Business

Wales Tourism Alliance criticises Mark Drakeford’s visitor levy evidence

Published

1 year 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

Tudor Glen Caravan Park Pembrokeshire planning call

Published

1 day ago

May 10, 2026

Bruce Sinclair - Local Democracy Reporter

A CALL for a Pembrokeshire caravan site to be allowed static caravans in lieu of touring ones, which the applicant says was allowed back in 1988, has been submitted to the national park.

In an application to Pembrokeshire Coast National Park, Keith Stevens of Tudor Glen Caravan Park, Jameston, through agent Lambe Planning & Design Ltd, seeks a certificate of lawfulness of an existing use of the site to establish the status of a 1988 planning permission.

Essentially what that means is the applicant is seeking confirmation of details of that permission as to whether it includes static or touring caravans.

A supporting statement says: “Tudor Glen Caravan Park is a long-established family owned and operated Holiday Park. The Park extends to approximately six acres and caters for families within static caravans, touring caravans, motorhomes and tents.

“The Park is exceptionally well run and achieved the 2025 runner up award for Best Family Campsite South Wales. The Park has a range of modern purpose-built facilities including a heated swimming pool, laundrette, dedicated play area, games room and full amenity facilities.”

Covering the 1988 approval of removing two previous conditions connected to the site, granting permission for up to 50 caravans and occupancy of March 1 to January 9, it says: “It does not stipulate that the caravans must be removed from the site during the ‘close period’ as would be the case if the consent related to touring caravans,” adding: “It is therefore clear that the intentions of that planning application and the consent granted relates to the siting of up to 50 caravans and not specifically touring caravans.

“If that consent were to be partially restricted to touring, a touring condition would have been imposed and / or a condition requiring that the caravans must be removed from the site during a close period – it doesn’t.”

It concludes: “Whilst the park has been operated on the basis of providing both Static Caravan and Touring Caravan Pitches, [the 1988] Planning Approval clearly gives permission for any type of caravan which complies with the Legal Definition of a Caravan.

“That permission does not restrict the type of unit to either static or touring caravans and does not restrict the layout of the holiday park it is therefore concluded that [the 1988 permission] allows for the siting of any unit which complies with the legal definition of a caravan, and does not restrict the layout or location of the units.

“The applicant therefore seeks confirmation from the LPA to that effect via this Certificate of Lawful (proposed) Use application.”

The application will be considered by park planners at a later date.

Business

Pembrokeshire Lydstep Beach Village development refused

Published

4 days ago

May 7, 2026

Bruce Sinclair - Local Democracy Reporter

A CALL for an extra sign advertising a Pembrokeshire holiday park, adding to exiting unauthorised ones, which planners say would create “visual clutter and intrusion” and a distraction to drivers, has been refused.

In an application to Pembrokeshire Coast National Park, permission was sought, through Lakeside Signs Limited, for an additional sign advertising Haven’s Lydstep Beach Village, near Tenby, the sign proposed for North Lodge where the holiday park joins the main road.

Pembrokeshire County Council’s highways authority raised no concerns regarding the specific location of the sign, but said “there remains a broader concern regarding the cumulative impact of signage along this section of highway,” adding: “The increasing proliferation of signs in this location has the potential to create a visually cluttered environment, which may distract drivers and, in turn, give rise to road safety implications.”

A Park officer report recommending refusal said: “Currently, there are eight flagpoles, one A-frame banner type sign, one pole mounted panel sign, and a further panel sign, located behind the stone wall on the western side of the park’s entrance. None of these advertisements have the benefit of advertisement consent.”

It added: “The increasing number of signs in this location has the potential to create a distraction to drivers, which may result in road safety implications. In addition, the proliferation of signage would create clutter that would result in visual intrusion in this countryside location affecting amenity. As such, the recommendation is to refuse.”

It went on to say: “Whilst it is not deemed that the proposed advertisement would result in harm being caused to the specific special qualities of this area, there are concerns that the display of this advertisement would, along with the remainder of the advertisements, which are unauthorised, result in a proliferation of advertisements, which in turn would cause visual clutter and intrusion.

“This is especially problematic in a countryside location where development is strictly controlled. Should the existing signage be consolidated and rationalised, the Authority may support the proposed sign, however, currently, any additional signage would not be deemed appropriate.”

The application was refused on the grounds that it would, along with the exiting signage, “result in visual clutter and intrusion which would detract from the visual amenity of this countryside location, and would result in potential distraction to drivers, which in turn would rise to road safety implications”.

Business

The Cheesecake Guy store could be coming to Saundersfoot

Published

4 days ago

May 7, 2026

Bruce Sinclair - Local Democracy Reporter

SAUNDERSFOOT’S Coal Building interpretation centre could soon host the third store for Welsh cheesecake business The Cheesecake Guy Ltd, in plans before the national park.

In an application to Pembrokeshire Coast National Park, Craig Taylor of Merthyr Tydfil-based The Cheesecake Guy Ltd seeks a change of use of part of Saundersfoot’s Cambrian Terrace Coal Building interpretation centre to create a small retail unit.

On its website, The Cheesecake Guy says of its business and products: “Established in 2019, The Cheesecake Guy is all about delivering indulgent, handcrafted cheesecake desserts with a twist. While we offer a range of sweet treats, our specialty — and customer favourite — is the signature cheesecake jar.

“Made with quality ingredients and packed with rich, creamy layers, our jars are the perfect dessert for any occasion. Whether you’re treating yourself or sharing with others, The Cheesecake Guy brings a spoonful of happiness to every bite.”

While no supporting statement has yet been published for the Saundersfoot proposal, the application says the scheme would employ two full-time members of staff, operating 10am-6pm Mon-Sat, and 10-5 on Sundays and bank holidays.

It says the proposed site is currently a mixed-use retail and gift shop, having previously been used as office space.

It adds: “This is a space within a building that is still trading, the space we are wanting a change of use was last used by Persimmon Homes as an office space.”

Of the scheme itself it says it will involve “retail sales of pre-prepared desserts and merchandise,” adding there will be “no on-site manufacturing or heavy processing,” with “equipment limited to display fridges and freezers”.

If approved, the Saundersfoot site would be the third outlet for The Cheesecake Guy, with sites in Merthyr, and, more recently, Newport Market.

After that store opened following redevelopment of Newport’s Victorian market, Craig Taylor, of The Cheesecake Guy, said: “We are very excited to be part of the new development in Newport Market alongside some other amazing small businesses.

“We feel this is definitely the next step in the right direction after our Merthyr Tydfil store taking off so well.”

For its Newport site, The Cheesecake Guy says: “We specialise in creating a wide variety of cheesecake desserts that cater to all tastes. Our menu features popular favourites that have won the hearts of many, alongside exciting new creations designed to keep your taste buds satisfied.

“Whether you’re a classic cheesecake lover or an adventurous foodie, we promise a cheesecake experience like no other. Each cheesecake is made with the utmost care, ensuring a rich, creamy texture and a burst of flavour in every slice (or jar!).”

The Saundersfoot proposal will be considered by park planners at a later date.