Business

Pembrokeshire Senedd Members slam ‘rural economy damaging’ tourism tax

Published

7 months ago

July 9, 2025

Local fears grow as new law paves way for overnight stay levy across Wales

PEMBROKESHIRE Senedd Members Paul Davies and Samuel Kurtz have strongly condemned the Welsh Government’s new tourism tax legislation, warning it could deal a serious blow to the county’s fragile visitor economy.

Despite their opposition, the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was passed by the Senedd on Tuesday (July 8), granting councils the power to impose a charge of up to £1.30 per person, per night on overnight stays from 2027.

The law, passed with the support of Plaid Cymru, allows local authorities to introduce the levy at their discretion. While councils like Cardiff, Anglesey and Gwynedd have expressed interest, others — including Pembrokeshire — have not signalled any intention to adopt the scheme.

***Welsh Conservatives: Sam Kurtz MS and Paul Davies MS***

‘Ignored by Cardiff Bay’

Welsh Conservative MS for Preseli Pembrokeshire Paul Davies said the Welsh Government had “ignored the concerns of our tourism industry” and risked undermining a vital sector in the region.

“Operators in Pembrokeshire have made it very clear that they do not support this policy, and yet the Welsh Government has pushed ahead with a Bill that risks damaging one of Wales’ most important economic sectors,” Mr Davies said.

“Tourism is a huge part of the Pembrokeshire economy, and the sector has had a turbulent few years – facing additional regulations, thresholds and now this levy. The Welsh Government should be focussing on removing burdens and helping the industry build back post-Covid, rather than finding ways to squeeze the sector more.”

‘Labour clobbering small businesses’

Carmarthen West and South Pembrokeshire MS Samuel Kurtz echoed the criticism, accusing Labour of being out of touch with rural Wales.

“Tourism businesses are the beating heart of our local economy, but instead of backing them, Labour do what Labour do best and decide to clobber them with yet another tax,” Mr Kurtz said.

“An additional £1.30 nightly charge might sound small to out-of-touch politicians in Cardiff Bay, but on the ground, it will make Wales less competitive, deter visitors, and put jobs at risk.

“You just can’t compare Wales to cities such as Barcelona or Venice who have introduced a tourism tax. Our tourism industry is far less mature, and those cities have introduced the tax to actively deter visitors.

“Welsh Ministers should be concentrating on extending the visitor season, increasing the number of overseas visitors to Wales, and showcasing what we have to offer. Instead, they choose doom, gloom and extra tax.”

Mixed views from businesses and tourists

Commenting on the latest news on the tourism tax plans in Wales, William McNamara, Chief Executive of Bluestone said: “With the Visitor Levy Bill now set to be passed by the Senedd, we are entering a new chapter for tourism in Wales. While we now have greater clarity on the framework and rates [£1.30 per person, per night for most accommodation] many of our original concerns remain.

“Wales risks becoming less competitive, particularly for families and budget-conscious travellers, as this levy introduces an additional cost not seen across large parts of England.

“The flexibility for local authorities to raise the charge in future adds further uncertainty for businesses already navigating economic pressures.

“While the current administration of Pembrokeshire County Council, where Bluestone is situated, has publicly stated that it will not implement the visitor levy during its present term, we must remain vigilant and be prepared for potential changes following the next local elections in 2027.

“Tourism is vital to communities like Pembrokeshire, and at Bluestone, we’re committed to offering sustainable, high-quality Welsh breaks. We support investment in local services, but any levy must be fair, transparent, and come with a clear reinvestment strategy to keep Wales welcoming, accessible, and competitive.”

Under the new legislation, hostel and campsite visitors will pay 75p per person per night, while other accommodation types will be subject to the full £1.30 rate. Children under 18 will be exempt from the charge at hostels and campsites.

The Welsh Government says the levy could generate up to £33 million annually to support tourist infrastructure — including toilets, visitor centres, footpaths and beach facilities — if adopted nationwide.

But critics argue it risks pushing tourists away at a time when many rural areas are still struggling to recover.

Sammi Rogers, who runs Aran Hufen Ia ice cream shop in Bala, said the levy might influence people to “just go to a different area and not come to Wales.”

Nicky Williamson, policy lead at the Professional Association of Self-Caterers UK issued a statement to The Herald, saying: “We’re incredibly disappointed by the decision to press ahead with the tourism tax in Wales.

“Despite countless conversations and heartfelt warnings from across the tourism industry, the Welsh Government has pushed through a policy that risks doing real harm to the businesses working hard to keep Wales welcoming and vibrant.

“For self-caterers, many of whom are small, family-run enterprises, this feels like yet another blow at a time when visitor numbers are already under pressure, with official Welsh Government figures showing a 29% drop.

“By their own assessment, this decline is expected to result in job losses. It’s frustrating to see decisions like this made without truly listening to those on the ground. Wales should be doing everything it can to encourage visitors, not making it harder.”

However, Bethan Evans, who operates a caravan park in Gwynedd, supported the idea in principle. “You can tell when the tourists come – roads are full, toilets are full, there’s more rubbish. Somebody should pay for that, it just makes sense,” she said.

Others, like English tourist Rachel Freeman, felt the measure was unfair. “We already contribute an awful lot to the country by coming here and paying into the local economy,” she said.

National backlash growing

An official impact assessment by the Welsh Government suggests the tax could result in as many as 390 job losses, depending on how widely it is adopted and how visitors respond.

Opposition has also come from trade bodies including the Welsh Tourism Alliance and Mid Wales Tourism, with concerns that the money raised will not be ring-fenced for tourism-related projects.

Meanwhile, Welsh Conservative leader Andrew RT Davies has vowed to scrap the tax if his party wins the 2026 Senedd election.

Despite the backlash, Finance Secretary Mark Drakeford defended the law as a historic move, calling it “the first local tax for more than 500 years to have been designed in Wales.”

He argued: “It is reasonable for visitors to contribute towards infrastructure and services integral to their experience, as they do in so many other parts of the world.”

But for many in Pembrokeshire’s tourism sector, the legislation represents yet another burden — and its implementation, if adopted locally, could have long-term consequences for an already stretched rural economy.

Welsh Government’s view

Finance Secretary Mark Drakeford said: “Visitor levies are used successfully all over the world. They ensure the pressures and opportunities tourism bring are balanced fairly between visitors and residents. We want the same for Wales.

“The levy is a small contribution that will make a big difference to our communities, helping to maintain and enhance the very attractions and services that make Wales such a wonderful place to visit and live.

“By voting to back this measure, Wales is joining many other worldwide destinations which already benefit from similar levies.”

The Welsh Government said that key elements of the Bill include:

Giving local authorities the choice to introduce a visitor levy in their area, but only after consulting with their local communities.
Ensuring all funds raised are retained and reinvested back into the local area to support tourism.
The levy is set at 75p per person per night for adults staying in hostels and campsites and at £1.30 per person per night for all visitors staying in other types of accommodation.
Under 18s are exempt from paying the levy when staying in hostels or campsites.
2027 is the earliest possible introduction date.

The Bill also introduces a national statutory register for all visitor accommodation providers in Wales. It will be free to join and will provide valuable data and insight about the size and scale of the sector across Wales.

The register will support ongoing policy development and decision-making at all levels of government. It will also ensure that the public are better informed about how property is being used in their areas.

The Welsh Government highlighted that it is investing heavily in tourism, including a £50m Wales Tourism Investment Fund and dedicated funding for weather-proofing grants.

Business

Cardiff airport investment under fire as Qatar link stalls despite £400m public backing

Published

3 days ago

January 30, 2026

Tom Sinclair

Ministers admit no meetings with airline that once received Welsh Government marketing support

THE FUTURE of Cardiff Airport’s long-haul ambitions has been thrown back into the spotlight after Welsh ministers admitted they have not personally met Qatar Airways executives — despite the airline once operating the airport’s flagship international route and benefiting from a publicly funded marketing partnership.

The admission has prompted fresh questions over whether taxpayers are getting value for the almost £400 million of public money that has been invested in the airport since it was bought by the Welsh Government in 2013.

South Wales Central Conservative MS Andrew RT Davies said the lack of direct engagement was “unacceptable”, arguing that ministers had failed to prioritise restoring one of Wales’ most important global connections.

In written questions to Economy Minister Rebecca Evans and Transport Minister Ken Skates, he asked how many times they had met Qatar Airways since August 2024.

Both confirmed they had not held any meetings.

Ms Evans said commercial negotiations are led by the airport’s executive team and added she would “very much welcome” the route’s return when the time is right.

Mr Skates said responsibility for the airport sits outside his portfolio and declined to comment further while discussions are ongoing.

Flagship route

Qatar Airways launched daily flights between Cardiff and Doha in 2018 to considerable fanfare.

At the time, ministers described the service as “transformational”, linking Wales directly to one of the world’s biggest aviation hubs and providing one-stop access to more than 150 destinations across Asia, Australia, Africa and the Middle East.

Business groups said the route would make Wales more attractive to inward investors and exporters, while tourism chiefs hoped it would bring higher-spending international visitors.

To promote the link, the Welsh Government entered into a two-year marketing partnership with the airline, understood to be worth around £1 million, aimed at raising Wales’ profile overseas and encouraging travel through Cardiff.

The agreement funded joint advertising and promotional campaigns in international markets.

However, the route operated for less than two years before being suspended at the start of the Covid-19 pandemic in 2020.

While Qatar Airways has since restored flights to other UK airports including Heathrow, Manchester and Birmingham, Cardiff remains the only former UK destination where services have not resumed.

***Press event celebrating two years of Qatar flying from Cardiff to Doha in 2019***

Value for money questions

The situation has reignited debate over whether the public investment delivered lasting benefits.

Critics say the combination of direct airport funding and marketing support should have secured a more sustainable presence from a global carrier.

They question whether the advertising partnership represented value for money if the route ultimately disappeared and has yet to return.

***Passengers got given complimentary cupcakes in 2019***

For some observers, the absence of Qatar has become a yardstick for judging the success of government ownership.

After more than a decade and hundreds of millions of pounds in loans and support, they argue, Wales should be seeing stronger international connectivity rather than retreat.

Supporters counter that the pandemic severely disrupted aviation worldwide and that rebuilding routes takes time, particularly for smaller regional airports.

They also note that commercial airline negotiations are typically handled by airport management rather than ministers.

***A Qatar plane heading of Doha in 2019***

Passenger recovery

Cardiff Airport was purchased by the Welsh Government for £52m to prevent its closure and safeguard jobs.

Since then it has required repeated financial support packages to maintain operations and invest in infrastructure.

Passenger numbers remain below pre-pandemic levels, and the airport continues to compete with Bristol, which offers a far wider range of routes and attracts many Welsh travellers across the border.

Industry analysts say long-haul services such as Doha are especially important because they connect regions directly to global markets without relying on London hubs.

Without them, airports risk being seen as secondary or feeder operations.

Political pressure

Mr Davies said the government needed to show greater urgency.

“Senedd ministers have ploughed almost £400 million into Cardiff Airport since they bought it – yet they haven’t even bothered to meet with a major airline to re-establish a crucial international link,” he said.

***Andrew RT Davies is asking awkward questions about spending on Cardiff Airport***

“When that level of public money is involved, people expect leadership.

“Getting flights back should be a priority.”

The Welsh Government maintains it remains supportive of restoring the route and says talks with Qatar Airways are continuing through airport executives.

But for many travellers and businesses, the key question remains simple: after years of investment and promises, when will Wales once again have a direct long-haul link to the world?

Until Qatar — or another global carrier — returns, critics say, that question will continue to hang over Cardiff Airport’s future.

Business

Croeso awards return to celebrate Pembrokeshire’s tourism stars

Published

3 days ago

January 30, 2026

Tom Sinclair

Colin Jackson to host major industry night as entries open for 2026 event

THE CELEBRATION of Pembrokeshire’s tourism and hospitality sector is officially underway as the Visit Pembrokeshire Croeso Awards return for 2026 after a two-year break.

The prestigious awards, designed to recognise businesses that go above and beyond to deliver exceptional visitor experiences, are back with what organisers describe as “fresh energy and renewed ambition”.

This year’s ceremony will be hosted by Welsh sporting legend Colin Jackson CBE, the Olympic silver medallist and former world champion hurdler, who will act as compère for the evening.

The awards will take place on Thursday (Oct 29), bringing together leading hotels, attractions, restaurants and tourism operators from across the county for a night of celebration and recognition.

Seventeen categories are open for entry, including Best Hotel, Best Place to Eat, Accessible & Inclusive Tourism Award and Rising Star, highlighting both established operators and emerging talent within the industry.

Organisers say the event is not only about rewarding excellence, but also about developing the next generation of hospitality professionals.

At the heart of this year’s ceremony is a partnership between Pembrokeshire College and the Celtic Collection. Students will gain hands-on experience in staging a live, large-scale event, working alongside front-of-house teams and industry specialists to plan and deliver the evening.

The collaboration aims to give young people practical skills while supporting the long-term future of the county’s tourism sector.

Emma Thornton, Chief Executive of Visit Pembrokeshire, said: “We are very excited to be launching our 2026 Croeso Awards building on our 2024 event through working in partnership with Pembrokeshire College and the Celtic Collection.

“We’ve taken the deliberate step to launch three months earlier than in previous years. By doing so we hope this will encourage more entries, making it much easier for businesses and organisations to submit entries well ahead of the busy spring and summer season.

“If you haven’t entered the Croeso Awards before, please make this the year that you do.”

Applications are now open via the Croeso Awards pages on the Visit Pembrokeshire website and close on Monday (March 31). The shortlist will be announced on July 1.

Support sessions to help businesses complete applications will be held every Wednesday throughout February at the Bridge Innovation Centre in Pembroke Dock.

Tickets and a limited number of sponsorship opportunities are also available.

Photo caption:

Colin Jackson CBE will host the 2026 Croeso Awards when they return this October (Pic supplied).

Business

Welsh business confidence falls sharply in January

Published

4 days ago

January 30, 2026

Tom Sinclair

BUSINESS confidence in Wales fell by twenty points in January, according to the latest Business Barometer from Lloyds Bank, amid weakening optimism about both trading conditions and the wider economy.

The headline confidence figure for Wales dropped to 32%, down from 52% in December 2025. Firms’ confidence in their own trading prospects fell even more steeply, down thirty points to 38%, while optimism about the wider economy declined by eight points to 27%.

Despite the downturn in sentiment, Welsh businesses reported stronger hiring intentions. A net balance of 44% of firms said they expect to increase staff numbers over the next twelve months, up twenty-four points on the previous month.

Looking ahead, businesses in Wales identified their main priorities for growth over the next six months as developing new products or services (43%), investing in staff training and skills (40%), and introducing new technology (33%).

The Business Barometer surveys around 1,200 businesses across the UK each month and has been running since 2002, providing early indicators of regional and national economic trends.

UK outlook mixed

Across the UK as a whole, business confidence slipped by three points in January to 44%. While firms’ confidence in their own trading prospects increased by seven points to 59%, optimism about the wider economy fell sharply, down fourteen points to 28%.

London recorded the highest confidence level of any UK nation or region at 68%, followed by Northern Ireland at 66% and the West Midlands at 65%.

Sector picture

Retail confidence edged up slightly in January, rising by two points to 49%. Confidence in the service sector increased by one point to 42%, marking the first rise since the summer. Construction confidence, however, fell back after a particularly strong improvement in December.

Nathan Morgan, area director for Wales at Lloyds, said the figures reflected ongoing economic pressures but highlighted some positive signals.

“Business confidence has reduced this month, reflecting wider economic headwinds,” he said. “However, hiring intentions are up sharply, with Welsh businesses planning to invest in people at scale, showing a real commitment to growth despite the challenges.”

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said firms were entering the year with confidence in their own trading prospects, even as concerns about the broader economy persisted.

“The first rise in confidence in the services sector in seven months is encouraging, given the sector’s central role in supporting UK economic activity,” she said.