to bring new homes to the town.
Persimmon Homes West Wales secured planning permission to build 72 new, high-quality homes at Sandy Hill in the popular Pembrokeshire town back in July.
This agreement means all the pieces are in place for the builder to start works on site, with a view to having their first properties on the market this summer.
The scheme includes a mix of quality new one to four-bed detached and semi-detached homes as well as terraced houses and apartments that will help meet local housing needs and open the door to home ownership for more local families. The properties will be finished in render and stone.
Boasting a number of proposed community benefits, the development will bring a range of facilities to the local community, including an equipped play area at the heart of the site, contributions to highway and active travel upgrades, and a dedicated active travel link that connects the site back to Sandy Hill Road.
The design also incorporates a sustainable drainage system with bio-retention areas and rain gardens, green technologies such as solar panels and electric vehicle charging points, as well as ecological enhancements to mitigate impacts on dormouse habitats and preserve existing trees and hedgerows.
As part of the housebuilder’s community contribution, Persimmon will also transfer 35% of the homes (25 in total) to a local housing provider for rent and shared ownership to help alleviate pressure on Pembrokeshire’s housing list.
The five-star developer donates £48,000 across Wales each year to good causes and much-valued organisations as part of its Community Champions initiative. Recent local recipients include Saundersfoot Cricket Club, Saundersfoot Rotary Club’s Tenderfoot programme, and the 2025 Saundersfoot New Year’s Swim.
Welcoming the agreement, Persimmon Homes West Wales’ Managing Director, Stuart Phillips, said:
“We are delighted to have cleared this final hurdle that now means we can commence works at Sandy Hill to deliver much-needed new, high-quality homes to Saundersfoot.
“Persimmon is determined to leave a positive and lasting legacy where we build and we look forward to working with the local community and its leaders as we bring forward these new homes.
“I want to give my thanks to everyone involved in the Persimmon team as well as the local planning authority for all the work they’ve put in to get to this point.”
Business
UK, 3 in 10 Britons in economic difficulty. Purchasing power down 41% since 2004
The people who have the most problems are women (30%) and are between 35 and 49 years old (39%)
The purchasing power in the UK has dropped by 41% over the last 20 years. Today, £100,000 left in a bank account since 2004 without being invested would now be worth £59,021.
This figure is one of the findings from a study conducted by Tickmill, an international online trading broker that compared the economic situation in the UK and the European Union through the infographic “Purchasing Power and Cost of Living: UK vs EU”.
The analysis reveals a slight decline of 0.4% in the UK’s purchasing power, which currently stands at £41,573. In contrast, the European Union has seen a modest rise of 0.1%, reaching £40,874.
Why is purchasing power declining in the UK? One key factor is the cost of living. If the UK were still part of the European Union, it would rank as the fifth most expensive country, behind Ireland, Luxembourg, Denmark, and the Netherlands.
Unsurprisingly, 3 in 10 Britons are struggling with the cost of living. Women (3 in 10, compared to 25% of men), those aged between 35 and 49 (4 in 10), households earning less than £15,000 (6 in 10), and single parents (1 in 2) are among the most affected groups.
Among UK nations, Northern Ireland is the hardest hit, with 34% of its population facing financial difficulties, followed by Wales (31%), England (28%), and Scotland (22%). In England, the North East has the highest percentage of people struggling, with 4 in 10 residents affected. Even in London, the high costs impact 1 in 4 adults.
In response to these challenges, Britons are making significant adjustments:
- 53% have cut back or delayed spending on smaller items like eating out, entertainment, subscriptions, clothing, toys, books, etc.;
- 52% have reduced household energy consumption;
- 48% have decreased their grocery spending;
- 41% have scaled back or postponed major expenditures, such as holidays, cars, and weddings;
- 26% are working longer hours, taking on overtime, or pursuing additional jobs to earn extra income.
The British also made changes on the financial side. One in four adults has been forced to dip into their savings or investments to cover daily expenses. Moreover, 44% have stopped saving or investing entirely or have reduced their savings and investments—a 4% increase compared to 2023.
The lack of investment is another critical factor contributing to the decline in purchasing power. It is estimated that 13 million UK residents hold £430 billion in cash deposits but do not invest. The reasons? Seventy-four percent say they cannot compare investment products effectively, and 43% are afraid of losing their money.
A lack of knowledge and fear are preventing many savers from taking advantage of an important opportunity: preserving or increasing their purchasing power in the long term.
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