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Wales tourism industry criticises lack of support in Welsh Government budget

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THE WALES TOURISM ALLIANCE (WTA) has welcomed some elements of the Welsh Government’s latest budget but has raised concerns over what it describes as a lack of financial support for the tourism sector.

The WTA has praised the additional funding allocated to health and social care, as well as the introduction of a £1 bus ticket pilot for under-21s. It highlighted that many young people in Wales start their careers in tourism and hospitality, and this initiative will make public transport more accessible, helping their earnings go further.

However, the alliance is disappointed by the continued lack of investment in tourism, an industry that contributes approximately £3.8 billion annually to the Welsh economy. It is calling for more funding for visitor infrastructure and greater promotion of Wales as a destination.

Instead, the sector is facing what it describes as “punitive” policies from the Welsh Government, including the requirement for holiday lets to be occupied for at least 182 days a year to qualify for business rates and the proposed visitor levy.

Concerns over tourism policies

The 182-day rule, introduced to ensure that holiday lets contribute to the local economy rather than sitting empty, has been met with opposition from tourism businesses. Many in the sector argue that meeting such occupancy levels is unrealistic in certain areas, particularly in rural Wales, where seasonal tourism is dominant.

The proposed visitor levy, which would allow local authorities to impose a per-person, per-night charge on overnight stays, is another source of concern. The Welsh Government argues that the levy, which is common in other tourist destinations worldwide, will generate up to £33 million annually to fund local infrastructure and tourism services.

However, the WTA and business owners fear that the charge will discourage visitors and place further financial pressure on the industry at a time when businesses are already struggling with rising costs. Ashford Price from the National Showcaves Centre has described the proposal as “utter insanity,” warning that it could add up to £35 to a family’s weekly stay and significantly impact tourism-dependent communities.

Political reaction

Andrew RT Davies, leader of the Welsh Conservatives, has strongly opposed the visitor levy, calling it “punitive” and warning that it will make visiting Wales more expensive during a cost-of-living crisis.

The Welsh Government has defended its policies, arguing that they are necessary to balance economic growth with sustainability and fairness to local communities. Mark Drakeford, in his role as finance secretary, has highlighted that such levies are standard practice in many international tourist destinations and provide a reliable revenue stream for reinvesting in tourism-related infrastructure.

Business response

Business organisations have expressed a mixed reaction to the budget. While they welcome some measures, such as the continuation of the 40% business rates relief for the retail, leisure, and hospitality sectors, they have called for more targeted support. Industry leaders want improvements to the planning process, greater business support for growth, and further reforms to the business rates system to help smaller businesses.

With tourism contributing significantly to the Welsh economy, industry representatives argue that the government must do more to protect businesses from financial pressures and ensure the long-term sustainability of the sector.

The WTA has urged the Welsh Government to reconsider its approach and work with the industry to create policies that support rather than hinder tourism in Wales.

 

Business

Wolfscastle spa earns prestigious AA recognition

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WOLFSCASTLE COUNTRY HOTEL and Spa in Pembrokeshire is celebrating national recognition after its luxury spa was included in the prestigious AA Recommended Spa Awards.

The accolade highlights the hotel’s commitment to delivering high-quality wellbeing experiences, exceptional service, and first-class facilities.

The AA Recommended Spa status is awarded to venues that provide an outstanding guest experience, combining professional expertise, premium treatments, and a relaxing environment. The recognition places Wolfscastle among a select group of leading spa destinations across the UK.

Grace, Levi and Bethan, full-time spa therapists at the award-winning Wolfscastle Spa.
Hot stone massage in the Wolfscastle Country Hotel & Spa treatment room.

The spa, which has been open for nine years, has established itself as one of Pembrokeshire’s top wellness destinations, welcoming both hotel guests and day visitors seeking relaxation in a tranquil countryside setting.

Facilities include hydrotherapy experiences, thermal suites, and dedicated relaxation areas, alongside a wide range of luxury treatments designed to help guests unwind and recharge.

Bethan, Spa Manager at Wolfscastle Country Hotel & Spa, said: “We’re absolutely delighted to be recognised by the AA as a Recommended Spa. The team here work really hard to make sure every guest feels relaxed, welcomed and properly looked after from the moment they arrive.

“To receive this recognition is very special for us and reflects the care and effort our therapists put into every treatment.”

The award further strengthens the hotel’s reputation as one of West Wales’ leading hospitality destinations, offering award-winning dining, boutique accommodation, and premium wellness experiences.

Guests can enjoy spa days, overnight breaks, and tailored treatments throughout the year.

For more information or to book, visit www.wolfscastle.com.

The hotel is also marking a significant milestone this year, with owner Andrew Stirling celebrating 50 years at the helm.

 

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Business

Pembroke South Quay boat shed expansion plans submitted

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A PADDLEBOARDING and canoeing company’s call for an extension to a boat shed at Pembroke’s South Quay, below its historic castle, has been submitted to county planners.

In an application to Pembrokeshire County Council, G Booth of Paddle West CIC, through agent James Dwyer Associates, seeks permission for an extension to the stone-built boathouse, adjacent to the cliff on South Quay fronting the Mill Pond, Pembroke.

A supporting statement says: “It is intended to erect a single storey ‘lean-to’ building, or ‘shed’ for the storage of boats, such as canoes and kayaks, and related equipment, on a vacant space adjacent to the existing stone-built boathouse.”

It adds: “The boathouse and the intended adjacent boat storage shed is located, as is to be expected, in close proximity to water, the Mill Pond. The Mill Pond is the main area of activity for Paddle West, a Community Interest Company, providing boating activities, kayaking, canoeing and paddle boarding, frequently for young people and families.”

It goes on to say: “It is intended that the structure would be lightweight, erected on the exiting hard standing. The ‘shed’ would be used for the storage of boats and related equipment.”

With regard to the historic setting, it adds: “Although the stone-built boathouse appears not to be listed, it is recognised that the walls above are listed and together they are a piece.

“Accordingly, through form and external materials proposed, timber cladding and profile sheet roofing, the aim is to ensure that the structure would be subservient and muted and not detract or compete with the visual aesthetic of the boathouse or historic walls. In effect the addition would blend into the background.”

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

The boathouse is sited near to the new Henry Tudor Centre in South Quay, which is due to open in Spring 2027.

The centre, expected to receive around 30,000 visitors a year, will tell the story of Henry Tudor, son of Pembroke, his Welsh ancestry and his impact on our national story, Welsh culture and our wider British heritage.

The restored derelict South Quay buildings will also house a new library and community café, and a healthcare, social services and supported employment facility in the adjoining premises.

 

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Business

Pembrokeshire hospitality rates relief scheme backed

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A WELSH Government-funded scheme to provide rates relief for hospitality businesses has been backed by senior Pembrokeshire councillors.

A report for members of Pembrokeshire County Council’s Cabinet at their March meeting said: “Welsh Government has introduced the Food and Drink Hospitality Rates Relief, this relief is aimed at eligible businesses in Wales in the food and drink hospitality sector for example, pubs, restaurants, cafes, bars and live music venues.

“The aim of the relief is to support eligible businesses to manage continued cost pressures. The relief will apply to all eligible occupied properties by offering a discount of 15 per cent on non-domestic rate bills for the period April 1 to March 31, 2027. The relief is capped at £110,000 per business across Wales.

“As this is a temporary measure, Welsh Government is providing the relief by reimbursing local authorities that use their discretionary relief powers under Section 47 of the Local Government Finance Act 1988.”

It concluded: “The food and drink hospitality rates relief 2026-27 requires the local authority to adopt a discretionary scheme [as outlined] and in accordance with the criteria and conditions specified in the guidance issued by Welsh Government.

“It is proposed that Cabinet resolve to adopt [the scheme] which can be applied to administer the relief. Welsh Government will reimburse local authorities for the relief provided in line with their guidance via a grant under section 31 of the Local Government Act 2003.”

Members backed the recommendation.

All eligible businesses must apply for this relief by the March 31, 2027, and an application form will be available on the council’s website from the April 1.

The maximum cash value of the rates relief allowed, across all properties in Wales occupied by the same business should not exceed £110,000. Businesses claiming the relief must declare that the amount being claimed does not exceed those limits.

 

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