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Holiday let crackdown puts ‘thousands of Welsh jobs at risk’

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PASC warns tourism sector could buckle under 182-day rule

HOLIDAY let owners across Pembrokeshire and the wider Welsh tourism industry say they are being pushed to breaking point by “brutal” tax changes that could cost thousands of jobs, force businesses to close, and lead to mental health crises among struggling operators.

The Professional Association of Self Caterers (PASC UK) says Welsh Government reforms introduced in 2023—intended to free up housing stock for local people—are having unintended and damaging consequences.

Under the new system, self-catering properties must be made available to let for at least 252 days a year and actually let for 182 days in order to qualify for business rates. Failing that, they are classed as second homes and liable for full council tax—often with steep premiums of up to 300% applied by local authorities.

The Herald understands that many operators, particularly in rural Pembrokeshire and west Wales, are simply unable to meet those targets during the quieter winter months, and are now receiving council tax bills running into tens of thousands of pounds.

One such case, cited by PASC, involved a farming family—previously encouraged by Welsh Government policy to diversify into tourism—who were hit with a £37,000 bill after falling short of the 182-day threshold.

Nicky Williamson, chair of PASC Wales, said: “Without this bed stock, we simply won’t have the capacity to house tourists. And if the tourists stop coming, the pubs, the cafés, the shops—everyone suffers. This is a domino effect that could be catastrophic for our communities.”

She added: “The mental health strain is immense. Operators are telling us they’re lying awake at night worrying about unexpected council tax demands. The uncertainty is brutal.”

A recent PASC survey found that 94% of respondents reported increased stress levels, with 60% saying they did not expect to meet the 182-day requirement this year.

DISCOUNTS, PANIC AND EMPTY HOMES

Karen Jones, who operates a holiday cottage business in Conwy county, said she and her husband had resorted to offering 20% discounts during February and March to lure back regulars. “If a booking cancels, panic sets in. We delay maintenance work, we scramble to fill gaps—it’s unsustainable.”

Frankie Hobro, who owns Anglesey Sea Zoo, said visitor numbers had fallen more than 20% since 2023. She directly linked the drop to the 182-day rule and fears the knock-on effects could be devastating.

“We’re seeing huge numbers of empty homes up for sale—but they’re not being bought by local families. They’re being snapped up by corporate buyers who can afford to keep running them commercially. That doesn’t help communities—it does the opposite.”

The closure of Oakwood Theme Park in Pembrokeshire last month has already sent shockwaves through the sector, and Hobro warned that more businesses could follow unless action is taken. “We’re sleepwalking into a tourism crisis,” she said.

‘TOO FAR, TOO FAST’

William Matthews, who runs Oyster Holiday Cottages in north Wales, told The Herald: “We understand the principle—these homes shouldn’t just sit empty all year. But the bar has been set too high, too fast. There needs to be more flexibility.”

Matthews said his agency had always tried to extend the season into the so-called ‘shoulder months’, but the weather and school term patterns often made it impossible to reach 182 days of bookings. “This rule may have tipped the balance too far,” he warned.

BALANCING HOMES AND JOBS

Welsh language campaign group Cymdeithas yr Iaith has supported the changes, arguing they help reduce the dominance of second homes and rebalance the housing market. Spokesperson Jeff Smith said: “We need to prioritise local people who are being priced out of their own communities. This policy helps make housing more accessible.”

The Welsh Government defended the move, saying: “We recognise the importance of tourism to the Welsh economy, but must balance that with the needs of our communities. Everyone has the right to a decent, affordable home.

“Our package of measures is designed to ensure that second home owners and holiday let operators are contributing fairly to local services and infrastructure.”

Figures show around 159,000 people are currently employed in tourism across Wales, many in coastal and rural communities like Pembrokeshire. PASC has warned that without a rethink, a significant proportion of those jobs could be at risk in the coming years.

 

Business

Pembrokeshire Lydstep Beach Village development refused

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A CALL for an extra sign advertising a Pembrokeshire holiday park, adding to exiting unauthorised ones, which planners say would create “visual clutter and intrusion” and a distraction to drivers, has been refused.

In an application to Pembrokeshire Coast National Park, permission was sought, through Lakeside Signs Limited, for an additional sign advertising Haven’s Lydstep Beach Village, near Tenby, the sign proposed for North Lodge where the holiday park joins the main road.

Pembrokeshire County Council’s highways authority raised no concerns regarding the specific location of the sign, but said “there remains a broader concern regarding the cumulative impact of signage along this section of highway,” adding: “The increasing proliferation of signs in this location has the potential to create a visually cluttered environment, which may distract drivers and, in turn, give rise to road safety implications.”

A Park officer report recommending refusal said: “Currently, there are eight flagpoles, one A-frame banner type sign, one pole mounted panel sign, and a further panel sign, located behind the stone wall on the western side of the park’s entrance. None of these advertisements have the benefit of advertisement consent.”

It added: “The increasing number of signs in this location has the potential to create a distraction to drivers, which may result in road safety implications. In addition, the proliferation of signage would create clutter that would result in visual intrusion in this countryside location affecting amenity. As such, the recommendation is to refuse.”

It went on to say: “Whilst it is not deemed that the proposed advertisement would result in harm being caused to the specific special qualities of this area, there are concerns that the display of this advertisement would, along with the remainder of the advertisements, which are unauthorised, result in a proliferation of advertisements, which in turn would cause visual clutter and intrusion.

“This is especially problematic in a countryside location where development is strictly controlled. Should the existing signage be consolidated and rationalised, the Authority may support the proposed sign, however, currently, any additional signage would not be deemed appropriate.”

The application was refused on the grounds that it would, along with the exiting signage, “result in visual clutter and intrusion which would detract from the visual amenity of this countryside location, and would result in potential distraction to drivers, which in turn would rise to road safety implications”.

 

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The Cheesecake Guy store could be coming to Saundersfoot

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SAUNDERSFOOT’S Coal Building interpretation centre could soon host the third store for Welsh cheesecake business The Cheesecake Guy Ltd, in plans before the national park.

In an application to Pembrokeshire Coast National Park, Craig Taylor of Merthyr Tydfil-based The Cheesecake Guy Ltd seeks a change of use of part of Saundersfoot’s Cambrian Terrace Coal Building interpretation centre to create a small retail unit.

On its website, The Cheesecake Guy says of its business and products: “Established in 2019, The Cheesecake Guy is all about delivering indulgent, handcrafted cheesecake desserts with a twist. While we offer a range of sweet treats, our specialty — and customer favourite — is the signature cheesecake jar.

“Made with quality ingredients and packed with rich, creamy layers, our jars are the perfect dessert for any occasion. Whether you’re treating yourself or sharing with others, The Cheesecake Guy brings a spoonful of happiness to every bite.”

While no supporting statement has yet been published for the Saundersfoot proposal, the application says the scheme would employ two full-time members of staff, operating 10am-6pm Mon-Sat, and 10-5 on Sundays and bank holidays.

It says the proposed site is currently a mixed-use retail and gift shop, having previously been used as office space.

It adds: “This is a space within a building that is still trading, the space we are wanting a change of use was last used by Persimmon Homes as an office space.”

Of the scheme itself it says it will involve “retail sales of pre-prepared desserts and merchandise,” adding there will be “no on-site manufacturing or heavy processing,” with “equipment limited to display fridges and freezers”.

If approved, the Saundersfoot site would be the third outlet for The Cheesecake Guy, with sites in Merthyr, and, more recently, Newport Market.

After that store opened following redevelopment of Newport’s Victorian market, Craig Taylor, of The Cheesecake Guy, said: “We are very excited to be part of the new development in Newport Market alongside some other amazing small businesses.

“We feel this is definitely the next step in the right direction after our Merthyr Tydfil store taking off so well.”

For its Newport site, The Cheesecake Guy says: “We specialise in creating a wide variety of cheesecake desserts that cater to all tastes. Our menu features popular favourites that have won the hearts of many, alongside exciting new creations designed to keep your taste buds satisfied.

“Whether you’re a classic cheesecake lover or an adventurous foodie, we promise a cheesecake experience like no other. Each cheesecake is made with the utmost care, ensuring a rich, creamy texture and a burst of flavour in every slice (or jar!).”

The Saundersfoot proposal will be considered by park planners at a later date.

 

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Business

Pembrokeshire Broad Haven holiday park works refused

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A DEVELOPMENT call for a Pembrokeshire holiday park has been turned down by Pembrokeshire Coast National Park.

In an application to park planners, Broad Haven Holiday Park, through agent Gerald Blain Associates, sought permission for the relocation of a boat storage area, vehicle shed and play area along with rewilding of adjoining fields at Broad Haven Holiday Park, Broad Haven, near Haverfordwest.

The application was supported by local community council The Havens.

However, an officer report recommended refusal.

Detailing the application, it said: “The proposal relates to the extension of an existing static caravan holiday site into adjacent undeveloped woodland to accommodate the relocation of boat storage, a vehicle shed, and a children’s play area, together with associated ecological mitigation measures. No increased pitch numbers are proposed.

“The development site has already undergone some site clearance, resulting in the removal of approximately 1,000 square metres of woodland.”

It went on to say: “The existing site is already intervisible with the coast, and the proposed relocation of boat storage would likely increase its visibility rather than reduce it. Without supporting evidence in the form of a Landscape and Visual Impact Assessment (LVIA) or Zone of Theoretical Visibility (ZTV) demonstrating that the development would be visually contained, the proposal appears contrary to the guidance contained within the SPG and the objectives of Policy 41.

“As a result, the proposed development is considered to detract from the special qualities of the National Park in this location and would be detrimental to the quality and character of the landscape character area in which the site sits, and as such does not comply [with policies].”

The application was refused on grounds including it being sited within previously undeveloped land within a flood zone, a lack of information on potential impacts on biodiversity, and it is “considered to detract from the special qualities of the national park in this location and would be detrimental to the quality and character of the landscape character area in which the site sits”.

 

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