Business
Wales Tourism Alliance criticises Mark Drakeford’s visitor levy evidence

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
Huge slurry lagoon to be built in Pembrokeshire countryside

PLANS to build a new slurry lagoon at a 650-dairy herd Pembrokeshire farm have been given the go-ahead.
In an application to Pembrokeshire County Council, Richard Morris of Bowett Ltd sought permission for the construction of the lagoon, and associated works, at Quoits Hill Farm, Bentlass Road, Hundleton, near Pembroke.
A supporting statement through agent Cynllunio RW Planning Ltd stressed the applicant does not intend to increase livestock numbers on farm as a result of this 60 by 35 metre development.
“The Morris Family farm at Quoits Hill Farm and specialise in dairy farming. The farm is home to approximately 650 dairy cows plus followers. The herd is autumn calving with milk sold to Laprino. The home farm is grass based and extends to over 300 acres, with more off lying land utilised for growing winter forage.
“The family have invested significantly in recent years in on farm infrastructure to include a rotary milking parlour, silage clamps and covered feed yards.”
It added: “The proposed development seeks to increase the farms slurry storage capacity to above the five-month storage required by NVZ regulations. The existing slurry store and slurry handling facilities are not adequate to comply with the new regulations.”
It went on to say: “The proposed store will provide the farm with 6452 cubic meters of storage capacity (minus freeboard) which will equate to over 171 days storage. It is proposed to use the existing field slurry store as a lightly fouled water store to collect the parlour washings and reduce the size of the store required. Slurry will continue to be scrapped into the existing yard store and then pumped to the new store when required. This work will be monitored closely to reduce the risk of any leakage.”
It concluded: “The proposed development will enable slurry to be spread during the growing season rather than during more difficult weather conditions in the winter. This will be of benefit to farm efficiency and the wider environment.”
The application was conditionally approved.
Business
Post Office spent £600m to keep using flawed Horizon system

Roch postmaster among those still seeking compensation
THE POST OFFICE has spent more than £600 million of public money continuing to use the discredited Horizon IT system—despite accepting more than a decade ago that it needed replacing.
New documents reveal that then Prime Minister Tony Blair and senior Labour ministers were warned as far back as 1999 about serious flaws in the original £548 million deal with Fujitsu. A Treasury memo at the time flagged that the Post Office would not own the core computer code, leaving them locked into the supplier and vulnerable to spiralling costs. Officials warned Fujitsu could use the situation to “drive a costly settlement.”
Since then, the total spent on Horizon contracts has reached £2.5 billion, including £600 million spent since 2012 when the Post Office first admitted it needed to move on from the system. Replacement efforts have repeatedly failed, with a £40 million IBM project abandoned in 2016 and another attempt scrapped in 2022.

The latest replacement project—an internal system called New Branch IT (NBIT)—has run into delays and ballooning costs, with estimates now topping £1 billion. Despite past failings, the Post Office and Fujitsu are expected to remain in partnership until at least 2030.
The scandal surrounding Horizon continues to grow, following the wrongful prosecution of over 900 sub-postmasters. Although private prosecutions based on Horizon data were halted in 2015, campaigners say the damage done is still being felt by victims across the UK—including here in Pembrokeshire.
One of them is Tim Brentnall, who was just 22 when he and his parents bought the Roch Post Office. In 2010, he was prosecuted after a £22,500 shortfall appeared in the accounts—despite doing nothing wrong. Advised to plead guilty, he received an 18-month suspended sentence and 200 hours of community service. His conviction was quashed in 2021.
Earlier this year, Brentnall told the BBC he was “in disbelief” after being offered less than 17% of the compensation he had claimed. The offer came with a 50-page letter rejecting much of his legal and forensic case, and over 15,000 documents to sift through. He is now re-submitting the claim.
“There are people far older than me who should be enjoying their lives now,” he said. “Instead, they’re still fighting. People are dying without seeing justice. It’s not right.”
The Post Office says it is “fundamentally changing” as an organisation and has paid out more than £768 million to over 5,100 people affected by the Horizon scandal. However, many victims and campaigners say the compensation process remains slow, unfair, and deeply distressing.
Postal minister Gareth Thomas recently confirmed a further £276.9 million in government funding for the Post Office, including £136 million for future IT projects. He said the continued use of Horizon reflected “past underinvestment” and that postmasters needed better tools going forward.
A spokesperson for Tony Blair said the former PM took concerns over the Horizon contract seriously at the time and acted on independent advice. “It is now clear the Horizon product was seriously flawed. Mr Blair has deep sympathy for those affected.”
A separate 1999 memo was also sent to then-Chancellor Gordon Brown, but a spokesperson for Mr Brown said he would not have seen it and had no involvement in awarding the contract.
Despite public statements about reform, doubts remain over whether NBIT will ever be delivered—and whether true justice will ever be achieved for those whose lives were torn apart by the Horizon scandal.
Business
Wales and Japan strengthen partnership at Tokyo investor showcase

WALES’ longstanding relationship with Japan was reaffirmed and deepened this week during a high-profile investor showcase in Tokyo, part of the Welsh Government’s Year of Wales in Japan 2025 celebrations.
The Wales Investor Showcase, hosted by Cabinet Secretary for Economy, Energy and Planning Rebecca Evans, brought together leading Japanese entrepreneurs and companies across a range of sectors, with a focus on fostering long-term trade links and collaborative ventures.
The event centred on strategic areas of mutual interest, including renewable energy, digital innovation, and advanced manufacturing. It marked a significant moment in the decades-old partnership between the two nations, which began with the first wave of Japanese investment into Wales in the 1970s. Today, over 70 Japanese companies operate in Wales.
Cabinet Secretary Rebecca Evans said: “Deep-rooted connections between Wales and Japan have flourished for generations, with trade links thriving over the last 50 years.
“With the world’s economies searching for stability and growth, now is the perfect time to strengthen our ties with Japan. The optimism surrounding our shared ambitions has been truly inspiring.
“The showcase was about forging new connections, building on existing relationships, and exploring opportunities for sustainable, mutual growth that will benefit both nations for the next 50 years and beyond.
“It also highlighted the skills, creativity and world-class innovation that define modern Wales.”
Kazushi Ambe, Senior Adviser of Sony Group, echoed the importance of the relationship:
“The partnership between Wales and Japan, built over more than half a century, reflects deep mutual respect, shared values, and a strong sense of connection.
“In a time of constant change, it is these enduring qualities that continue to unite us. This showcase was a valuable opportunity to strengthen that bond and explore new avenues for collaboration.
“As both sides embrace new challenges and pursue progress, I hope this partnership will continue to evolve and thrive.”
As part of her visit to Japan, the Cabinet Secretary will also host a Wales Day event at the Osaka Expo, promoting Welsh innovation, culture, and trade potential on the global stage.
In addition, the Welsh Government has announced two upcoming trade missions to Japan later this year, aimed at helping Welsh businesses explore export opportunities in one of Asia’s most significant markets.
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