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Conservative calls to ditch Welsh tourism tax rejected

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THE SENEDD roundly rejected Conservative calls to ditch plans for a tourism tax. 

Laura Anne Jones led a debate on the Welsh Government’s plans to roll out a visitor levy – a small fee for visitors staying overnight in tourism accommodation – from 2027. 

The Tory MS warned the tax could make people think twice about holidaying in Wales, which would have a significant impact on tourism and hospitality businesses. 

Ms Jones also raised concerns about the threshold for self-catering properties to qualify for business rates increasing from 70 to 182 days. 

Calling for a reduction to 105 days, she warned the target has been difficult to achieve for many self-catering businesses, leaving owners at risk of 300% council tax premiums. 

Ms Jones argued Visit Wales should be made independent of the Welsh Government. 

The shadow culture secretary said: “The current Visit Wales system is not working and is struggling to attract people to Wales.” 

Ms Jones, who represents South East Wales, told the chamber a tourism barometer published in February showed visitor numbers in decline since 2022. 

Raising concerns about a significant hit to the Welsh economy, she said international visitor spending was £515m in 2019, which tumbled to £391m in 2022. 

She accused the Welsh Government of “attacking” the tourism sector, saying ministers have nothing to offer besides empty words and ill-thought-out policies. 

Luke Fletcher, for Plaid Cymru, stressed the importance of sustainability, raising concerns about communities becoming ghost towns in off-seasons. 

The shadow economy secretary backed plans for a tourism tax because it would raise additional money to maintain attractions, streets and services. 

Mr Fletcher argued a small levy would not deter visitors, raising Barcelona as an example, and he called for any money raised to be ring fenced for tourism. 

He suggested a tourism levy will be rolled out elsewhere in the UK, with Manchester having brought in a £1-a-night charge which raised about £2.8m in its first year from April 2023.

The South Wales West MS urged the Welsh Government to restore rates relief for tourism businesses from 40% to 75% to take the pressure off the sector. 

Peter Fox said tourism businesses in his Monmouth constituency, which are separated by mere miles from competitors in England, want a level playing field across the border. 

He warned: “Businesses are facing the impending tourism tax, additional waste charges, the highest business rates in the UK, and reduced non-domestic rates support. 

“All of these are causing real concern and anxiety to so many businesses that are already finding things really difficult at the moment.” 

Mr Fox, who led Monmouth council for more than a decade, said local authorities will use revenue raised by a tourism tax to meet other pressures such as social care and health. 

“That’s what will happen, guaranteed,” he told the Senedd. 

Janet Finch-Saunders accused Labour and Plaid Cymru of “smothering” Welsh tourism with rules and regulations, which are having a detrimental impact on the industry. 

The Aberconwy MS described plans for a tourism tax as a “horrible” idea dreamt up in the “ludicrous” cooperation agreement between the two political parties. 

Sam Rowlands, a fellow Tory, warned a tourism tax will make Wales less competitive within the UK and send an unwelcome message to would-be visitors. 

But Plaid Cymru’s Cefin Campbell said tourist levies are commonplace around the world, pointing to Croatia, Greece, the Netherlands, France, Italy, Spain and the Caribbean. 

“They haven’t crippled tourism in any of these countries,” said the Mid and West Wales MS. “Instead they’ve empowered destinations to offer a better visitor experience.” 

Responding to the debate on May 22, Jeremy Miles said the best way to protect the sector is to ask visitors to make a very modest contribution to the costs of tourism. 

Wales’ economy secretary said the letting criteria for self-catering properties was changed to ensure owners are making a fair contribution and maximise the use of properties. 

Mr Miles, who came into post in March, highlighted the Welsh Government’s tourism strategy as he outlined his vision for a sustainable tourism sector.

Accusing the Tories of running Wales down, he said: “I do deplore the way in which we heard some speakers … compare Wales unfavourably with other tourist destinations.” 

MSs voted 13-33 against the Tory motion, with Plaid Cymru’s amendments also falling. The motion as amended by the Welsh Government was agreed, 24-22. 

 

Business

Tŷ Hafan celebrates opening of larger new shop in Cardigan

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Long-serving supporters Diane and Emily Lloyd cut the ribbon as the children’s hospice charity begins a new chapter in the town

TY HAFAN has officially opened its newly relocated charity shop in the centre of Cardigan, marking the latest chapter in its long-standing relationship with the town and surrounding communities.

Diane Lloyd and her daughter Emily, both dedicated supporters of Tŷ Hafan Children’s Hospice, cut the ceremonial ribbon at the new premises at 25 High Street on Friday, July 10.

Diane has worked for the charity for 22 years, while Emily has volunteered for Tŷ Hafan for the past 11 years.

The charity currently supports 22 families caring for children and young people with life-shortening conditions in the Ceredigion Penfro Senedd constituency. A further 17 families continue to receive bereavement support.

Maree Thomas, regional sales manager for Tŷ Hafan, thanked the community, volunteers and businesses that helped make the relocation possible.

She said: “I’d like to thank everyone who joined us on this exciting occasion as we opened our newly relocated Cardigan Tŷ Hafan store.

“We’ve been present on this high street for over 30 years, with the first few years spent in a tiny cabin and the last 22 years in the smaller shop just down the road.

“None of this would have been possible without the wonderful Lloyd family and other local supporters, who were among the first fundraisers for Tŷ Hafan.”

She also thanked the shop’s volunteers, landlord Andrew, local companies, donors, customers and supporters who helped with the move.

“Your support means that we can walk alongside every family that needs us,” she said.

“Our shops play an important part in raising funds and awareness of the hospice. Right now, we are only supporting one in ten families who have a child whose life will be short.

“Our ambition is that when a child’s life will be short, no family should have to live it on their own.”

During the past year, the Cardigan community has contributed around 3,000 volunteer hours, donated 2,000 bags of goods and purchased approximately 3,000 items from the charity.

The move to larger premises will allow the shop to display and sell more donated goods, helping to raise additional funds for hospice care.

Shop manager Diane said: “I would like to thank the local community for its massive support over the past 30 years, right from when we started in a little cabin in the market to our lovely new shop on the High Street.

“I’d also like to thank my absolutely amazing volunteers. Some have been with me for more than ten years and some have been here since the shop opened. Without them, we simply could not do what we do.”

Emily said volunteering had given her the opportunity to help families while also being part of a friendly and welcoming team.

She said: “I love volunteering for Tŷ Hafan. It’s great fun, it keeps me busy and you know you’re making a difference for local families with children who have life-shortening conditions.

“We’re always looking for more volunteers, so anyone who would like to join us can email [email protected] or call 02920 532255.”

Musician Mark Watkin Price also performed during the opening celebrations, singing and playing guitar for visitors and supporters.

The new shop is expected to begin trading seven days a week and includes a dedicated donation drop-off area at the rear of the premises.

 

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Call to expand nature retreat with more lodges, a sauna and padel courts

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A CALL to extend a Pembrokeshire “boutique nature retreat destination” previously featured in the Sunday Times with further holiday cabins, a mobile sauna and padel courts has been lodged with county planners.

In an application submitted to Pembrokeshire County Council, Paul Cleaver of Wilder Retreats, through agent Hayston Developments & Planning Ltd, seeks permission for two holiday cabins, a mobile sauna and the conversion and extension of an existing building to padel courts and changing rooms to form phase 2 of the existing Wilder Retreats holiday cabins and complex, on land at the former agricultural/ forestry works depot, Solbury Road, Tiers Cross.

Padel is a racquet sport that combines elements of tennis and squash.

A supporting statement said of Wilder Retreats, an ecotourism destination located on 20 acres of rewilded land: “Since opening, the business has established itself as one of Wales’ leading boutique nature retreat destinations — demonstrating how sensitive, high-quality tourism development can work in harmony with landscape, ecology and local economy.

“The business has attracted national press coverage from publications including the Sunday Times and Coast Magazine.”

It said the existing business “was conceived from the outset as an ecotourism model — one that funds and enables genuine environmental restoration through sustainable commercial activity, working towards ecological targets set by Kite Ecology including native woodland planting, wildflower meadow creation and habitat corridor development”.

The Phase 2 developments proposed are: two additional A-frame cabins in addition to the existing six; Wilder Woodland Sauna, a commercial woodland sauna; and Wilder Padel Club, two covered LTA (Lawn Tennis Association) compliant padel courts with associated clubhouse facilities, that re-uses a redundant shed and yard in the client’s ownership.

The two additional A-frame cabins will be operated by Wilder Retreats Ltd as an extension of the existing accommodation business. Wilder Woodland Sauna and Wilder Padel Club will each operate as independent businesses under separate limited companies.

“Together, the three proposals reinforce one another: the cabins bring more guests to the site; the sauna and padel give those guests — and local residents — more reasons to visit and to stay longer,” the statement says, adding: “All three operate independently but collectively strengthen the economic, social and environmental case for this site as a model of sustainable rural tourism.”

The site was previously lawfully occupied by the applicant’s tree works consultancy and land management business until this subsequently relocated a few years ago.

Although the site has since been occupied by a motorcycle business, that business has been given notice to vacate but will trade until early 2027.

The application proposal is supported by a letter from Tennis Wales, the national governing body for Padel, one of the fastest growing sports in the country, which fully supports the principle of creating two padel courts, saying: “Creating more Padel courts, which can be used throughout the year, is critical to sustaining this growth.

“These new facilities will enable more adults and juniors to enjoy, compete and experience the game of Padel in line with Tennis Wales Vision and Mission which is to see ‘Padel opened up’.”

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

 

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Plans for new development agency for Wales: A “key driver” or “just another quango”?

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A NEW development agency will “improve productivity”, according to a Welsh Government minister – but opponents have dubbed it “yet another quango”. 

Enterprise, connectivity, and energy minister Adam Price outlined his plans in the Senedd on Tuesday July 7.

He said: “Less than three weeks into this administration, we announced the most ambitious economic goal in Wales in two decades; namely, halving Wales’s productivity gap with the UK within ten years.

“If we are going to meet that challenge, we need a fundamental change in how we approach economic development in Wales. The proposed new agency will be a key driver in achieving that change.”

Mr Price previously faced criticism on his plans when he raised the proposal in the Senedd last month.

Reform’s shadow minister for economy and transport, Jason O’Connell, then described the idea of a new agency as “another unnecessary bureaucratic quango”.

Speaking in the Siambr, Mr Price said: “Creating a new development agency is a crucial part of driving the positive changes in productivity that we need. But it needs to be a much wider, collective effort across Wales.

“We need – collectively and collaboratively – to look at the current landscape and work with local and regional partners to create an economic development system where roles are clear and we’re all working together as one team for the people of Wales.” 

As set out in Plaid’s 100 day plan, the party will be establishing an “expert panel” to advise the development of the new agency, which he confirmed will be chaired by Jonathan Lewis.

He said: “The appointment of the chair of the panel to advise on the remit and operating model of the new agency is a key stepping stone in the journey towards making Wales the best place in the United Kingdom to start a business, to grow a business, and to invest in a business.”

The minister told colleagues he would confirm the full membership of the panel in the coming weeks.

Jason O’Connell, Reform’s shadow minister for economy and transport
Jason O’Connell, Reform’s shadow minister for economy and transport

Reform’s Jason O’Connell told the Siambr that it was a “shame” MSs were once again debating “the creation of yet another quango”.

Noting the importance of scrutiny for “better government”, Mr O’Connell accused Plaid Cymru of denying the chamber that scrutiny. 

He said: “If taxpayers are funding this new development agency, then they deserve transparency. Minister, you say you want the new agency to provide support, advice and guidance, but you’ve said nothing about how.

“So, let me give you a suggestion. Decades ago, Welsh Labour scrapped the Welsh Development Agency, WDA1. They promised a simpler, better support mechanism for Welsh businesses. But instead, we’ve got a patchwork of organisations: Business Wales for advice, the Development Bank of Wales for finance, and now what we’re proposing is WDA2 to sit on top. The current system is too confusing.”

Reform’s shadow economy minister then claimed Business Wales returns £18 of economic value for every £1 that’s invested. He also questioned Mr Price on why he has no plans to bring Business Wales into the new WDA to make things “less confusing and more accessible”.

Responding, Mr Price said his government “absolutely” wants to make sure businesses can access a “streamlined level of support”.

Mr O’Connell also asked about attracting inward investment to Wales, noting the “real test” is whether that investment becomes “rooted across Welsh communities up and down the country”. 

He said: “In the last WDA, Wales welcomed major international employers, created thousands of jobs, and celebrated new investment, as short-lived as it was.

“But those companies moved production elsewhere when the government reduced the support. They took high-paying jobs with them, because their supply chains were never truly anchored in Wales, and it was easy to do so.”

The Pontypridd Cynon Merthyr MS drew attention to the Irish economy where “inward investors are expected to work with local suppliers, strengthen domestic supply chains, and create opportunities for already-established local businesses in that country to grow alongside them”.

Mr Price noted his agreement with the shadow minister on the need to be strategic about inward investment.

He said: “Foreign direct investment has a role in any economy, but we need to actually focus it on those areas that will be more embedded – through supply chains, as he suggests – in the Welsh economy that actually build on our existing and possible future strengths.”

Labour’s spokesperson for employment, equalities, and economic transformation, Shav Taj
Labour’s spokesperson for employment, equalities, and economic transformation, Shav Taj

Labour’s Shav Taj said her party shares Plaid Cymru’s ambition for a “new type of Wales, a reinvigorated Wales, a Wales that attracts more investment and ultimately creates good jobs”. 

The Labour spokesperson for economic transformation told the Siambr that what the people of Wales want to know is what “meaningful difference” these internal arrangements will make.

She also drew attention to the work of the previous Labour government in ensuring a strong economy for Wales, including setting up the Development Bank of Wales and hosting the Wales investment summit.

Ms Taj said it’s the “practical” questions that are important and pressed Mr Price on when the new agency will get staff, whether they will be new staff or shuffled from other departments, and how much the new agency will cost the Welsh public.

She also pushed for confirmation on the “constitutional status” of the agency, notably whether the Senedd will need to legislate “at some point” for it to get going.

Ms Taj added: “Ultimately, this is about jobs, jobs for the future, high-skilled jobs, and young people in Wales are really watching to see whether or not your government is going to do any better than we did.”

Mr Price responded: “They [development agencies] have played a central role in virtually anywhere that you can think about in the nations and regions that have closed an economic gap, and few of those nations or regions that have had one have got rid of them.

“We’re one of the few exceptions. There may be a reason for that, and I suggest it’s because they are an incredibly valuable tool.

“Do you need to get the design right? Absolutely. The right relationship in terms of how arm’s length it is from government but how close it is from a government – getting that right is absolutely important and it’s one of the key questions that we’ve already done a lot of thinking on, and we will continue as we go through the design process.”

Welsh Conservative MS Andrew RT Davies
Welsh Conservative MS Andrew RT Davies

Pen-y-Bont Bro Morgannwg MS, Andrew RT Davies, expressed the Conservatives support for “the principle” but said there was “too much blank space” around the new agency.

He asked Mr Price for a timeframe in which he expects to bring the organisation into existence, whether it be 12 months, two years, or by the end of this Senedd term

Mr Davies also questioned the cost and said: “I’m not going to ask you for every pound, shilling and pence, but can you give an indication on what your thinking is of the type of budget that you will make available to the organisation?”

He continued: “When we look at the old WDA, it had a complete offer, from building industrial sites, gaining the planning permission and promoting foreign direct investment.

“Does this organisation, in your mind, need to do all that, or will it be more specific in what it does about promoting Wales as a destination for inward investment? And when we look at the organisation, are we thinking of an organisation that will look like Natural Resources Wales with a remit letter, or will this be a unique organisation that hasn’t been seen in the Welsh public landscape before?” 

Mr Price confirmed the new agency will be a statutory body, and said he plans to bring forward legislation “fairly soon”.

He also noted the Welsh Government’s ambition for the new agency to be operational “as soon as possible”, but said he could not provide a specific date.

 

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