Welsh Government’s tourism tax plans move closer with rates set to rise

Published

1 year ago

April 1, 2025

PLANS to bring in a tourism tax cleared the first hurdle in the Senedd, with the Welsh Government set to raise the rate to £1.30 per night per person.

Senedd members voted in favour of the tourism tax bill following a debate on April 1 during which ministers announced plans to raise the rates to create an exemption for children.

If the bill completes its passage through the Welsh Parliament, £1.30 per person before VAT could be charged on overnight stays in hotels, B&Bs and self-catering accommodation.

An estimated £264m would be raised if all councils chose to introduce the levy in the decade to 2035, against total costs of £313m to £576m, according to an impact assessment.

Mark Drakeford led the “stage-one” debate on the general principles of the bill, which would also establish a mandatory register of visitor accommodation providers.

Pointing out that visitor levies are common across the world, the finance secretary stressed councils would have an option rather than an obligation to bring in a levy.

The former first minister argued the levy – which he said would cost less than a sausage roll – will be simple, straightforward and fair, with lower rates than in comparable destinations.

On calls for children to be exempt, Prof Drakeford said an amendment would exempt under-18s from the lower band, with the rates each rising by 5p from £1.25 and 75p.

“I must emphasise that any reduction in the broad base of the levy has to be made up by higher charges on those visits that remain in scope,” he said.

He told the Senedd a power for councils to charge a premium on the rates will be retained.

The Conservatives’ Sam Rowlands warned that tourism providers are deeply concerned about the proposed tax, with the sector accounting for around one in eight jobs.

The shadow finance secretary said the Welsh economy can ill afford an annual £47.5m hit, urging ministers to “axe the tax” and opposing the “assault” on the tourism sector.

Mr Rowlands stressed that already under-pressure tourism providers pay into the system through VAT, national insurance, corporation tax and business rates.

While welcoming moves to exempt children from the lower rate, the former council leader raised concerns about education and voluntary organisations being hit by the tax.

His colleague Janet Finch-Saunders described the tax plans as disgusting. “Shame on you,” she said, accusing members on other benches of letting tourism businesses down.

She warned Wales could become a “no-go area” with tourists deterred by the tax, voicing concerns about projected costs of up to £576m over the next decade.

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

Luke Fletcher, the party’s shadow economy secretary, said: “The reality is that the current way in which we do tourism isn’t sustainable in the long term.”

Pointing to a tourism tax introduced in Manchester in 2023, he told the Senedd: “Wales isn’t acting in isolation here but is moving in step with places both in and outside of the UK.”

His Plaid Cymru colleague Siân Gwenllian argued raising a small levy would improve the visitor experience and services for people living in an area all year round.

Senedd members voted 40-15 in favour of the bill, with one abstention.

The bill now moves to stage two, detailed amendments in the finance committee, before a further amending stage in the Senedd chamber and a stage-four vote on the final version.

AIDAsol cruise ship makes second visit to Fishguard

Published

3 hours ago

July 23, 2026

Tom Sinclair

THE GERMAN cruise ship AIDAsol returned to Fishguard today, bringing hundreds of passengers to north Pembrokeshire.

The large vessel was clearly visible from homes overlooking Fishguard Bay after arriving for what is understood to be her second visit to the town.

Passengers were expected to travel ashore by tender before exploring Fishguard, Goodwick and tourist destinations across Pembrokeshire.

Cruise ship visits provide a welcome boost for local shops, cafés, transport providers and visitor attractions, with organised excursions often taking passengers to locations including St Davids and the Pembrokeshire Coast National Park.

AIDAsol is operated by German cruise company AIDA Cruises and is instantly recognisable because of the distinctive eye and red lips painted across her bow.

The ship measures more than 250 metres in length and can accommodate more than 2,000 passengers, as well as hundreds of crew members.

Her arrival attracted attention from residents, with the impressive vessel photographed from several vantage points around Fishguard and Goodwick.

The visit comes during the busy summer tourism season and offers businesses another opportunity to showcase the area to overseas visitors.

AIDAsol was due to remain off the coast while passengers enjoyed their time in Pembrokeshire before continuing to the next destination on her itinerary.

Impressive arrival: AIDAsol pictured in Fishguard Bay today (Pic: Herald reader)

Business

Port of Milford Haven named among UK’s best workplaces for women

Published

4 hours ago

July 23, 2026

Tom Sinclair

Recognition secured for second consecutive year as women now hold 42% of management roles at the Port

THE PORT OF MILFORD HAVEN has been named among the UK’s Best Workplaces for Women for the second year running.

The organisation has been placed within the top 100 large employers on the 2026 list, compiled by workplace culture body Great Place To Work UK.

The recognition is based largely on feedback from female employees, who highlighted flexible working, access to time off, employee benefits and the Port’s approach to safety and sustainability.

The Port said its position on the national list had improved by 45 per cent compared with last year.

One employee said: “The flexibility I’m given and the freedom to bring my own ideas make me feel valued and trusted.

“Being part of the Port is something I’m genuinely proud of, and I’m excited about the opportunities ahead to grow and build my career here.”

Another praised the organisation’s support for work-life balance and mental health.

Women currently make up 31 per cent of the Port’s overall workforce and 42 per cent of employees in management positions.

The Port said this compared favourably with the wider ports sector, where women account for an average of 19 per cent of the workforce and 23 per cent of managerial roles.

HR director Vidette Swales said the organisation was proud to have retained the recognition.

She said: “We are incredibly proud to be a workplace where women can thrive, develop their careers and bring their whole selves to work.

“Creating an inclusive culture is not just the right thing to do. It strengthens our organisation by ensuring diverse perspectives are heard, valued and reflected in everything we do.

“We are committed to providing opportunities for growth, supporting work-life balance and fostering an environment where women feel empowered to succeed at every stage of their careers.”

Port employees are also involved in Pembrokeshire’s SPARC initiative, which was established in 2023 to introduce secondary school pupils to career opportunities in industries where women have traditionally been underrepresented.

Its activities focus particularly on careers within the maritime and energy sectors.

Ms Swales added: “Our staff are proud to be involved in the SPARC initiative, engaging with girls in secondary schools through a range of activities and raising awareness of the opportunities available.”

Benedict Gautrey, managing director of Great Place To Work UK, said the organisations included on the list were making a difference to employees’ everyday working lives.

He said: “What matters most is that this recognition comes directly from women working in these organisations, who tell us they feel supported, valued and able to grow.

“Congratulations to the Port of Milford Haven for creating an environment where inclusion is clearly felt in practice.”

The Port retained its Great Place to Work accreditation for a third consecutive year at the end of 2025.

Photo caption: Female employees from across the Port of Milford Haven celebrate the organisation’s inclusion among the UK’s Best Workplaces for Women for a second year.

Business

British Business Bank-backed firms to deliver ‘£300m boost’ to Welsh economy

Published

1 day ago

July 22, 2026

Tom Sinclair

Finance provided during 2025/26 is expected to help create 1,300 jobs and support more than 17,000 existing roles across Wales

SMALL businesses receiving British Business Bank-backed finance are forecast to generate an additional £600m in turnover and contribute £300m to the Welsh economy.

The figures, published in the government-owned development bank’s latest annual Impact Report, relate to businesses newly supported during the 2025/26 financial year.

Around 1,400 smaller businesses in Wales received bank-backed finance for the first time during the year.

Over the lifetime of that finance, the businesses are expected to create approximately 1,300 additional jobs while supporting a further 17,200 existing roles.

The forecast £300m increase in economic output represents the gross value added generated from the additional £600m in business turnover.

The bank said one of the main drivers of its activity in Wales had been the £130m Investment Fund for Wales, which was launched to improve access to finance for businesses at different stages of development.

The fund recently passed its second anniversary and has so far invested £37m through more than 102 investments involving 93 Welsh businesses.

Those investments have supported companies across a range of industries while also attracting additional private-sector funding into Wales.

Recent deals include a £3.5m investment in industrial services company Advantiv Limited, the fund’s largest equity investment to date.

The funding is intended to support the company’s expansion, the opening of additional locations across the UK and investment in operational innovation.

The British Business Bank is also supporting a new £6.5m innovation cluster in the Cardiff Capital Region.

The initiative aims to increase equity investment in high-growth businesses operating within the UK Government’s eight priority Industrial Strategy sectors.

Jess Phillips-Harris, director for Wales within the bank’s Local Growth Team, said the report demonstrated the effect that access to finance could have on businesses and communities.

She said: “This year’s Impact Report shows the real difference that British Business Bank support is making to businesses and communities across Wales.

“As the bank’s support continues to grow, we’re backing more businesses across a wider range of sectors, while bringing more private investment into Wales alongside our own funding.

“This is helping innovative companies develop new technologies, manufacturers expand their operations and entrepreneurs turn ambitious plans into long-term growth.”

She added that programmes including the Investment Fund for Wales, Start Up Loans and angel investment initiatives were helping companies grow while supporting skilled employment and local economies.

Across the UK, the British Business Bank supported £9.4bn of finance for smaller businesses during 2025/26.

The bank estimates that the finance will generate £19.7bn in additional turnover, £8.8bn in gross value added and 39,000 additional jobs over its lifetime.

Approximately 87% of the businesses newly supported during the year were based outside London.

The economic impact figures are forecasts based on the expected long-term performance of businesses receiving finance and do not represent turnover or jobs already delivered.