Business

Tourism sector ‘bled dry’ by red tape, industry leaders warn

Published

6 months ago

November 14, 2025

TOURISM bosses have warned businesses are being “bled dry” by red tape amid fears new licensing rules will drive small family-owned operators out of the market.

In written evidence to the Senedd, North Wales Tourism urged ministers to “slow down”, warning of a growing regulatory burden and a 30% business downturn in some areas.

Last week, the Welsh Government set out plans to license self-contained, self-catering accommodation on the back of reforms including a tourism tax and mandatory registration.

North Wales Tourism, which represents more than 1,300 businesses, stated its members feel the sector is being “bled dry” to fund other priorities without reinvestment.

The not-for-profit membership organisation warned additional red tape risks driving investment toward competitor destinations such as Ireland, France or Spain.

Appearing before the Senedd economy committee on Thursday November 13, Glenn Evans, who chairs North Wales Tourism, said the industry is already facing a “ream” of challenges.

Mr Evans warned of a lack of data on the sector, which is Wales’ largest private-sector employer, warning the bill has the potential to disrupt the marketplace.

“The consequential effects of it could be profound,” he said. “And of a scale as yet unimaginable or able to quantify as far as the Welsh Government is concerned.”

He agreed consultation and engagement on the tourism bill had been tokenistic.

Mr Evans, who runs hotels in Betws-y-Coed, Conwy, expressed concerns about the 182-day letting threshold to qualify for business rates instead of the higher council tax.

A self-catering operator for more than 25 years, he told the committee: “There is a cumulative impact, just the sheer volume of legislation to get our heads around.”

Mr Evans described layering a licensing scheme for some operators on top of registration as onerous, with some second home owners stopping letting due to the increased burden.

Charlie Reith, a board member of the Short-term Accommodation Association, suggested the tourism bill has been rushed through by Welsh ministers.

“We are concerned the Senedd is being asked to approve something without a clear evidence base and time to scrutinise,” he said.

He described the Welsh Government’s acknowledgement that it has been a “particularly busy time” for the tourism industry as a “huge understatement”.

David Chapman, executive director of UKHospitality Cymru, told the committee the industry has been “beset” by regulations over the past five years.

Mr Reith, who is also an Expedia group director, said: “If you’re operating a self-catering business, you’re facing much more regulation than you have done in previous years.”

He said operators face applying for planning permission, 100% increased council tax, removal of small business rates and tax changes for furnished holiday lets.

He told the committee: “Cumulatively, that is potentially thousands of pounds in additional costs… so any additional requirements or fees have to be seen within that context.”

Asked about a £75 annual licence fee, Mr Reith questioned the credibility of the indicative figure and described a £4.5m forecast of compliance costs as an underestimate. A previous evidence session heard fees in Scotland range from £205 to £5,698.

Mr Reith warned too many elements, such as details of the licence renewal process, are left to future regulations rather than set out within the bill providing certainty.

On enforcement, he suggested powers of entry and inspection set out in the bill were “too intrusive” and called for reassurance through guidance about how the powers will be used.

Mr Reith argued against plans to potentially make booking platforms criminally liable for ensuring thousands of operators display correct registration details.

Councils warned new licensing rules – which will come into force in 2029, if passed – could impact Wales’ ability to host major events by deterring casual hosts from renting out rooms.

In written evidence, the Welsh Local Government Association said small-scale providers usually absorb demand during the Six Nations and Royal Welsh Agricultural Show.

Council leaders warned informal hosts may simply withdraw their properties from the market if faced with more compliance costs, putting a squeeze on precious accommodation space.

Business

Pembroke Power Station National Grid shutdown power plans

Published

15 hours ago

May 1, 2026

Bruce Sinclair - Local Democracy Reporter

A CALL to site specialist diesel generators at Pembroke Power Station to help keep the lights on in the event of a National Grid shutdown has been lodged with county planners.

In a screening application to Pembrokeshire County Council, RWE Generation UK PLC, through Ove Arup & Partners Ltd, wants to site up to six containerised diesel generators, diesel storage tank(s) and electrical connections at Pembroke Power Station, Pwllcrochan, near Pembroke.

The application site is within the site of the existing Pembroke Power Station, a combined-cycle gas turbine (CCGT) station which began commercial operation in September 2012, with a gross consented capacity of about 2,199 megawatts electric (MWe), replacing the previous oil-fired power station which operated for almost 30 years and was decommissioned in 1999.

A supporting statement says, subject to confirmation, it is considered to comprise permitted development, the scheme “a standalone plant, with its own fuel supply, capable of starting up, operating and shutting down independently from the power station”.

It adds: “It is required only in an emergency to maintain plant status and keep the power station operationally ‘ready’ in the event of a total or partial shutdown of the National Grid system. It is not required for the normal operation of the power station and does not extend its capacity, which remains as already consented, therefore it is not considered a change or extension.”

On need, it says it is mandatory that all electricity generators of over a megawatt have to adopt a new minimum standard of asset resilience; power stations “must be capable of restoring demand on the National Grid electricity transmission system in the event of a total or partial shutdown of the National Grid system”.

“The Power Station does not currently meet this new asset resilience standard, therefore new back-up power, control philosophy and on-site services that support site critical systems enabling the power station to remain ready to operate must be implemented.

“RWE is required to install a new enhanced emergency site auxiliary solution (diesel generators and diesel storage tanks) at the power station for resilience against the failure of the interconnected electricity distribution network into which it is normally connected in order to satisfy the Grid Code requirements by the mandated implementation deadline of December 31, 2026.

“RWE will make operational and fuelling provision, within its new resilience design at Pembroke power station of up to 120 hours, in order to provide capability to a slightly enhanced standard known to be valued by the National Energy System Operator (‘NESO’) in certain emergency network scenarios.”

It says construction is hoped to start in July 2026, lasting approximately nine to 12 months, the main part across the summer months.

The call will be considered by county planners at a later date.

Business

Pembrokeshire St Brides Castle biomass and solar scheme

Published

19 hours ago

May 1, 2026

Bruce Sinclair - Local Democracy Reporter

PLANS for a green energy scheme at a Pembrokeshire former country house which is now holiday apartments have been given the go-ahead.

In an application to Pembrokeshire Coast National Park, HPB Ltd, through agent Acanthus Holden Architects, sought permission for a biomass boiler plant and installation of 16 rows of solar panels to the south of the tennis courts, St Brides Castle, St Brides, along with the removal of two tennis courts, two polytunnels, two sheds and relocation of a container.

Marloes and St Brides Community Council: Supporting

An officer report recommending approval said: “St Brides Castle. Listed Grade II* is a former country house (now holiday apartments) just south-west of the small settlement of St Brides.

“The house and its listed ancillary buildings stand prominently within a large grade-II-registered park and garden. The development site lies immediately south of the registered asset, outside of its boundary.”

It added: “Although in a sensitive location, the proposed scheme is well-screened, utilising an existing hedged enclosure. The proposed panels do not protrude over the hedge line, the proposed extra planting to the south and west providing further screening. The proposed building, also well-screened, is of traditional design, proportions and materials.”

The application was conditionally approved by park planners.

Business

Welsh business confidence rises as firms buck UK trend

Published

1 day ago

April 30, 2026

Tom Sinclair

Wales records strongest year-on-year growth of any UK nation or region, according to Lloyds Business Barometer

WELSH business confidence rose in April as firms reported growing optimism about the wider UK economy, new figures show.

The latest Business Barometer from Lloyds found that confidence among businesses in Wales rose by eight points to 38% during the month.

That was despite overall UK business confidence falling by 11 points to 44% in April.

The survey found Welsh firms’ confidence in their own trading prospects remained unchanged at 46%, while optimism about the wider economy climbed 16 points to 30%.

When combined, those figures gave Wales a headline confidence reading of 38%, up from 30% in March.

Wales also recorded the largest year-on-year confidence growth of any UK nation or region and was the only area to report both year-on-year and month-on-month growth.

A net balance of 34% of businesses in Wales said they expected to increase staff numbers over the next year, up nine points on the previous month.

Looking ahead, Welsh firms identified investment in their teams as the main target area for growth, with 48% citing training and staff development.

Other priorities included introducing new technology, such as AI or automation, at 42%, and evolving products or services at 40%.

The Business Barometer, which surveys 1,200 businesses each month, has been running since 2002 and is used as an early indicator of UK economic trends.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated.

“While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year.

“UK businesses are resilient and adept at deploying strategies to defend growth in uncertain conditions. Over the past month, we’ve seen them opt for flexibility wherever possible.

“They’re building contingency into their short and medium-term plans, rather than expecting a rapid return to normal. Protecting margins has become more important.

“That means tougher cost scrutiny and a greater focus on balancing growth with profitability.

“In this environment, as with other recent market disruptions, we continue to observe that sustainable success comes from discipline, resilience and clarity about what really drives long-term value.”

Nathan Morgan, area director for Wales at Lloyds, said: “Wales is bucking the UK-wide trend when it comes to business confidence, increasing during April against the national trend.

“This confidence is the result of Welsh firms’ ongoing focus on investment to protect their position against future disruption.

“At Lloyds, we’ll continue to nurture this recent momentum of growth by working with businesses across the nation to equip them with the financial tools they need.”

Across the UK, firms’ confidence in their own trading outlook fell six points to 54%, while optimism in the wider economy dropped 17 points to 33%.

The East Midlands was the most confident UK nation or region in April at 53%, followed by London at 51% and the West Midlands at 49%.