Tourism tax cash ‘could plug gaps elsewhere’

Published

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Association of Visitor Attractions, described the bill as a “blunt instrument”, added that it is based on “hopelessly out-of-date” data from 2019.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

UK’s largest semiconductor facility secures major investment

Published

18 hours ago

March 27, 2025

Tom Sinclair

Newport factory to support 500 new jobs and play vital role in EV supply chain

WALES is set to benefit from a £250 million investment into its advanced manufacturing sector, as US tech giant Vishay Intertechnology commits to expanding operations at the UK’s largest semiconductor facility in Newport.

The investment is a major vote of confidence in Wales’s industrial capabilities and will further strengthen South Wales’s status as home to the world’s first Compound Semiconductor Cluster. It comes as part of the UK government’s Plan for Change to grow the economy, support skilled jobs, and enhance national resilience in critical sectors.

Chancellor of the Exchequer Rachel Reeves will visit the Newport site today (Thursday, March 27) to formally welcome the investment, which will boost production of Silicon Carbide semiconductors—an essential component in electric vehicles (EVs). These next-generation chips enable faster battery charging, improved energy efficiency, and extended driving ranges.

The development is expected to directly create over 500 high-value, highly-skilled jobs in Newport and support hundreds more across the wider supply chain. The project is backed by the UK’s Automotive Transformation Fund (ATF), which supports innovation and domestic supply in critical technologies such as semiconductors.

Chancellor Rachel Reeves said: “Under this government, the UK is open for business. This is exactly the type of investment that will help us grow the economy, create highly-skilled jobs, and boost opportunity across the country, as we deliver on our Plan for Change to get more money into working people’s pockets.”

The investment follows the Chancellor’s Spring Statement, where she announced a “new era of security and national renewal.” The Office for Budget Responsibility has upgraded growth forecasts for 2026 and beyond, with households expected to be £500 better off per year by the end of this Parliament compared to under the previous government.

The announcement marks a major step in the UK’s ambition to become a global leader in advanced manufacturing. From 2010 to 2023, the UK saw the fastest growth in manufacturing productivity per job among G7 nations.

Business and Trade Secretary Jonathan Reynolds said:
“This is a huge vote of confidence in the Welsh economy and our plans to make Britain the destination of choice for investment in the industries of tomorrow. Vishay’s investment will help secure a domestic supply of semiconductors for our world-leading automotive and clean energy sectors—key drivers of long-term economic growth.”

Secretary of State for Wales Jo Stevens added:
“This massive investment by Vishay and the UK Government is a huge boost for Wales’s world-leading semiconductor industry. It will build on the success of our advanced manufacturing, renewable energy, and defence sectors—creating and supporting hundreds of skilled, well-paid jobs across South Wales.”

Vishay’s Chief Operating Officer for Semiconductors and Chief Technology Officer, Roy Shoshani, said:
“This is an exciting moment and the beginning of our growth journey in the UK. With a skilled workforce and strong government backing through the Industrial Strategy, the UK has an opportunity to lead in advanced semiconductor manufacturing—enhancing economic security and helping deliver Net Zero.”

The investment coincides with the Chancellor’s participation in the Invest in Women Taskforce roundtable in Wales, which has secured over £250 million in funding commitments for female entrepreneurs.

The Automotive Transformation Fund—delivered in partnership with the Advanced Propulsion Centre (APC)—has already helped unlock more than £6 billion in private sector investment for the UK’s transition to zero-emission vehicles. In addition, the Autumn Budget committed over £2 billion to capital and R&D funding for zero-emission vehicle manufacturing over the next five years.

Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), said:
“This significant investment in compound semiconductors is a huge contribution to the innovation and advanced technology necessary to drive the future of UK automotive. British-made next-generation semiconductors will create jobs, support supply chains, and enhance the UK’s strategic capabilities.”

Business

Pembrokeshire consultant shortlisted for UK Startup Award

Published

19 hours ago

March 27, 2025

Tom Sinclair

CERI CRICHTON, a Pembrokeshire-based business consultant specialising in supporting charities and social enterprises, has been nominated for the UK Startup Awards in the Business, Consulting & Management StartUp of the Year category.

In just two years, her consultancy business, The Round House, has helped organisations secure nearly £1 million in funding, supporting vital initiatives that drive social change.
Ceri founded The Round House to ensure small charities and social enterprises receive the kind of practical, hands-on business support that larger organisations often take for granted.

Her work focuses on building financial confidence, strengthening governance, and helping organisations plan for long-term sustainability.

Her expertise spans fundraising, business planning, project management, and governance, enabling charities and social enterprises to grow, innovate, and deliver impactful work in their communities.

Among the organisations she has supported are Get The Boys a Lift, SNAP Specialist Play, Pembrokeshire Action for the Homeless, VC Gallery and Pembroke Town Walls Trust, along with many others that benefit from her tailored approach.

Speaking about her nomination, Ceri said: “I’m absolutely thrilled to be shortlisted for this award. At The Round House, its all about collaboration and fresh thinking to help charities and social enterprises do what they do best. There are a lot of pressures facing the third sector right now, and I feel proud to support the hard work of my wonderful clients across South Wales. It’s amazing to see the difference focus and funding can make, and I feel privileged to be part of that work.”

Professor Dylan Jones-Evans OBE, the creator of the UK StartUp Awards, said: “New businesses are the driving force behind any thriving economy, generating employment, pioneering innovation, and contributing to prosperity across the UK. This year’s finalists embody the very best of entrepreneurial spirit – spotting opportunities and, through dedication, skill, and resilience, turning them into thriving ventures that are making a tangible difference. More importantly, all the winners will go on to represent their region at the 2025 UK National StartUp Awards final later this year”.

The UK StartUp Awards was launched to recognise the booming start-up scene across the UK. The Awards celebrate the achievements of entrepreneurs driving change in their industries.
The cohort of finalists will be considered for the regional prizes by a panel of seasoned judges with experience founding or supporting entrepreneurial ventures. The winners from each region will then be invited to the first UK final taking place at Ideas Fest, the Glastonbury for Business festival in Hertfordshire on 12th September 2025.

Ceri’s nomination reflects her outstanding contributions to the non-profit sector, from securing critical funding to guiding organisations toward long-term sustainability.
The awards take place on Thursday, June 19th in Cardiff.

Business

Roadchef installs EV charging points at Pont Abraham Services

Published

19 hours ago

March 27, 2025

Tom Sinclair

ROADCHEF has unveiled six new high-powered 360kW electric vehicle chargers at its Pont Abraham site on the M4 at junction 49.

These latest additions feature 360kW charging capability and CCS connectors, ensuring compatibility with a wide range of electric vehicles. With a charge rate of up to 360kW, drivers can rapidly charge their vehicles, significantly reducing downtime during their journey.

In addition to the charging facilities, visitors to Pont Abraham Services can take advantage of a range of amenities, including 2 hours free parking, free Wi-Fi and a selection of shopping and dining options, making their charging experience both quick and convenient.

A recent report from the UK Parliament’s public accounts committee highlights the disparities in provision of EV charging infrastructure. Roadchef’s expansion at Pont Abraham directly addresses this issue by strengthening Wales’ charging network and adding to the 678 rapid and ultra-rapid charge points available across the country.

With the electric vehicle market continuing to grow, as highlighted by the SMMT, Roadchef’s continued investment in charging infrastructure is a crucial step in future-proofing Britain’s roads.