Welsh Government’s tourism tax plans move closer with rates set to rise

Published

8 months ago

April 1, 2025

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.

First wind turbine components arrive as LNG project moves ahead

Published

9 hours ago

December 4, 2025

Tom Sinclair

THE FIRST ship carrying major components for Dragon LNG’s new onshore wind turbines docked at Pembroke Port last week, marking the start of physical deliveries for the multi-million-pound renewable energy project.

The Maltese-registered general cargo vessel Peak Bergen berthed at Pembroke Dock on Wednesday 26^th November, bringing tower sections and other heavy components for the three Enercon turbines that will eventually stand on land adjacent to the existing gas terminal at Waterston.

A second vessel, the Irish-flagged Wilson Flex IV, has arrived in Pembroke Port today (Thursday) carrying the giant rotor blades.

The deliveries follow a successful trial convoy on 25 November, when police-escorted low-loader trailers carried dummy loads along the planned route from the port through Pembroke, past Waterloo roundabout and up the A477 to the Dragon LNG site.

Dragon LNG’s Community and Social Performance Officer, Lynette Round, confirmed the latest movements in emails to the Herald.

“The Peak Bergen arrived last week with the first components,” she said. “We are expecting another delivery tomorrow (Thursday) onboard the Wilson Flex IV. This will be blades and is currently showing an ETA of approximately 03:30.”

The £14.3 million project, approved by Welsh Ministers last year, will see three turbines with a combined capacity of up to 13.5 MW erected on company-owned land next to the LNG terminal. Once operational – expected in late 2026 – they will generate enough electricity to power the entire site, significantly reducing its carbon footprint.

The Weather conditions were favourable for the arrival of the Wilson Flex IV, which was tracking south of the Smalls at midnight.

The abnormal-load convoys carrying the components from the port to Waterston are expected to begin early next year, subject to final police and highway approvals.

A community benefit fund linked to the project will provide for residents in nearby Waterston, Llanstadwell and Neyland.

Further updates will be issued by Dragon LNG as the Port of Milford Haven as the delivery programme continues.

Photo: Martin Cavaney

Business

Cardiff Airport announces special Air France flights for Six Nations

Published

13 hours ago

December 4, 2025

Tom Sinclair

Direct services to Paris-Charles de Gaulle launched to cater for Welsh supporters, French fans and couples planning a Valentine’s getaway

CARDIFF AIRPORT and Air France have unveiled a series of special direct flights between Cardiff (CWL) and Paris-Charles de Gaulle (CDG) scheduled for February 2026.

Timed to coincide with two major dates — the Wales v France Six Nations clash on Saturday 15 February and Valentine’s weekend — the flights are designed to offer supporters and holidaymakers an easy link between the two capitals.

For travelling French rugby fans, the services provide a straightforward route into Wales ahead of match day at the Principality Stadium, when Cardiff will once again be transformed by the colour, noise and passion that accompanies one of the tournament’s most eagerly awaited fixtures.

For Welsh passengers, the additional flights offer a seamless escape to Paris for Valentine’s Day, as well as opportunities for short breaks and onward travel via Air France’s wider global network.

Cardiff Airport CEO Jon Bridge said: “We’re thrilled to offer direct flights to such a vibrant and exciting city for Valentine’s weekend. Cardiff Airport is expanding its reach and giving customers fantastic travel options. We’ve listened to passenger demand and are delighted to make this opportunity possible. There is more to come from Cardiff.”

Tickets are already on sale via the Air France website and through travel agents.

Special flight schedule

Paris (CDG) → Cardiff (CWL):

13 February 2026: AF4148 departs 17:00 (arrives 17:30)
14 February 2026: AF4148 departs 14:00 (arrives 14:30)
15 February 2026: AF4148 departs 08:00 (arrives 08:30)
15 February 2026: AF4150 departs 19:40 (arrives 20:10)
16 February 2026: AF4148 departs 08:00 (arrives 08:30)
16 February 2026: AF4150 departs 16:30 (arrives 17:00)

Cardiff (CWL) → Paris (CDG):

13 February 2026: AF4149 departs 18:20 (arrives 20:50)
14 February 2026: AF4149 departs 15:20 (arrives 17:50)
15 February 2026: AF4149 departs 09:20 (arrives 11:50)
15 February 2026: AF4151 departs 21:00 (arrives 23:30)
16 February 2026: AF4149 departs 09:20 (arrives 11:50)
16 February 2026: AF4151 departs 17:50 (arrives 20:20)

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

Published

20 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.