Tourism tax cash ‘could plug gaps elsewhere’

Published

10 months ago

February 6, 2025

MONEY raised by a proposed visitor levy could be used to plug gaps in cash-strapped public services rather than support tourism as intended, the industry warned.

David Chapman, executive director at UK Hospitality Cymru, said the initial goal of the reforms – ringfencing funding to improve the visitor experience – has been eroded.

He told the Senedd finance committee: “We have within the proposed legislation, four items of potential spending that are actually removed quite considerably from that original ethos.

“I’ve lived all my life in Wales, we rely on public services, my family rely on public services, we use the health service – we’re all in favour of extra money going into that.

“But the intention of this originally was to try to assist the industry.”

Mr Chapman argued the visitor levy bill is not watertight enough to prevent the revenue raised being used to plug gaps in other areas such as health and education.

As drafted, the bill says proceeds must be used to: mitigate the impact of visitors; promote the Welsh language; support tourism; or improve local infrastructure and services.

Mr Chapman said: “If you are of a mind to fill gaps in budgets and to replace and displace existing spending then those four qualifying areas would allow you to do that.”

David Chapman, executive director at UK Hospitality Cymru

Rowland Rees-Evans, chair of the Wales Tourism Alliance, raised concerns about rushing “headlong” into a levy, warning it could cost the economy £40m and lead to 700 job losses.

But he welcomed mandatory registration of visitor accommodation providers under the bill.

Roy Church, co-chair of the Welsh Association of Visitor Attractions, described the bill as a “blunt instrument”, added that it is based on “hopelessly out-of-date” data from 2019.

He told the meeting on February 5: “The Welsh visitor economy is very different from what’s been looked at in the sessions before this committee.

“We’re not Barcelona, we’re not Venice, we’re not an international destination – our visitors come, 60% nearly, from Wales and the rest mostly from the UK.”

Mr Church, director of Tourism Swansea Bay, said: “It feels a bit like shooting yourself in the foot when you tax a local person to go to take their holiday break in their own country.

“The significance in our sector is the margins at which we work, we work generally with lower-income families … and this tax hits quite hard at their spending ability.”

He was in favour of under-18s not having to pay the levy, as in France and Germany, arguing scouts and educational groups, for example, should be exempt.

Labour’s Rhianon Passmore asked about comparative taxes across Europe and the proposed rates in Wales, £1.25 a night or 75p for hostels and camp sites.

Mr Chapman replied: “We have 17 different taxes which apply to our businesses. We are probably, in fact I’m sure, we are the most taxed sector of any sector.

“We pay three times more than the relevant business rates that we should be paying.”

Mr Chapman told the committee it would cost an extra £63 a week, including VAT, for a family of six which could make a holiday unaffordable.

Mr Rees-Evans asked: “Do we have to have VAT on tax? I’ve never heard of VAT on tax before. It sounds awful because tax is tax.”

Calling for a uniform rate across Wales, he said if one council went to £3 a night then the £63 for a family of six would leap to £126.

The witnesses welcomed a suggestion that the levy could be time-limited, for example to five days, to encourage people to stay longer.

Labour’s Mike Hedges said a three-night stay for a family of four at Bluestone resort in Pembrokeshire would cost £1,065, questioning the material effect of a £1.25 levy.

Mr Rees-Evans replied: “Price has an impact, anything that puts the price up.”

Zoë Hawkins, chief executive of Mid Wales Tourism, raised concerns about Wales gaining a damaging reputation as an expensive holiday destination.

She questioned comparisons to Catalonia, warning of a 10% fall in tourists to Wales.

Ms Hawkins said: “It’s twice the population of Wales, it’s got 18 million international visitors compared to our 800,000 … we need more visitors into Wales, not less.”

Pointing to a 23% fall in visitors to Wales in the past year, Emma Thornton, chief executive of Visit Pembrokeshire, questioned the timing and called for a level-playing field across the UK.

Jim Jones, chief executive of North Wales Tourism, said “Since Covid, it’s gone from bad to worse. We have … over 1,000 members and they are telling us that they are suffering.”

Cardiff Airport announces special Air France flights for Six Nations

Published

3 minutes ago

December 4, 2025

Tom Sinclair

Direct services to Paris-Charles de Gaulle launched to cater for Welsh supporters, French fans and couples planning a Valentine’s getaway

CARDIFF AIRPORT and Air France have unveiled a series of special direct flights between Cardiff (CWL) and Paris-Charles de Gaulle (CDG) scheduled for February 2026.

Timed to coincide with two major dates — the Wales v France Six Nations clash on Saturday 15 February and Valentine’s weekend — the flights are designed to offer supporters and holidaymakers an easy link between the two capitals.

For travelling French rugby fans, the services provide a straightforward route into Wales ahead of match day at the Principality Stadium, when Cardiff will once again be transformed by the colour, noise and passion that accompanies one of the tournament’s most eagerly awaited fixtures.

For Welsh passengers, the additional flights offer a seamless escape to Paris for Valentine’s Day, as well as opportunities for short breaks and onward travel via Air France’s wider global network.

Cardiff Airport CEO Jon Bridge said: “We’re thrilled to offer direct flights to such a vibrant and exciting city for Valentine’s weekend. Cardiff Airport is expanding its reach and giving customers fantastic travel options. We’ve listened to passenger demand and are delighted to make this opportunity possible. There is more to come from Cardiff.”

Tickets are already on sale via the Air France website and through travel agents.

Special flight schedule

Paris (CDG) → Cardiff (CWL):

13 February 2026: AF4148 departs 17:00 (arrives 17:30)
14 February 2026: AF4148 departs 14:00 (arrives 14:30)
15 February 2026: AF4148 departs 08:00 (arrives 08:30)
15 February 2026: AF4150 departs 19:40 (arrives 20:10)
16 February 2026: AF4148 departs 08:00 (arrives 08:30)
16 February 2026: AF4150 departs 16:30 (arrives 17:00)

Cardiff (CWL) → Paris (CDG):

13 February 2026: AF4149 departs 18:20 (arrives 20:50)
14 February 2026: AF4149 departs 15:20 (arrives 17:50)
15 February 2026: AF4149 departs 09:20 (arrives 11:50)
15 February 2026: AF4151 departs 21:00 (arrives 23:30)
16 February 2026: AF4149 departs 09:20 (arrives 11:50)
16 February 2026: AF4151 departs 17:50 (arrives 20:20)

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

Published

8 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.

Business

Welsh Govt shifts stance on business rates after pressure from S4C and Herald

Published

18 hours ago

December 3, 2025

Sarah-Jane Absalom

Ministers release unexpected statement 48 hours after widespread concern highlighted in Welsh media

THE WELSH GOVERNMENT has announced a new package of tapered business rates relief for 2026-27, in a move that follows sustained pressure from Welsh media — including S4C Newyddion and The Pembrokeshire Herald — over the impact of revaluation on small businesses.

In Milford Haven, the hard-pressed pub sector is already feeling the impact: the annual bill for The Lord Kitchener is rising from £5,000 to £15,000, while rates at the Kimberley Public House have nearly doubled from £10,500 to £19,500. The Imperial Hall’s rates are increasing from £5,800 to £9,200, prompting director Lee Bridges to question why businesses “are being asked to pay more when we use less services”. In Haverfordwest, the annual rates bill for Eddie’s Nightclub is increasing from £57,000 to £61,500.

A written statement, issued suddenly on Wednesday afternoon, confirms that ministers will introduce a transitional “tapering mechanism” to soften steep increases for tourism, hospitality and small independent operators. Full details will be published with the draft Budget later this month.

The announcement comes less than two days after The Herald’s in-depth reporting brought forward direct concerns from Pembrokeshire business owners and councillors, highlighting the uncertainty facing one of Wales’ most important local industries.

Herald reporting credited by senior councillor

Pembrokeshire County Council Independent Group Leader Cllr Huw Carnhuan Murphy publicly thanked The Herald for pushing the issue into the spotlight.

In a statement shared on Wednesday, Cllr Murphy said: “Welcome news from Welsh Government. Thanks to Tom Sinclair for running this important item in the Herald in relation to the revaluation of businesses and the consequences it will have for many.

He added: “Newyddion S4C hefyd am redeg y stori pwysig yma ynghylch trethi busnes.,” which in English is “and thanks to S4C Newyddion as well for running this important story about business taxes.”

He added that the Independent Group “will always campaign to support our tourism and agriculture industry, on which so many residents rely within Pembrokeshire”.

Media spotlight increased pressure on Cardiff Bay

On Monday, ministers said business rates plans would be outlined “within the next two weeks”.
By Wednesday afternoon — following prominent coverage on S4C and continued pressure from The Herald — Welsh Government released an early written statement outlining new support.

Industry sources told The Herald they believed the level of public concern, amplified by the media, “forced the issue up the agenda much faster than expected”.

A cautious welcome for ‘better than nothing’

Cllr Murphy welcomed the partial support, though he stressed it fell short of what many businesses had hoped for.

“This isn’t the level of support many were hoping for,” he said, “but it is certainly much better than nothing.”

Draft Budget expected soon

The full tapered support scheme will be detailed in the Welsh Government draft Budget, expected within a fortnight.

Tourism and hospitality representatives have reserved final judgment until the figures are published, but many have expressed relief that some support will continue, following weeks of uncertainty.