The Wales Tourism Alliance (WTA) has released its annual Industry Survey.
 
The findings indicate that many tourism businesses are being hit by recent changes in Welsh Government legislation with the self-catering sector particularly badly affected.
 
The report confirms claims from WTA members that the 182 day rule is having a negative impact beyond the tourism and hospitality sector.  Many professional holiday let owners say they are struggling at achieve the threshold of 182 let days per year which would push them into paying council tax, instead of business rates, on their property - often with an additional second home premium included.
 
Evidence gathered from the report, and other research, shows that many holiday let owners are local people who are no longer able to invest in local tradespeople to carry out improvement works on their properties.  One respondent said:
 
“There is no way we can risk paying local trades for ANY non0essential work – after 10 years of happily ploughing a large proportion of profits into the local economy paying for improvements to our cottage.”
 
The survey also showed that the weather and cost of living both had a significant impact on tourism and hospitality businesses over the 2024 holiday season, with a shift to more short last-minute breaks.
 
When asked what the Welsh Government could do for the sector, 64% of respondents said that there must to be a greater recognition of tourism as an economic driver. 
 
Chair of the WTA, Rowland Rees-Evans said:
 
“This survey, combined with other work the WTA and its members have done recently, shows that the tourism and hospitality sector is being hard-hit by a raft of Welsh Government policy including the 182 day rule, council tax premiums on “second homes” and Article 4 (in Gwynedd).
 
“We are asking the Welsh Government to recognise the significant burdens this is placing on local people who rely on this sector to earn a living and spend their money in the local economy.
 
“Tourism and hospitality contribute £3.8bn to the Welsh economy and employ more than 11% of people in Wales, rising to up to 20% in areas like Pembrokeshire and Ynys Môn where alternative employment is scarce.
 
“Whilst we recognise that many of these policies derive from the need to provide local homes for local people, it is evident that they are not having the desired outcome.   We are only just starting to see the bigger economic impact of consistently hitting a sector that is a significant driver of the Welsh economy.”

View the full report here.

High street estate agents from coastal and rural parts of Wales have told the Cabinet Secretary for Housing that the policy to free up properties as affordable homes is not working.
 
In a meeting with Jayne Bryant MS, agents representing West, Mid and North Wales explained that, while more properties were coming onto the market, hardly any were suitable as affordable homes for local people.
 
They confirmed that the buying and selling of the most expensive properties took place in its own ‘bubble’ with buyers coming from wealthier areas not put off by potentially high council tax premiums.
 
For the middle to higher price properties, these were being taken up by retirees coming into Wales, or people returning to an area, for use as primary residences as still being more affordable than similar properties in other parts of the UK.
 
Lower price properties tended to be in places too far away from facilities, too expensive to heat and maintain or had no gardens or parking, all of which making them unattractive to people looking for primary residences even if they were affordable.
 
Property agents from parts of Wales featuring honey pot destinations were invited to take part in a number of evidence-gathering sessions organised by Propertymark, the independent body for the property sector and the Wales Tourism Alliance, the body representing tourism providers of all kinds across Wales.  Those agents who participated were active in the local domestic sale and rental market, not the holiday let sector.
 
Suzy Davies, outgoing Chair of the WTA said:
 
“We have known for the last two years that professional holiday let businesses, often locally owned, have been caught up in the Welsh Government policies aimed at reducing the number of second homes in some specific parts of Wales.  This is despite the fact that the report which prompted these policies, commissioned by Welsh Government, acknowledged the importance of the tourism industry and distinguished between second homes and professional lets.
 
“Members told us that they were selling or thinking of selling their businesses because of the new, expensive taxes and other requirements being placed on them by Welsh Government, which were driving them to discount prices at the same time as rising costs and a drop in demand were affecting viability.   Solid, first-hand information from the Professional Association of Self-Caterers about how genuine business owners were being affected has already been shared with Welsh Government.
 
“Members also told us that their properties would add nothing to the stock of attractive affordable homes, even in areas where prices were falling.  We felt we needed to test this assertion before approaching the Cabinet Secretary for Housing by seeking evidence from the open housing market, entirely independently from holiday property representatives.  We were delighted that Propertymark agreed to co-produce this preliminary report.”
 
Tim Thomas of Propertymark said:
 
“Propertymark was delighted to work in partnership as an independent partner with the Welsh Tourism Alliance. We have been very active with both the Welsh Government and local authority consultations on measures to regulate holiday lets.
 
“We are supportive of the aims of the Welsh Government in ensuring that people can afford to buy or rent a home locally, to support local economies and the Welsh language. However, any measures must be proportionate and take consideration of any unintended consequences.
 
“The recommendations in the report have come from the insights of property agents during our research and we look forward to continuing to engage with the Welsh Government to assess the impact of their policies.”

You can read the report below.

A visitor levy for Wales | GOV.WALESA visitor levy for Wales | GOV.WALESStatement from Rowland Rees-Evans, Chair of the Wales Tourism Alliance.

The tourism and hospitality industry contributes billions of pounds annually to the Welsh economy and employs over 11% of the working population and the Wales Tourism Alliance does not believe that a Visitor Levy is the right solution for Wales. 
 
However, since it became clear that a Visitor Levy is a preferred policy for the Welsh Government. we have put a huge amount of work in to ensure that any proposals would both recognise the importance of tourism to Wales and be fit for purpose. 
 
We are disappointed that a number of the key points on which we felt we had reached an understanding with the Welsh Government have not been adequately reflected in the proposed policy. 
 
In particular we feel that the Welsh Government has missed a key opportunity to establish a registration scheme for self-catering accommodation that would have incorporated key health and safety criteria and assured visitors that their accommodation meets basic assurance standards.
 
What has been proposed will instead increase the costs for tourism and hospitality businesses, which will be passed on to our visitors, without any perceived “added value”. 
 
We are also disappointed that there is no clear commitment that the funding raised by the levy will be dedicated to improving the visitor experience in Wales.
 
This was the Welsh Government’s opportunity to deliver a gold standard in tourism and accommodation – setting Wales apart from the rest of the UK.  Instead it has merely made Wales more expensive without any perceived added-value for our visitors.


Link to the Welsh Government's Visitor Levy policy and strategy page: A visitor levy for Wales | GOV.WALES

ROWLAND REES-EVANS  has been appointed  as the new Chair of the Wales Tourism Alliance. 
 
Well known in tourism and farming circles, the former High Sheriff of Dyfed and county councillor takes over from Suzy Davies this month.
 
The Wales Tourism Alliance represents over 6000 businesses through its member organisations, across sectors and across Wales.  It both challenges and works with government for the benefit of the industry, and collaborates with other organisations on research and campaigns.
 
Rowland said:

"This appointment is an honour and a challenge that I am very much looking forward to. The WTA plays a major role within the tourism industry representing the main tourism representative bodies across Wales. I fully understand the precarious position the industry finds itself in at present and I along with the WTA board and members will strive to continue the excellent work that Suzy Davies, my predecessor, has done over the past three years.

“We will continue to work closely with governments at all levels to ensure we achieve those positive outcomes that the tourism industry here in Wales needs and deserves."
  
Suzy said: 
 
“I’m delighted to be able to hand over to such a well-respected advocate for tourism in Wales.  As the Chair of Mid Wales Tourism and through running his own well-established but innovative tourism & leisure business, Rowland  has first hand experience of the challenges facing the industry.  He also has the experience to navigate and negotiate with leading decision makers, as well as working in common cause with others to make the most of the opportunities for the industry and those who work in it
 
”That work needs to continue in earnest after such an intense period of external pressures and government  policy changes whose effects are now demonstrable”.
 

This survey is for Estate Agents and Private Rental Agents only.
Closing Date 3 November 2024.

Since 2019, buyers, sellers and renters have been facing a rise in the cost of living and doing business, the effects of the war in Ukraine and covid, and, latterly, new Welsh Government policy.

The Wales Tourism Alliance in association with PropertyMark is trying to determine how buying, selling and renting decisions have changed since 2019. In particular, we seek evidence to see whether the Welsh Government’s “three pronged approach” to limit the number of second homes is meeting its aims of increasing the number of affordable homes (bought or rented) in some parts of Wales. The findings of this survey will be included in a report presented to the Welsh Government’s Cabinet Secretary for Housing.

This survey seeks a level of granularity which you may not be able to provide. However, we would still like to hear from you with as much detail as possible - rough percentages, general trends - so please add anything additional that you would like to say in the final section.

Please note the following definitions (NB: These definitions do not refer to the 182-day taxation rules but the actual use of properties):

• “Second Home”: Not the owner’s primary residence. Used only by the owner and friends.
• “FHL”: Not the owners’ primary residence. Furnished holiday lets used solely for short term leisure stays at a commercial rate with no periods of owner residence; professionally run, regulated businesses. May be locally owned but not necessarily
• “Mixed use”: Property bought as a second home but let casually at a commercial rate for periods to help raise income to offset costs. Not regulated businesses. We do not refer to these as ‘Airbnb’s as many FHLs now use that platform as well to promote their businesses alongside casual, unregulated letting of properties
• “Rented Homes”: Privately owned properties occupied by long term tenants as their primary residence.
• “Primary Home”: being purchased as a primary residence.

PLEASE DO NOT INCLUDE COMMERCIAL PROPERTY (UNLESS IT FITS INTO ONE OF THE ABOVE CATEGORIES)

​The Wales Tourism Alliance is a well-established umbrella membership organisation representing all tourism sectors across Wales.    
 
Our members are themselves sector-membership organisations operating in Wales, destination marketing/management organisations and larger employers with a direct or indirect interest in tourism in Wales.  This means that we advocate with all levels of government, especially Welsh Government, on behalf of over 6000 small and micro businesses on policy which affects them.  We also work collaboratively with partners on common causes, helping promote responsible tourism in Wales as well as offering evidence-based challenge and solutions to problematic policy.
 
The Chair works with the Executive Board in setting strategic direction and ensuring good governance as well as offering support to our Policy Advocate.  You will also represent the organisation at public events such as the Wales Tourism Week Reception at the Senedd, conferences etc. as well as giving media interviews.
 
To apply, please send a CV and short covering email explaining what you can bring to the role and why it interests you, to [email protected].  The outgoing Chair is happy to discuss the role with you at any point before the closing date for applications.
 
Closing Date: 30th October, 5pm.  Informal interviews, conducted virtually, will take place shortly thereafter and we hope to announce the appointment by mid-November.
 
 Please note this is an expenses-only role.

The Economy, Trade and Rural Affairs Committee is undertaking an enquiry into the Foundational Economy.  The Committee has requested views on any or all of the issues covered in the terms of reference below: 

• To what extent has the Welsh Government embedded support for the foundational economy into its overall approach to economic development? What further steps should it take to do this?
• Given the cross-portfolio nature of the foundational economy, how should the Welsh Government create a co-ordinated approach to mainstreaming support for foundational economy sectors across government?
• Which of the Welsh Government’s foundational economy policy initiatives have been most successful, and why? Which have worked less well, and why?
• What examples of best practice exist in different foundational economy sectors and places within or beyond Wales? How could the Welsh Government better support partners to deliver best practice, and to scale it up where appropriate?
• What progress has been made in using procurement to strengthen the foundational economy since our predecessor Committee looked at this issue in 2019? What further actions are required to deliver greater progress, and what innovative examples of best practice could be built on?
• How effective have the Welsh Government’s actions to deliver fair work in foundational economy sectors been? What further steps should it take within its devolved powers to progress this agenda, and how can it work with the UK Government to drive improvements in non-devolved areas?

The WTA has submitted this response.

UKtourism is still struggling to recover four years after the global Covid-19 pandemic, with the country facing a £2.8 billion shortfall in tourist spending and the number of overseas visitors still not back to pre-pandemic levels.
More than four years since the UK was plunged into an unexpected lockdown during the global pandemic and travel was severely restricted, the country has been unable to restore its all-important tourist industry.
There were around 38 million overseas tourists visiting the UK last year, and while this figure has considerably increased for two consecutive years, it remains 7.1 per cent short of 2019’s tourist figure of 40.9m visitors, ONS data analysis from the Centre for Economics and Business Research (CEBR) shows.

For more details follow this link to the Independent article.

Ambitious plans for a Visitor Levy in Edinburgh took another significant step forward this week as councillors agreed key details of the draft scheme.
It is anticipated that the levy will generate tens of millions of pounds a year to reinvest in the city’s infrastructure and sustainable tourism from summer 2026.
A formal 12-week public consultation seeking further input from residents, visitors and businesses, will commence in the coming weeks. This will inform the final scheme, which will be agreed in January 2025, allowing the 18-month implementation period to begin.

​Find out more here.