Business

Wales Tourism Alliance criticises Mark Drakeford’s visitor levy evidence

Published

10 months ago

February 14, 2025

THE WALES TOURISM ALLIANCE has strongly criticised comments made by Cabinet Secretary for Finance, Mark Drakeford, during his evidence session to the Welsh Government Finance Committee regarding the proposed Welsh Visitor Levy. The WTA argues that Drakeford’s remarks misrepresent the scale of the tourism industry and downplay the potential economic consequences of the levy.

What is the visitor levy?

The proposed Visitor Levy, commonly referred to as the “tourism tax,” would allow local authorities in Wales to introduce a charge on visitors staying in overnight accommodation. The Welsh Government argues that this levy would help support local infrastructure and services used by tourists. However, industry representatives and local businesses fear that it will deter visitors, particularly in key tourism-dependent areas such as Pembrokeshire.

Pembrokeshire, home to one of Wales’ most popular tourist destinations, Tenby, relies heavily on tourism revenue. Business owners, accommodation providers, and tourism operators in the county have expressed significant concerns that the levy could put off visitors, leading to reduced spending in local shops, restaurants, and attractions. Many have pointed out that, with the cost-of-living crisis already squeezing holiday budgets, an additional charge could push visitors to choose alternative destinations outside Wales.

Employment figures disputed

Drakeford claimed that the tourism and hospitality sector in Wales employs “a million” people and would not struggle to absorb the loss of several hundred jobs due to the levy. He also suggested that many tourism jobs are seasonal, have flexible hours, and are high-churn, implying that job losses would be manageable.

However, the WTA strongly disputes these figures, citing Welsh Government data that places the number of people employed in the sector at approximately 159,000. Given this significantly lower number, the loss of even a few hundred jobs would be far more impactful than Drakeford suggests. Furthermore, the WTA argues that seasonal and part-time jobs play a crucial role in providing employment opportunities, particularly for young people and those with caregiving responsibilities, such as parents and carers—groups that may struggle to find work in other sectors.

Concerns over data reliability

Drakeford also accused industry representatives, including the WTA, of selectively using worst-case scenario data in their evidence to the committee. The WTA rejects this claim, arguing that the data underpinning the Visitor Levy’s economic impact assessment is flawed and unreliable.

This concern was echoed by Professor Calvin Jones, the author of the Welsh Government’s own Visitor Levy Economic Impact Assessment. In his evidence to the Finance Committee, Jones stated: “We know very little about how the tourism economy in Wales works… we know very little about what drives visitors to come to Wales; we know almost nothing about how much they’re spending when they’re here… there isn’t even any data anymore on… how much is spent on accommodation… it should be a very uncomfortable place for Senedd Members to be when they’re trying to make policy or audit policy on tourism.”

Impact on families and educational visits

Drakeford defended the inclusion of children in the Visitor Levy by comparing it to VAT on sweets, arguing that children are not generally exempt from taxation. However, the WTA points out that this analogy is flawed, as children’s clothing, shoes, and books are zero-rated for VAT in the UK. The WTA also highlights that many other countries with tourism taxes exclude under-18s from such charges.

The per-person nature of the levy means that families will be disproportionately affected. For instance, two adults staying in accommodation for a week would pay a levy of £21, whereas a family of six would pay £63 for the same stay. Moreover, the WTA raises concerns that the levy will also apply to children on school trips and educational visits, adding an extra financial burden on families and schools.

Impact on Pembrokeshire’s tourism sector

Pembrokeshire businesses, particularly those in coastal tourist hotspots like Tenby, Saundersfoot, and St Davids, are among those voicing the strongest opposition to the levy. Many fear that it will discourage visitors from choosing Welsh destinations, instead opting for other parts of the UK or even holidaying abroad.

Tourism plays a vital role in Pembrokeshire’s economy, providing employment for thousands and sustaining local businesses. According to industry figures, over 4 million visitors come to Pembrokeshire each year, contributing hundreds of millions to the local economy. Hospitality providers in the region have warned that the levy could have serious repercussions, particularly for independent hotels, B&Bs, and campsites that rely on high occupancy levels during peak season to remain viable year-round.

A local B&B owner in Tenby, speaking to The Herald, said: “We are already seeing the effects of rising costs on bookings. If people are being asked to pay extra on top of accommodation prices, they will simply look elsewhere. We rely on repeat visitors and families who come year after year—this levy could drive them away.”

Wider economic impact

Drakeford dismissed the idea that the Visitor Levy would contribute to the cumulative challenges faced by the tourism and hospitality sector, stating that these issues “do not collide on all of the sector.”

The WTA strongly disagrees, asserting that tourism is a holistic industry where changes in one area inevitably impact others. They highlight several pressures already affecting tourism businesses, including:

The 182-day rule for self-catering properties.
National Insurance increases.
The removal of furnished holiday let tax relief.

According to the WTA, these combined factors are already forcing many small, locally-run self-catering businesses to close, further weakening the sector and putting more jobs at risk.

WTA’s final response

Rowland Rees-Evans, Chair of the WTA, criticised Drakeford’s approach, stating: “We are disappointed that Mr Drakeford is dismissing the valid concerns raised by industry experts and academics and making claims that are factually incorrect.

Many people in Wales are unaware that the Visitor Levy will apply to anyone staying in ‘Visitor Accommodation’—including children on educational visits and people working away from home, even if they already live in Wales.

The bottom line is that the Visitor Levy will cost people in Wales money and jobs—even in the best-case scenario presented by the Welsh Government. Mr Drakeford seems content to push through a policy that is poorly conceived, offers no guaranteed financial benefit to Wales, and threatens hundreds of jobs in an industry that employs over 20% of the workforce in some parts of the country.

Given the current economic climate, it is difficult to understand why the person responsible for managing the Welsh budget would consider imposing such a levy at this time.”

The debate over the proposed Visitor Levy continues, with industry representatives calling for more robust data, a clearer assessment of economic consequences, and a reconsideration of its implementation before the policy is finalised.

Business

Computer gaming lounge plans for Tenby cinema submitted

Published

5 hours ago

December 15, 2025

Bruce Sinclair - Local Democracy Reporter

FORMAL plans to turn Tenby’s former Poundland and Royal Playhouse cinema to a retro computer gaming lounge have been submitted to the national park.

Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby’s branch on White Lion Street.

In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a change of use of the former Gatehouse (Playhouse) Cinema, most recently used as a Poundland store to a retro gaming lounge.

This follows a recently submitted application for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former cinema, ahead of the wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front façade.

A supporting statement for the change of use scheme through agent Asbri Planning Ltd says: “The proposed retro gaming lounge will be inviting to all ages, including families, groups and individuals with no age restriction. The applicant has several similar premises across other parts of the UK and operates under a successful business model.

“This includes a fee being payable to enter the premises which thereby grants access to unlimited game time to all consoles/arcade machines. There will be no slot or coin-based reward games, so the proposal would not be considered/classed as gambling. The site will provide snacks and drinks (including alcohol) which will be canned/bottled drinks.

“The sale of such drinks would be ancillary to the overall function of the premises, and a separate alcohol licence will be submitted, accordingly.”

It adds: “The development would provide a much-welcomed addition to White Lion Rd which will improve the vitality and viability of the immediate area by promoting greater levels of footfall within the area and introduce greater variety to the shopping frontage at this location.”

It proposes opening hours of 10-10, Sunday to Thursday, and to 11pm on Fridays and Saturdays.

The application, and the related signage scheme, will be considered by park planners at a later date.

Prior to being a Poundland, the site was the Royal Playhouse, which had its final curtain in early 2011 after running for nearly a century.

The cinema had been doing poor business after the opening of a multiplex in Carmarthen; in late 2010 the opening night of the-then latest Harry Potter blockbuster only attracted an audience of 12 people.

Business

Independent brewers join call for business rates relief as pub closures feared

Published

2 days ago

December 13, 2025

Tom Sinclair

INDEPENDENT brewers have joined growing calls for urgent, pub-specific relief on Business Rates amid fears that community pubs across west Wales and beyond could be forced to close.

The Society of Independent Brewers and Associates (SIBA) has warned that changes announced in the Autumn Budget will see pub costs rise sharply over the next three years, with the average pub facing a 76% increase in Business Rates. By comparison, large warehouse-style premises operated by online and technology giants are expected to see increases of around 16%.

The issue will be discussed at a meeting taking place on Monday in Saundersfoot, where local publicans, small brewers and business representatives are due to come together to examine the impact of rising Business Rates and escalating operating costs. The meeting is expected to focus on the future sustainability of community pubs, particularly in coastal and rural areas where they often act as vital social hubs as well as key local employers.

Independent breweries are particularly exposed, SIBA says, as the vast majority of their beer is sold through local community pubs. Many small breweries also operate their own pubs or taprooms, meaning they are hit twice by rising rates. Some independent brewers have reported rateable value increases of up to 300%, creating new costs they say will be extremely difficult to absorb.

New industry research published on Thursday (Dec 12) suggests that introducing a pub-specific Business Rates relief of 30% from April 1, 2026 could protect around 15,000 jobs currently under threat in the pubs sector and help prevent widespread closures.

The call for action follows an open letter sent last week by SIBA’s board, expressing deep concern at the impact of the Budget’s Business Rates decisions on the hospitality sector.

Andy Slee, Chief Executive of SIBA, said: “The last orders bell is ringing very loudly in our community pubs after the shock changes to Business Rates in the Budget.

“Publicans and brewers feel badly let down by a system that still isn’t fairly addressing the imbalance between big global tech companies and small business owners.

“We were promised proper reform of Business Rates in the Labour manifesto last year and a rebalancing of the tax regime, but this has not been delivered. Pubs therefore need urgent help to address the planned increase in costs through a pub-specific relief, followed by full and meaningful reform.”

Those attending Monday’s meeting in Saundersfoot are expected to consider how local voices can feed into the national debate and press for urgent action to protect community pubs across Pembrokeshire.

Business

Cosheston Garden Centre expansion approved by planners

Published

2 days ago

December 13, 2025

Bruce Sinclair - Local Democracy Reporter

PLANS to upgrade a garden centre on the main road to Pembroke Dock have been given the go-ahead.

In an application to Pembrokeshire County Council, submitted through agent Hayston Developments & Planning Ltd, Mr and Mrs Wainwright sought permission for upgrade of a garden centre with a relocated garden centre sales area, additional parking and the creation of ornamental pond and wildlife enhancement area (partly in retrospect) at Cosheston Garden Centre, Slade Cross, Cosheston.

The application was a resubmission of a previously refused scheme, with the retrospective aspects of the works starting in late 2023.

The site has a long planning history, and started life as a market garden and turkey farm in the 1980s, and then a number of applications for new development.

A supporting statement says the previously-refused application included setting aside a significant part of the proposed new building for general retail sales as a linked farm shop and local food store/deli in addition to a coffee bar.

It was refused on the grounds of “the proposal was deemed to be contrary to retail policies and the likely impact of that use on the vitality and viability of nearby centres,” the statement said, adding: “Secondly, in noting that vehicular access was off the A 477 (T) the Welsh Government raised an objection on the grounds that insufficient transport information had been submitted in respect of traffic generation and highway safety.”

It said the new scheme seeks to address those issues; the development largely the same with the proposed new garden centre building now only proposed to accommodate a relocated garden centre display sales area rather than a new retail sales area with other goods, but retaining a small ancillary coffee bar area.

“Additional information, in the form of an independent and comprehensive Transport Statement, has now been submitted to address the objection raised by the Welsh Government in respect of highway safety,” the statement said.

It conceded: “It is acknowledged that both the creation of the ornamental pond and ‘overspill’ parking area do not have the benefit of planning permission and therefore these aspects of the application are ‘in retrospect’ and seeks their retention.”

It finished: “Essentially, this proposal seeks to upgrade existing facilities and offer to the general public. It includes the ‘relocation’ of a previously existing retail display area which had been ‘lost’ to the ornamental pond/amenity area and to provide this use within the proposed new building and moves away from the previously proposed ‘farm shop’ idea which we thought had merit.

“This revised proposal therefore involves an ‘upgrading’ rather than an ‘expansion’ of the existing garden centre use.”

An officer report recommending approval said that, while the scheme would still be in the countryside rather than within a settlement boundary, the range of goods sold would be “typical of the type of goods sold in a garden centre and which could be sold elsewhere within the garden centre itself,” adding: “Unlike the recent planning application refused permission it is not intended to sell delicatessen goods, dried food, fruit and vegetables, pet products and gifts.”

It added that a transport statement provided had been reviewed by the Welsh Government, which did not object on highway grounds subject to conditions on any decision notice relating to visibility splays and parking facilities.

The application was conditionally approved.