Business

Wales Tourism Alliance criticises Mark Drakeford’s visitor levy evidence

Published

1 month 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

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

18 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.