PLANS to bring in a tourism tax cleared the first hurdle in the Senedd, with the Welsh Government set to raise the rate to £1.30 per night per person.

Senedd members voted in favour of the tourism tax bill following a debate on April 1 during which ministers announced plans to raise the rates to create an exemption for children.

If the bill completes its passage through the Welsh Parliament, £1.30 per person before VAT could be charged on overnight stays in hotels, B&Bs and self-catering accommodation.

An estimated £264m would be raised if all councils chose to introduce the levy in the decade to 2035, against total costs of £313m to £576m, according to an impact assessment.

Mark Drakeford led the “stage-one” debate on the general principles of the bill, which would also establish a mandatory register of visitor accommodation providers.

Pointing out that visitor levies are common across the world, the finance secretary stressed councils would have an option rather than an obligation to bring in a levy.

The former first minister argued the levy – which he said would cost less than a sausage roll – will be simple, straightforward and fair, with lower rates than in comparable destinations.

On calls for children to be exempt, Prof Drakeford said an amendment would exempt under-18s from the lower band, with the rates each rising by 5p from £1.25 and 75p.

“I must emphasise that any reduction in the broad base of the levy has to be made up by higher charges on those visits that remain in scope,” he said.

He told the Senedd a power for councils to charge a premium on the rates will be retained.

The Conservatives’ Sam Rowlands warned that tourism providers are deeply concerned about the proposed tax, with the sector accounting for around one in eight jobs.

The shadow finance secretary said the Welsh economy can ill afford an annual £47.5m hit, urging ministers to “axe the tax” and opposing the “assault” on the tourism sector.

Mr Rowlands stressed that already under-pressure tourism providers pay into the system through VAT, national insurance, corporation tax and business rates.

While welcoming moves to exempt children from the lower rate, the former council leader raised concerns about education and voluntary organisations being hit by the tax.

His colleague Janet Finch-Saunders described the tax plans as disgusting. “Shame on you,” she said, accusing members on other benches of letting tourism businesses down.

She warned Wales could become a “no-go area” with tourists deterred by the tax, voicing concerns about projected costs of up to £576m over the next decade.

The tourism tax bill was introduced as part of the Welsh Government’s co-operation agreement with Plaid Cymru between 2021 and 2024.

Luke Fletcher, the party’s shadow economy secretary, said: “The reality is that the current way in which we do tourism isn’t sustainable in the long term.”

Pointing to a tourism tax introduced in Manchester in 2023, he told the Senedd: “Wales isn’t acting in isolation here but is moving in step with places both in and outside of the UK.”

His Plaid Cymru colleague Siân Gwenllian argued raising a small levy would improve the visitor experience and services for people living in an area all year round.

Senedd members voted 40-15 in favour of the bill, with one abstention.

The bill now moves to stage two, detailed amendments in the finance committee, before a further amending stage in the Senedd chamber and a stage-four vote on the final version.

Talks underway for rocket factory at former Black Bridge armament depot

SPACE-X, the aerospace company founded by billionaire Elon Musk, is in early talks to establish a major UK base at the former Black Bridge site in Milford Haven, The Herald can reveal.

The disused site—once an armament depot and now within the Celtic Freeport zone—is being considered for a rocket manufacturing and research facility, in what could be one of the biggest investments in West Wales in decades.

Speaking to The Herald via a spokesperson, Mr Musk said: “We’re seriously looking at the Black Bridge site in Milford Haven. It has the right mix of industrial infrastructure, port access, and renewable energy potential. It’s a strong contender for our next-generation SpaceX facility in Europe.”

The location, nestled along the Milford Haven Waterway, already benefits from a deep-water harbour, its own pier, underground tunnels suitable for fuel storage, and proximity to both the Dragon LNG jetty and National Grid connection points. It also lies just 20 minutes by car from the new UK Space Command base being developed at Brawdy.

While no official confirmation has been made, The Herald understands that a delegation of engineers and logistics experts from SpaceX visited the site in early March.

A source close to the project said: “This isn’t just a stunt. The site ticks a lot of boxes, and the Freeport status makes it very attractive. The UK government is aware of the interest.”

However, the project may come with strings attached. Mr Musk hinted that broader cooperation with the UK government—particularly regarding the import of Tesla Semi trucks—could influence the pace and scale of any investment.

“If Tesla Semi trucks could enter the UK market without punitive tariffs, that would help align our supply chains and accelerate sustainable logistics deployment,” he said, adding: “We’re open to sharing our technology and innovation as part of that conversation. It’s a win-win.”

Pembrokeshire County Council said the Local Authority would welcome the investment: “If Mr Musk wants to put a rocket factory here, we’ll find room for him. We’ve got the docks, we’ve got the people, and we’ve got the ambition,” an official spokesperson said.

The local community has already begun speculating about the possible transformation of the area, with suggestions that the disused railway line—currently blocked by a Costa Coffee car park—could be reinstated using a dual road-rail system, allowing trains to pass through on a timed basis.

Welsh Government sources have not confirmed any formal approach, but a spokesperson said: “We welcome all interest in investing in Wales’ space and technology sectors and will continue to support high-quality proposals through our partnership with the UK Space Agency.”

If approved, the facility could bring hundreds of high-skilled jobs to Pembrokeshire, revitalising an area historically reliant on energy and port industries. Given the site’s Freeport designation, SpaceX could benefit from generous tax incentives and streamlined planning permissions.

The timing of the news—just a day before April 1—may raise eyebrows. But insiders insist the proposal is genuine, albeit in early stages.

As one source put it: “It sounds like science fiction—but then again, that’s what people said about reusable rockets.”

A CALL to approve a new campsite close to a Neolithic burial chamber for Pembrokeshire coastal path walkers, at which building works have started without permission, has been approved by county planners.

In an application to Pembrokeshire County Council, Raffale Colella sought partly-retrospective permission for a proposed 12-pitch campsite at Tyr fy Nhad, New Hill, Goodwick.

The application was partly-retrospective as part of a concrete and timber facilities building for the site, near the chambered tomb of Garn Wen, a scheduled ancient monument on land owned by the applicant, has already been built.

A supporting statement through Johnston Planning Ltd said the applicant “seeks to establish a high-quality, all-season facility which will cater primarily for walkers on the Pembrokeshire coastal Path who currently lack any meaningful accommodation of this nature in the locality”.

It added: “The scheme proposes some 12 individual camping pitches set on a north-south axis on the site divided by an access track running the length of the facility with the proposed welfare building set midway along the eastern side of the site.

“In this instance the proposal relates to the establishment of new camp site on the periphery of a recognised settlement.”

It finished: “The provision of temporary visitor accommodation in this location will lead to increased spend in the settlement of Goodwick helping to underpin the service function of that town and having general indirect benefits in terms of social and economic sustainability.

“Ecologically the development proposes significant enhancement measures in terms of planting that will have clear positive impacts in terms of habitat creation and foraging habitat for a range of insect and animal species.”

The scheme was supported by Fishguard and Goodwick Town Council.

An officer report, recommending approval, said: “In regard to visual impact the site is elevated although due to the nature of the development being low level and in relation to landscape planting the development would have an acceptable visual impact on the immediate and wider area.

“In regard to impact on residential amenity, the site would be approximately 20 metres from the nearest dwelling.  The access track is some 15-20 metres from the dwellings to the east, therefore the development would not have a significant impact on the occupants of the dwellings to the south of the site.”

The application was conditionally approved.