TOURISM leaders have urged Wales not to follow Scotland’s lead by replicating a “failed” licensing scheme that has “harmed” the industry and created a “thriving black market”.

Last week, the Welsh Government unveiled a tourism bill in the Senedd which, if passed, will create a mandatory licensing scheme for short-term Airbnb-style rentals.

But industry representatives gave a damning account of a similar policy in Scotland, describing the experience since its introduction in 2022 as a “real horror story”.

Marc Crothall, chief executive of the Scottish Tourism Alliance, warned the policy has created “far greater harm than good” as he gave evidence in the Senedd.

He told the economy committee: “When policy is developed without a clear objective and without reliable data, it fails, and Scotland… is that case study.”

Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, pointed to two successful judicial reviews brought against Edinburgh Council. She warned the entire Scottish scheme is “in breach” of the Human Rights Act.

She said: “I would just urge the Welsh Government and policy makers to really take heed of these warnings… don’t do it as Scotland has done it – or you may well end up in court.”

Ms Campbell argued that rather than solving housing problems, the policy was “harming the wrong people and regulating the wrong thing”.

Calling for extreme caution, she criticised the Welsh Government’s projected £75 annual fee for the new licence, labelling it “entirely uncredible” based on Scotland’s experience.

Ms Campbell – who has run a self-catering property for 23 years – told Senedd Members while low fees were promised in Scotland, the reality is they range from £205 to £5,698.

She also dismissed assurances that artificial intelligence and automation would keep administrative costs down as “entirely unrealistic”. “Unless Wales has come up with amazing AI that I’m not aware of, I just don’t think it’s credible,” she said.

She argued the Scottish policy was flawed from the outset because it wrongly tried to solve a housing crisis by regulating tourism, similar to the rationale in Wales.

Ms Campbell warned of the impact on small operators, with 70% of the Scottish self-catering sector made up of women aged over 55 – a figure she wagered was similar in Wales.

“These are the people you’re harming,” she said.

She told the committee the “horror story” in Scotland has seen operators “leaving in droves”.

Mr Crothall added this has led to empty homes, pointing to 230 properties on the Isle of Skye that “remain purely second homes” after their owners opted not to apply for a licence.

Both witnesses stressed they were not against regulation but they argued a separate licensing scheme was disproportionate.

Ms Campbell said the industry supports a national register that includes mandatory health and safety checks but she questioned the need for a second, more costly licensing layer.

“My question is: why do you need licensing on top?” she asked the committee. “If I were a policy maker in Wales, I would wait until I had all the data… it feels premature.”

Giving evidence during an earlier session on November 5, finance secretary Mark Drakeford defended the tourism bill as “good for the industry”. The former First Minister argued the bill would create a level-playing field and reassure visitors.

Prof Drakeford said Wales had learned from Scotland’s “locally based scheme” – which he said had caused confusion – by opting for a simpler, national model.

Union accuses company of ‘refusing to pay monies owed’ – First Cymru says negotiations are ongoing

INDUSTRIAL tensions at First Cymru have intensified as hundreds of bus drivers across South and West Wales prepare for an extended period of strike action in a long-running dispute over pay.

The walkout, due to begin on November 20 and continue until January 21, will affect depots in Swansea, Port Talbot, Bridgend, Carmarthen, Haverfordwest and Ammanford, covering much of the company’s network across the region.

The union Unite says its members are “furious” that the company has refused to backdate pay from the annual pay review and has instead offered what the union called a “£50 bung payment” to encourage drivers to cross picket lines.

Unite general secretary Sharon Graham said: “First Cymru is trying to take industrial relations back to the dark ages with its refusal to pay monies owed, attempts at union-busting to get staff to cross picket lines, and all the while paying some of the lowest wages in the industry.
Unite never stands for such behaviour. First needs to think again about how it is treating its workforce.”

According to Unite, First Cymru currently pays £13.40 an hour, compared with £15 at Cardiff Bus, £15 at Arriva North Wales, £14.44 at Stagecoach, and £14.50 at Newport Transport. The union says the company may soon be the only major operator still applying a lower “new starter rate” for the first year of service.

Unite regional officer Alan McCarthy added: “Driving a bus is a highly skilled job, yet First Cymru drivers are treated like second-class citizens. They’ve reached the end of their tether and are struggling to make ends meet. Unite will be backing them every step of the way.”

The union says drivers are seeking a “reasonable” rise that reflects the cost of living and inflation.

Company response

In response to the ongoing dispute, First Cymru said it remains committed to reaching a resolution and has made what it described as a “fair and sustainable” pay offer in line with other transport operators.

A company spokesperson said: “We are disappointed that Unite has chosen to escalate strike action rather than continue meaningful discussions. We value our drivers and are keen to reach an agreement that recognises their hard work while ensuring the long-term viability of our services for passengers and communities across South and West Wales.”

Background

First Cymru is part of the First Group, which reported profits exceeding £200 million last year, with its chief executive receiving more than £3 million in pay and bonuses. The company operates bus services across South and West Wales, including key routes connecting Swansea, Carmarthen, and Haverfordwest.

Previous industrial action earlier this year caused widespread disruption across the region, with some routes reduced or cancelled entirely.

The latest announcement marks a significant escalation in what has become one of the longest-running industrial disputes in Wales’ transport sector this year.

A SCHEME for 50 homes in a Pembrokeshire town, which was put on hold temporarily last month, has been refused despite a call for it to remain paused.

In an application recommended for refusal at the October, and now November, meetings of Pembrokeshire County Council’s planning committee, South Meadow Homes Ltd sought permission for a development of 50 homes, including a 10 per cent affordable housing contribution, on land north of Gibbas Way, Pembroke.

A report for members said that further financial obligations for the scheme, other than affordable housing units, were sought, comprising of financial obligations to address the shortfall in planned capacity at Henry Tudor School (£41,321.74) and ‘active travel’ improvements (£25,000) respectively.

The financial obligations sought total £66,321.74.

It said that, other than the provision of the affordable housing units, “the applicant has challenged the obligations sought, suggesting that they are not justified and inferring that the development will be unviable if they are to be secured”.

It was recommended for refusal on the grounds of the absence of that obligation and for the need for a full Screening and Appropriate Assessment (AA) in compliance with the Habitats Regulations (2017) in consultation with Natural Resources Wales.

It said, in the absence of this, to grant planning permission would be “unlawful”.

Pembrokeshire County Council recently backed sending a letter to the First Minister, conveying the authority’s “great concern over Natural Resources Wales’ recent river nitrates guidance,” which has “essentially placed a moratorium on certain types of development in Pembrokeshire”.

It says the area which development is required to demonstrate nitrogen neutrality is approximately 75 per cent of the county, including Haverfordwest, Narberth, Pembroke and Pembroke Dock, and amounts to approximately 35 per cent of the council’s future housing land supply.

At the October meeting, members heard the applicants were investigating ways of mitigating the NRW concerns, and “at no time” had they refused the other obligations sought, awaiting an independent valuation of the viability with those conditions.

Members backed the scheme being “paused” while those issues could be addressed, the application returning to the November meeting.

At the November meeting, agent Guy Thomas reiterated there was no refusal to pay a contribution; members hearing the nitrates issue was ongoing.

“All we’re asking is for the opportunity to develop this application on a paused basis,” he said.

He said the cost for providing the affordable units amounted to some £0.75m, adding: “Our grievance is on top of that a late bid has been put in by education and highways, despite assurances it was no longer incumbent.”

He asked: “Why of all the nitrates paused applications have we been singled out for refusal?” he asked, adding: “Work with us to create these 50 new homes; we need you to allow the application to remain paused.”

Moving the recommendation of refusal, Cllr Simon Hancock said the scheme in its current form could not be approved.

Members voted in favour of the recommendation of refusal by 11 votes to one, with one abstention.