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Welsh Government’s tourism tax plans get green light

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THE SENEDD passed plans for a £1.30-a-night tourism tax in parts of Wales from 2027.

Senedd Members voted 37-13 for the tourism tax bill, which will see people charged £1.30 each, plus VAT, for stays in hotels, B&Bs and self-catering accommodation.

People staying in hostels and campsites would pay 75p per person per night, with under-18s exempt from the lower rate of the tax which would be introduced in 2027 at the earliest.

The tax would raise around £33m a year if implemented across the country but the 22 councils in Wales will be given powers to decide whether to introduce a levy locally.

Only two councils, Cardiff and Anglesey, – have so far indicated plans to bring in a levy but other authorities had yet to make a decision or had “no plans” to introduce a tax.

A register of visitor accommodation providers operating in Wales will also be established by the bill, laying the groundwork for licensing plans set to be brought forward separately.

Proponents argue the levy will ensure visitors contribute to the cost of services with revenue reinvested, while detractors warn the tax will put tourists off and damage Wales’ economy.

Tourism taxes are commonplace on the continent and, closer to home, Scottish councils will gain similar powers next year, while Manchester introduced a visitor charge in 2023.

Leading a debate before the key vote on July 8, Mark Drakeford told the Senedd: “By passing this bill, we will give councils the choice to introduce a modest additional charge which would be reinvested to support a thriving, sustainable tourism industry.”

The finance secretary said the visitor levy will be the first local tax for more than 500 years to have been designed and made in Wales, marking an important step for devolution.

Prof Drakeford said the Welsh Government wants to ensure the pressures and opportunities of tourism are fairly balanced, with visitors contributing to infrastructure and services.

Finance minister Mark Drakeford
Finance minister Mark Drakeford

The former First Minister pointed to evidence “from Iceland to New Zealand” of the revenue generated contributing significantly to challenges without deterring tourism.

He argued the bill would strengthen communities and build democratic accountability, putting tourism in Wales on a new and sustainable footing.

But Sam Rowlands, the Conservatives’ shadow finance secretary, described the bill as “bad for Wales and bad for the Welsh tourism sector”.

Conservative MS Sam Rowlands
Conservative MS Sam Rowlands

Warning the economy is in dire straits, Mr Rowlands said the tourism tax will impact jobs and harm the economy as he pointed out that the industry itself was broadly opposed.

‘Out of touch’

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

Luke Fletcher, Plaid Cymru’s shadow economy secretary, reiterated his party’s support, saying: “There is a genuine opportunity here for us to create a sustainable tourism sector that works with both our communities and businesses.”

Plaid Cymru MS Luke Fletcher
Plaid Cymru MS Luke Fletcher

Mr Fletcher added: “The very same arguments were happening when they were looking to introduce a tourism levy in Barcelona and in other places, so I do really believe we will look back at this as a positive step forward for our communities.”

Labour’s Jenny Rathbone criticised the Conservatives for “being completely out of touch”, with thousands visiting Cardiff for the Oasis concert and communities picking up the costs. She asked: “Why should poor people rather than visitors have to pay?”

Closing the debate, Prof Drakeford agreed, accusing the Tories of “catastrophising” a “modest measure” which he compared to less than the cost of a cup of coffee.

 

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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