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Airbnb holds ‘major reservations’ over Welsh tourism bill

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AIRBNB has warned property owners could check out of the Welsh tourism market for good over “rushed” licensing rules which could cost hosts up to an estimated £15m.

The tech company gave evidence to the Senedd economy committee on Thursday November 20 on the Welsh Government’s plans to license self-contained, self-catering accommodation.

Carl Thomson, UK public policy manager for Airbnb, described licensing plans as a “blunt and unnecessary tool” that is disproportionate to any risks that might be faced by guests.

“In our view, there’s no evidence that a licensing regime is needed in Wales,” he said. “Or that it will do anything other than cause immense harm to local accommodation providers, reduce consumer choice and push up costs for guests.”

In written evidence, Airbnb estimated the bill could cost Welsh hosts between £4.5m and £15m in reduced income, with “immeasurable” impacts on the wider Welsh economy.

Mr Thomson told the committee experience of short-term letting regulation from around the world shows licensing schemes do not solve the problem they are intended to fix.

He said: “Of course, safety matters but it’s important to remember that problems are exceptionally rare. Our data… tells us accommodation in Wales actually has a much stronger safety record compared with other parts of the UK and internationally.”

Mr Thomson explained that of the hundreds of thousands of inbound trips booked to Wales through Airbnb in 2024/25 – only 39 safety incidents were reported, equating to 0.004%.

He added that none of the incidents related to carbon monoxide, fire safety nor electrical safety, with only a single reported gas-related concern.

He told Senedd Members: “If the purpose of this legislation is to ensure the health, safety and quality of the sector, there’s real questions about whether it’s necessary or needed.”

Fiona MacConnacher, head of public affairs for the UK and Ireland at Booking.com, supported proportionate regulation but suggested the bill had been rushed through.

Warning of unintended consequences, she said: “We’re talking about Welsh businesses here and if we affect those businesses, we don’t just affect those self-catering businesses: we affect the restaurants, the pubs, the shops.”

Barbara Griffiths, who runs North Wales Holiday Cottages, warned government officials have told her they have not had time to add sectors beyond self-contained, self-catering lets.

Barbara Griffiths, who runs North Wales Holiday Cottages
Barbara Griffiths, who runs North Wales Holiday Cottages

“It’s rushed and I feel it should be delayed,” she said.

Ms Griffiths argued the bill would not create a level-playing field, as claimed by ministers, because it does not cover other types of visitor accommodation.

Mr Thomson warned booking intermediaries would become legally liable for the accuracy of registration numbers provided by accommodation providers under the bill. He told the committee the first Airbnb learned about this aspect was when the bill was published.

He said: “That approach is inconsistent with established practice elsewhere in the UK and around the world. There’s real technical problems with how that could work in practice.”

Mr Thomson added: “We strongly disagree with the suggestion that criminal liability should be placed on platforms, and the senior officers of those companies, for actions which they’ve not participated in, for which they have no control and for which they’re unaware.”

He called for amendments to ensure liability rests with the accommodation provider.

He argued registration plans previously passed by the Senedd can achieve all of the same aims without the cost, friction and bureaucracy that layering licensing on top brings.

Fiona MacConnacher, head of public affairs for the UK and Ireland at Booking.com
Fiona MacConnacher, head of public affairs for the UK and Ireland at Booking.com

Ms MacConnacher emphasised that most providers are micro-businesses rather than “large corporate machines”, with a majority of hosts aged over 50 and female.

She echoed Mr Thomson’s warning about a cumulative pressure on operators who face a tourism tax, registration, business rates changes and now a licensing scheme. “Rightly or wrongly, they might feel as if they are not welcome to run their business,” she warned.

Mr Thomson said: “There’s real potential for this to make Wales an outlier, not only in terms of being overly regulated but harming its attractiveness and competitiveness.”

Airbnb criticised the proposed “apply-and-wait” model where yearly applications for licenses are manually checked, calling it “outdated” and warning it would leave businesses in limbo.

Calling for renewals to take place every three to five years to provide certainty for the sector, Mr Thomson advocated a more automatic “apply-and-go” system.

 

Business

Bid to convert office space into chocolate factory, salon and laundrette

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A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners

In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.

A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.

For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”

It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.

The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.

“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.

“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.

“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”

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

 

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Business

First Minister criticised after ‘Netflix’ comment on struggling high streets

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Government announces 15% support package but campaigners say costs still crushing hospitality

PUBS, cafés and restaurants across Wales will receive extra business rates relief — but ministers are facing criticism after comments suggesting people staying home watching Netflix are partly to blame for struggling high streets.

The Welsh Government has announced a 15% business rates discount for around 4,400 hospitality businesses in 2026-27, backed by up to £8 million in funding.

Announcing the package, Welsh Government Finance Secretary Mark Drakeford said: “Pubs, restaurants, cafés, bars, and live music venues are at the heart of communities across Wales. We know they are facing real pressures, from rising costs to changing consumer habits.

“This additional support will help around 4,400 businesses as they adapt to these challenges.”

The announcement came hours after Eluned Morgan suggested in Senedd discussions that changing lifestyles — including more time spent at home on streaming services — were contributing to falling footfall in town centres.

The remarks prompted political backlash.

Leader of the Welsh Liberal Democrats, Jane Dodds, said: “People are not willingly choosing Netflix over the high street. They are being forced indoors because prices keep rising and wages are not.

“Blaming people for staying at home is an insult to business owners who are working longer hours just to survive.”

Industry groups say the problem runs deeper than consumer behaviour.

The Campaign for Real Ale (CAMRA) welcomed the discount but warned it would not prevent closures.

Chris Charters, CAMRA Wales director, said: “15% off for a year is only the start. It won’t fix the unfair business rates system our pubs are being crushed by.

“Welsh publicans need a permanent solution, or doors will continue to close.”

Across Pembrokeshire, traders have repeatedly told The Herald that rising energy bills, wage pressures and rates — rather than a lack of willingness to go out — are keeping customers away.

Several town centres have seen growing numbers of empty units over the past year, with independent shops and hospitality venues reporting reduced footfall outside the main tourist season.

While ministers say the relief balances support with tight public finances, business groups are calling for wider and longer-term reform.

Further debate on rates changes is expected later this year.

 

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Pub rate relief welcomed but closures still feared

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CAMRA warns one-year discount is only a sticking plaster as many Welsh locals face rising bills

A BUSINESS rates discount for Welsh pubs has been welcomed as a step in the right direction — but campaigners warn it will not be enough to stop more locals from shutting their doors.

The Campaign for Real Ale (CAMRA) says the Welsh Government’s decision to offer a 15 per cent reduction on business rates bills for the coming year will provide short-term breathing space for struggling publicans.

However, it believes the move fails to tackle deeper problems in the rating system that continue to pile pressure on community pubs across Wales, including in Pembrokeshire and Carmarthenshire.

Chris Charters, Director of CAMRA Wales, said: “Today’s announcement from the Finance Secretary that pubs will get 15% discount on their business rates bills is a welcome step.

“However, many pubs still face big hikes in their bills due to the rates revaluation which could still lead to more of our locals in Wales being forced to close for good.

“15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.”

He added: “Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”

Mounting pressure on locals

Under plans announced by the Welsh Government, pubs will receive a temporary discount on their rates bills for the next financial year.

But CAMRA argues that many premises are simultaneously facing sharp increases following the latest revaluation, which recalculates rateable values based on property size and trading potential.

For some smaller, rural venues, especially those already operating on tight margins, the increases could wipe out the benefit of the relief entirely.

Publicans say they are also contending with rising energy costs, higher wages, supplier price hikes and changing customer habits since the pandemic.

In west Wales, several long-standing village pubs have either reduced their opening hours or put their businesses on the market in the past year, with landlords warning that overheads are becoming unsustainable.

Community role

Campaigners stress that the issue goes beyond beer sales.

Pubs are often described as the last remaining social spaces in small communities — hosting charity events, sports teams, live music and local groups.

In parts of rural Pembrokeshire, a pub can be the only public meeting place left after the loss of shops, banks and post offices.

CAMRA says supermarkets and online retailers enjoy structural advantages that traditional pubs cannot match, making it harder for locals to compete on price.

The organisation is now calling on ministers to introduce a permanently lower business rates multiplier for pubs, rather than relying on short-term discounts.

Long-term reform call

CAMRA wants whoever forms the next Welsh administration to commit to fundamental reform of the rating system, arguing that pubs should be recognised as community assets rather than treated like large commercial premises.

Without change, it warns, the number of closures is likely to accelerate.

Charters said: “This is about protecting the future of our locals. Once a pub shuts, it rarely reopens. We can’t afford to lose any more.”

For many communities across west Wales, the fear is simple: temporary relief may buy time — but it may not be enough to save the local.

 

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