The Kickstart Scheme provides funding to create new jobs for 16 to 24 year olds on Universal Credit who are at risk of long term unemployment.
Employers of all sizes can apply for funding until 17 December 2021 which covers:

• 100% of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of 6 months
• associated employer National Insurance contributions
• minimum automatic enrolment pension contributions

Visit the Business Wales website for more details.

The CMA has developed a Code on Environmental Claims to ensure that environmental credentials of businesses are not misleading. There has been a growing number of complaints to the CMS regarding businesses “Greenwashing” their activities. To help prevent this, the CMA has developed a new code of practice for businesses that make claims regarding their environmental credentials that is based on the following 6 principles

• claims must be truthful and accurate
• claims must be clear and unambiguous
• claims must not omit or hide important relevant information
• comparisons must be fair and meaningful
• claims must consider the full life cycle of the product or service
• claims must be substantiated

 
The six principles align with the Consumer Protection from Unfair Trading Regulations 2008, which is the legislation that underpins them. The code is particularly useful for businesses that want to advertise what they are doing in terms of environmental protection and to mitigate against climate change.
 
https://www.gov.uk/government/publications/green-claims-code-making-environmental-claims/environmental-claims-on-goods-and-services
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The Prime Minister has announced the following measures for international travel:

• All international arrivals must take a Day 2 PCR test and self-isolate until they receive a negative result.
• All contacts of suspected Omicron cases must self-isolate, regardless of their vaccination status. They will be contacted by NHS Test and Trace.

 
One point to note on this is that the requirements for the Day 2 PCT test to not apply to travel within the Common Travel Area. 
 
https://www.gov.uk/government/news/prime-minister-sets-out-new-measures-as-omicron-variant-identified-in-uk-27-november-2021
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Press release: 24/11/21

​The Wales Tourism Alliance, which speaks for different types of tourism businesses across the whole of Wales, has criticised the new Labour/Plaid Cymru Co-Operation Agreement’s approach to tourism.
 
The document resurrects the possibility of a tourism tax being introduced in Wales through local government financing reform.
 
Suzy Davies, Chair of the WTA said: “We understand why local communities in tourism hot-spots are anxious but we also recognise the value that balanced tourism contributes to local economies. 
 
“We understand the anxiety about the effect of a disproportionate number of second homes in some communities.  This is why our members support the principle of
distinguishing between genuine tourism businesses, unregulated holiday lets and second homes which are left empty for much of the year.
 
“What we do not understand is why this document looks so swiftly and short-sightedly to apply extra financial pressures on the hardest-hit, slowest-recovering, private sector industry in the Welsh economy - to which it contributes £6bn a year, the equivalent of over a third of Welsh Government’s budget
 
“Welsh Government is well aware of the arguments against double taxation; countries with tourism taxes have lower rates of VAT on tourism businesses.
 
“It also knows the industry’s views on the effect this will have on local businesses and, so, local jobs.
 
“With the level of public spending implied in the new document, it is hard to see a new tourism tax as anything other than a way of diverting existing funds to other priorities. 
 
“There is no suggestion in current proposals to ensure that any new tax take would be ringfenced, or would be additional to, the extra money that councils already get to meet specific tourism-related aims.
 
“In reality, the proposals could lead to a contraction in the visitor economy in areas of Wales that are most dependent on the tourism sector
 
“It is Welsh Government’s own policies to encourage longer stays with less impact on the environment.  Overnight visitors contribute more per head to the Welsh economy than day visitors, with less reliance on transport infrastructure.  The current proposals target businesses to solve a problem which is not of their making.
 
“To even contemplate a tourism tax when businesses are rebuilding after the worst of the pandemic is wholly misconceived. 
 
“Our businesses are facing a perfect storm of rises in the cost of supplies at a time of supplies shortages.  They are supporting rises in the cost of employment at a time of staff shortages. 
 
“They are taking all the financial risk at a time of a rising cost of living.  And they are facing perpetual uncertainty about covid restrictions at a time when they are trying hard to meet deferred demand and, so, limited availability for new visitors.”
 
ENDS

The Welsh Government has announced a new consultation on proposed planning changes in relation to second homes. This consultation seek views on the use of ‘class order’ in planning which would allow local planning authorities to require planning applications for additional second homes and short-term holiday lets in areas where they are causing significant difficulties for communities. This consultation will shape a pilot programme which could involve making changes to planning, taxation and tourism systems and could have significant implications for the self-catering  sector as well as destinations that are reliant on this accommodation type.  https://gov.wales/next-steps-confirmed-tackle-impact-second-home-ownership-wales-communities
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• New Funding In Wales

The Welsh Government has announce that a £45m fund to be made available to train staff and help Welsh SMEs. £10m of which will be given to further education colleges to deliver additional courses and qualifications to support 2,000 people to access a wider range of job opportunities and increase their earning potential in priority sectors. These include hospitality - including chefs, catering assistants, waiting and front of house staff.
 
                https://gov.wales/45-million-package-train-staff-and-help-welsh-smes-grow

Introduction
 
The Wales Tourism Alliance would like to acknowledge, on behalf of its members, the contributions made by both governments to securing the future of the tourism industry during the pandemic.  There is no question that prompt action and the delivery of financial resources saved jobs and businesses.  It was the hardest hit industry in terms of job losses and loss of earned income in Wales and has, according to EMsi labour market research, been the slowest to bounce back.  Whilst this was true for the UK generally, over-all recovery is happening more quickly in Wales than elsewhere, due primarily to a proportionally larger public sector (where jobs were protected). 
 
Despite solid recovery in the non-service private sector and high demand in parts of the service sector, e.g., care, tourism remains a vulnerable industry.  While parts of Wales had a good summer, it is still exposed to a range of financial shocks and threats and we urge Welsh Government to remember that we still need short, medium and long-term support to maximise our contribution to the Welsh economy.
 
Please note that, while we have focused on the forthcoming budget, some of the matters raised may also be of interest to PAC and the ETRA Committee.  We would be happy for you to share our thoughts with them.
 
 Budget Transparency  
 
As an interested, independent organisation representing the Tourism industry in Wales, external to Welsh Government,  it is currently not possible to effectively scrutinise Welsh Government support and investment and its impact on the growth of the Wales visitor economy.
 
This is true for direct funding of Visit Wales and its subsequent use, but just as importantly, spending in other departments, or other parts of the economy portfolio, which have an indirect effect on tourism; looking to tourism to help support other government objectives e.g., health and wellbeing, local government delivery, education and skills.
 
The annual report on the Welsh Government’s consolidated fund provides us with no information      with which we can usefully use to respond to this consultation.  The fact that the final current annual budget MEG for the economy is £1.75bn tells us nothing about investment in tourism.  The narrative accompanying the budget identifies some key areas of expenditure, which could include tourism.  However, without overt reference, it is unlikely that those recipients will think of how our industry can help them fulfil their aims and vice versa; apprenticeships, Brexit transition (despite a number of tourism programmes being supported through EU funding streams), agriculture (rather than rural economy), culture and sport.
 
Unlike the British Tourist Authority (Visit Britain & Visit England), Visit Scotland and Tourism Ireland, which are arms-length national tourism bodies, Visit Wales does not produce a standard, publicly available, annual report and set of accounts.  This means understanding its budget is extremely difficult and we have to rely on periodic statements made by Visit Wales or intelligence from recipients of various grants and loans where they are itemised in those recipients’ accounts or where there is willing disclosure.  Visit Wales statements are invariably made at a time of welcome investment in tourism activity, but without contextual reference to the department’s over-all budget.
 
Recommended Action: Visit Wales produces an annual report and set of departmental accounts.
 
The “Welcome to Wales: Priorities for the visitor economy 2020 to 2025” Plan contains no budget or specific KPIs. It is, therefore, not possible to establish to what extent the Welsh Government’s investment actually contributes toward growth. We understand that there is £60m behind this plan (in partnership with the Bank of Wales) but we have no access to the basis on which that figure was reached, how much of the plan it covers or what percentage of Visit Wales’s budget that represents.
 
This situation also means we will find it difficult to track the effect of the loss of programmes supported through EU funding streams, e.g. Regional Tourism Engagement Fund (RTEF).  Welsh Government has introduced new programmes of financial support which will need to be scrutinised once they have had time to bed in.
 
As this is the established position, we have no means of assessing year on year progress, not least financially.  There is no practical route into identifying secondary support for tourism in other departments.
 
Recommended Action: Annual report to include consistent standardised reporting on achievement against KPIs.  Also to include spend and results in other departments
 
In order to be able to assess the impact that the Welsh Government’s support makes toward growth, an accurate breakdown of the expenditure on marketing, product development, useful research and tourism training should be provided by the Welsh Government against ONS figures for tourism growth in Wales.  Accepting that a direct link of causation between spend and growth is not always easy to demonstrate, we are not in a position to begin assessing what is effective spend, and what is not, without understanding what is being spent in the first place.
 
The Budget for 2022/23 will not be released until the 20th December 2021.  Even when it is released, attempts to review previous budgets give us little confidence that it will be possible to accurately ascertain the level of direct tourism spend made by the Welsh Government toward tourism industry support - even in the four activities above.
 
Arguably, if the tourism industry is ever going to assist the Welsh economy to become truly sustainable, we need to establish the correlation between tourism spend and the contribution to growth made by the Welsh Government, in order to be in a position to suggest directional changes for the future development of the visitor economy.  While some sectoral bodies within the industry here in Wales are able to engage in some research, most of the resources for the most relevant research lie within Welsh government.  We do not know what Visit Wales’s research budget is, but it does not appear to be sufficient to craft a detailed, horizon scanning body of data to inform strategy development.  We note that Visit Wales does commission external research via consultancy.
 
Even so, the general point remains that, overall, the wider industry relies on the government’s own figures, without independent capacity of its own to offer further assistance.  That limits scrutiny by the industry of the effectiveness of spend and limits constructive challenge - emphasis on “constructive” - which it can offer. 
 
With, hopefully, the worst of the pandemic behind us, the need to mitigate the impacts of Brexit, and the need to meet the challenges faced in relation to environmental recovery and changing consumer expectations, this simple level of detail is not just required, it is essential in order to assist both governments and the private sector in planning the Tourism economy for the longer term. Indeed,  even this is not enough in itself, we need to be able to go much further and be able to drill down into detail beyond mere departmental budget headings.
 
Our main observation therefore (beyond the expected observations of value for money, etc.) is that a key priority should be the development of a comprehensive breakdown into both direct and indirect spend by the Welsh Government on the Visitor economy and an accurate assessment of that spends impact on actual growth’.
 
Cost implication: Reforming budget presentation and preparation of a Visit Wales annual report and set of accounts is not cost-free, but the information needed will already be collected by Welsh Government.

Efficiency & Effectiveness; the Value of Engagement  

The reverse side of the scrutiny coin is the industry’s keenness to be a constructive friend to Visit Wales. It is primarily made up of the small, private business which characterise the Welsh economy and no decisions on government investment in tourism will maximise its leverage if it is not fully informed by this majority of the industry.
 
Welsh Government reformed the structures for engagement between the industry and Visit Wales seven years ago.  The four regional Fora who meet with Visit Wales are led by chairs from the private sector, paid by government.  These replaced four regional partnerships, private sector organisations which received arms-length funding from government, but were perceived confidently as independent advocates and two-way conduits of necessary information.
 
Engagement with the fora has declined, especially seriously in south-east Wales although the picture is not consistent across the four fora.  Therefore, their value as two-way information conduits needs assessing.  Disenchanted larger tourism businesses are looking to engage directly or through other structures like growth deals and, to a varied extent, cross-industry bodies like local skills partnerships.  Smaller businesses claim that the fora are not representative - which may be unfair but they disengage as a result
 
While getting into the detail of industry concerns on this is not for this committee, we would like to see a commitment in the budget to fund an independent efficiency and effectiveness review of the current structure.  That should include a qualitative assessment of how the many voices, but clear messages from the industry are used to maxmise the effectiveness of Visit Wales in meeting both the industry’s and Welsh Government’s priorities.  It should, of course, be a virtuous and mutual advantageous partnership. The WTA is willing to assist with this work.
 
 
Cost implication: Previous reviews have cost in the region of £200k, which is no small sum.  As Visit Wales is part of a government department, the cost should be met from its own Central Services and Admin MEG, not the Visit Wales’ own budget.  This proposal cannot reduce funding made available for tourism.
 
 Covid Recovery  

During the height of the pandemic response, tourism was comparatively well-protected as the result of frequent engagement with the Fora and other industry leads giving real time feedback.
 
While that intensity of engagement has reduced, meetings continue so that Welsh Government can glean feedback re potential steps it might take to contain covid.  These tend to be at short notice which means attendees may not be fully armed with the quantum details of the financial hit implicit in any proposals.
 
Nevertheless, the following points re finance have been raised by our members in relation to the fragility of recovery, all of which have been made known to Welsh Government and which we would hope to see acknowledged in the budget as well as other policy areas:
 
-        Rising cost of goods and services
-        Shortage of staff; immediate and longer term
-        Decrease in capacity to earn income; staff shortages, covid regulatory requirements, deferred demand reducing availability
-        Investing in greening businesses at a time of reduced savings
-        A rapid change in the needs, demands and expectations of both new and existing customers
-        Increasing wages and costs of employment, e.g., NI contributions
 
 
To be clear, there is acceptance that staff should be properly treated both financially and via working practices.  There is also support for green modernisation, but none of this comes for free.
 
As these challenges are biting at the same time, we urge Welsh Government to resist any further downward pressure on the industry via the budget.  The challenges to tourism as an industry are not unique to Wales and were recognised in the UK budget in terms of non-domestic rates and support for culture.  We ask Welsh Government not to divert the consequentials away from meeting challenges which apply equally in Wales:
 
-        Extend the business rate relief period for tourism businesses and to introduce the equivalent of the new one year 50% business rates discount for retail, hospitality, & leisure sectors.

• Adopt the new business rates relief designed to support investment in property improvements so that no business will face higher business rates bills for 12 months after making qualifying improvements to a property they occupy. This is aimed at enabling businesses to adapt to meet rising demand and make improvements to their premises that support net zero targets and enhance productivity as employees return to the workplace.
• Alongside that, consider grants or low-cost loans for on-site capital spend on green infrastructure e.g., car charging points, replacement boilers, heat pumps, etc.  However, many businesses will not be able to access the schemes for domestic improvements and - being mainly micro and small businesses.  As they may fall outside any plans that support larger operators with such costs, consideration should be given to scheme entry thresholds.
• Consider extensions to payback periods on recovery loans via the Bank of Wales
• Place a moratorium on any expenditure from this budget to develop plans for a tourism tax.

 
 Sustainable Industry
 Tourism is currently competing for staff with other industries      - immediately and in the long term.  While the industry in Wales needs to take its own steps to make itself more attractive to different types of employee, employer and investor, Welsh Government has an important role in policy development to achieve that shared aim
 
An annual budget does not lend itself to detailed discussion of multi-year investment.  The Hospitality & Tourism Regional Skills Partnership will be giving evidence to Welsh Government shortly which will be of interest to you; WTA will have contributed to that.
 
However, while it will take some detailed consideration about what skills will add value to the industry, we would hope to see the following in the forthcoming budget:

• Resources committed to curriculum development to include the use of tourism as a context for wider learning; developing interpersonal skills, financial literacy and budgeting, confidence building and personal resilience, problem solving, persuasive writing (and speaking), critical thinking, psychology, forward planning; all transferable skills. This will be especially pertinent with an emphasis on local curriculum design.

 

• Funding for the scoping of degree level apprenticeships in visitor economy specialisms and improvements in the lines of sight between entry level and professional qualifications/experience

 

• Visible, increased funding for larger, independent destination management operators (DMOs).  We draw the committee’s attention to the de Bois report (England only), which makes the case that fragmentation of destination management, and fragmentation of funding, is counterproductive and ineffective.  This does take us back to the concerns about structures.  However, it is wholly unreasonable to expect a small part of a larger department in a large portfolio full of competing pressures to be responsible for running a private sector-led industry.  It’s industry partners need financial support too to help lift the load while this model exists.

 

• While it will likely take two years for any realistic growth in opportunities provided by inward overseas travel, working with Visit Britain we would recommend some investment in maintaining visibility in key markets so that Wales does not slip from view when travel opens more fully

 

• Transport infrastructure.  We acknowledge the investment in active travel and look forward to seeing its increased presence in tourism activity.  Active travel routes will also mean that some of the tourism workforce can take advantage of routes for non-leisure purposes. 

 
However, if we are to take non-car transport options seriously, we would expect to see considerable finances committed to new rolling stock on lines serving popular tourism destinations.  Further, existing support for bus companies could include clearer conditionality on maintaining consistent services on local routes accessing various visitor destinations; these are less dependent on free bus pass customers too.
           
Even so, car use will dominate travel for some time and we would recommend a clear financial signal on publicly accessible electric vehicle charging stations as well as support to individual businesses for on-site installation mentioned earlier.

• The wider point of general communication with Visit Wales is not a matter for this Committee.  However, we draw your attention to the fact that there have not been any dedicated industry communication officers at Visit Wales for some time. This needs attention as communicating with a SME heavy sector needs energy and time, and we recommend seeing this omission addressed in the budget . 

 
Wales Tourism Alliance – 21st November 2021

First Minister Mark Drakeford has thanked people throughout Wales for their hard work to help reduce record-high coronavirus case rates over the last three weeks. He has confirmed there will be no changes to coronavirus rules following the latest 21-day review. Wales will remain at alert level zero, which means all businesses are able to open and trade and the Covid Pass will not be extended to hospitality settings in this 3-week cycle.
First Minister Mark Drakeford said: “Three weeks ago we were facing a very serious situation in Wales, but everyone has pulled together and cases have fallen back from those record high levels. “I want to thank everyone for their hard work and the steps they have taken to protect themselves and their loved ones. Saying yes to the vaccine and crucially to the booster remains an essential step to help keep Wales safe".
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The outcome of the next review of regulations will be announced on Friday 10 December.

The Mid Wales tourism industry has been urged to grasp the air of staycation positivity that is engulfing the region to make it one of the UK’s most desirable leisure destinations. The message of optimism was delivered at the 13th Mid Wales Tourism & Business Conference, held at the Metropole Hotel & Spa, Llandrindod Wells, by a number of prominent speakers representing the breadth of the industry.
 
“The industry is bouncing back and this summer has been one of the best, if not the best ever, for a large number of us,” said Rowland Rees-Evans, chairman of MWT Cymru, who organised the conference.
 
“We have seen record numbers of people coming into Mid Wales. Staycationing looks as if it is going to be with us for some time to come, especially if people don’t have the confidence to travel abroad.
 
“Mid Wales has become a recognised destination and our job is to ensure it stays that way. We know that places like North Wales and Pembrokeshire have been very popular destinations for some time but I think Mid Wales is starting to catch up and long may it continue.
 
“Our challenge is to make sure that we can get these visitors to come back.”
 
But Mr Rees-Evans also warned of “dark clouds looming over the horizon” as the industry grapples with staff shortages, supply chain issues and the expected return of VAT to 20% from 12.5%. There will also be the 1.5% increase in National Insurance staff contributions for businesses to factor in.
 
“As an industry we are going to have to manage these changes carefully because they will affect our bottom line,” he said.
 
The human resource shortfall was also highlighted by Arwyn Watkins OBE, managing director of Cambrian Training Company, the conference’s lead sponsor, who urged delegates to challenge the current education system to ensure that apprenticeships are given equal importance for school leavers as staying in education currently is.
 
“Changing the compulsory education system won’t win votes for politicians, but it will address the needs of the area which is more important,” said Mr Watkins.
 
But the new chair of the Wales Tourism Alliance, Suzy Davies, also encouraged delegates to “seize the day” and made her organisation’s priorities clear as the industry continues its recovery from the pandemic.
 
“We intend to continue as the strong and united voice for tourism in Wales whilst at the same time being a critical friend to the Welsh Government by campaigning for better economic conditions,” she said.
 
“I want to assure the industry that we are a champion for the private sector. Visit Wales and the Welsh Government can’t do everything so we look forward to working with them. We have to get the balance of partnership right.”
 
That message of unity was supported by Steve Hughson, chair of Mid Wales Regional Tourism Forum, who praised the recent Visit Wales marketing campaigns that had raised the profile of the region to unprecedented levels.
 
“What is being done at the moment in the name of Mid Wales is absolutely magnificent,” he said, while reiterating that the forum will ensure that the “voice of tourism, hospitality and leisure is heard at the Welsh Government”.
 
Other enlightening presentations were delivered by travel journalist, York Membery, who gave insider advice on how to deal with the media, while Nerys Howell and Sian Roberts, from Loving Welsh Food, gave a light hearted lesson on improving customer service.
 
Community-led collaboration in Newtown and Rhayader was the topic of discussion addressed by Bill Stow, Rhayader 2000, Michael Booth, Dwr Cymru, and Stuart Owen, Open Newtown, while Lucy Von Weber, head of marketing at Visit Wales, reviewed their recent promotional campaigns and shared the latest data and research which led to their powerful autumn advertising campaign.
 
Brand specialist, Roger Pride, director of Heavenly, delivered advice to delegates on how to ensure their businesses are being noticed in a crowded market place.
 
In summing up the conference, MWT Cymru chief executive, Val Hawkins, said it had injected fresh energy into the tourism sector and encouraged delegates to spread the positivity across the region.
 
“We have welcomed a cross section of expert speakers with a wealth of knowledge in tourism to this conference which has been extremely well supported by a large number of attendees,” said Mrs Hawkins.
 
“We have a tremendous opportunity now to build the industry whilst at the same time we all need to listen to what our businesses are warning us about human resource shortages, supply chain issues and the pending return of VAT to 20%.”

The Welsh tax policy framework has been updated setting out the Welsh Government’s approach to developing tax policy, its strategic objectives and how these will be taken forward. The priorities align with the Welsh Government’s strategic objectives and reflect its commitment to delivering a 'fairer, greener, more equal Wales'.  These priorities include to consult on legislation permitting local authorities to raise a tourism levy. Find out more on Gov.Wales.
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