![]() There can be no doubt that for tourism businesses in Wales recent years have been incredibly challenging with the introduction of a raft of new policies and regulation at the forefront of the industry, all taking place against a straitened economic backdrop. However, Wales Tourism Week offers a real opportunity to celebrate the truly distinctive and authentic visitor experience that we offer here in Wales which sets us apart and makes us uniquely different as a destination. Wales is all about something truly authentic and has a story worth telling. During Wales Tourism Week the WTA is asking tourism operators to showcase their businesses by inviting local politicians – their Senedd Members, perhaps newly elected MPs, and local councillors to come along and experience their offer, see what they do first-hand and share their own particular stories with them – the good and the bad. We at the WTA want to hear about it too, so please let us know about any events you are holding and report back on the outcome! For any events which you are holding over Wales Tourism Week which you would like listed on the Wales Tourism Alliance website, please contact: [email protected]
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On the 14th June, the Wales Tourism Alliance was delighted to learn that Professor Andrew Campbell was awarded an MBE in the King’s Birthday Honours List - for services to tourism.
Andrew was Chair of the Wales Tourism Alliance until 2021 and steered the WTA through the difficult years of the pandemic. A respected academic within tourism, he is a Professor of Practice in Tourism within the University of Wales, Trinity St. David bringing useful insight into the issues facing the tourism and skills sectors. Whilst at the WTA, Andrew always recognised that effective engagement between the private and public sectors was hugely important and that success depended on partnership and collaboration. He completely understood that tourism creates jobs in places that other industries don’t and that the sector deserves to be taken seriously. Describing himself as ‘passionate about tourism, cake baking and swimming in the sea’, Andrew lives in north Pembrokeshire with walking boots and bike close to hand. The WTA sends hearty congratulations to Andrew Campbell on this very well-deserved award! Last year’s announcement from Jeremy Miles MS, (the former Welsh Government Minister for Education), on proposals to change the school year in Wales were met with a mixed response from tourism operators - ultimately there was a real fear about how it would potentially impact the market at a time of great economic uncertainty. The Wales Tourism Alliance responded to the consultation which took place on this proposal.
Earlier this month on the 4th June, the Welsh Government Cabinet Secretary for Education, Lynne Neagle MS confirmed that plans to change school holidays in Wales have now been postponed until the next Senedd term. Lynne Neagle MS said that the decision allows schools to focus on other educational reforms and improve student attainment without the added pressure of altering the school calendar. She went on to say that the priority will now be to maximise the support available to learners during the school holidays, especially in the poorest communities in Wales. Commenting on the announcement, Suzy Davies (Chair of the Wales Tourism Alliance) said: "Although this was clearly an education-first policy, the Cabinet Secretary has specifically cited the effects on tourism in her announcement today. "The arguments we made were well-evidenced, not least on the educational benefits that travel and working in tourism offer young people. "While we are thrilled with today's announcement, this was only one policy affecting Welsh tourism. The cumulative effect of other policies on the stability of the industry, the jobs it protects and the contribution it can make to sustainable communities remains a clear and present danger. "We now look to other Cabinet Secretaries to show the same level of respect for tourism when it comes to considering the effects of their policies." ![]() “Tourism businesses across the UK will be looking closely at manifesto commitments which affect the industry, but will definitely be wanting good news on business rates and VAT. Countries that have tourism tax also have lower VAT rates than we have here – and crucially – compared to VAT applied to other types of businesses in those countries themselves. That matters in in Wales where Welsh Government has additional tax burdens of its own on tourism and hospitality businesses.” Suzy Davies - Chair of the Wales Tourism Alliance Introduction - the picture in Wales Tourism in Wales ought to be well placed to benefit from growth and provide economic benefits whilst increasing revenue for the Exchequer. However, many operators the length and breadth of the country are telling us at the WTA that they have never known more difficult or challenging times for the industry. Tourism in Wales is responsible for 5% of our GVA and brings in the equivalent of 1/7th of the Welsh Government’s annual budget. This figure was 1/6th pre-pandemic which gives an indication of the loss to the Welsh economy. Whilst this list of ‘asks’ from the Wales Tourism Alliance relates primarily to the UK General Election (and therefore to matters which are not devolved to the Welsh Government in Cardiff Bay), it is important to recognise that over 30 per cent of businesses that were surveyed as part of a tourism barometer last February reported that most of their concerns were to do with the cumulative effect of Welsh Government policies.
Moreover, the 182-day rule fails to effectively distinguish between self-catering businesses and casual-let investors or second-home owners. This lack of differentiation not only unfairly penalizes local businesses but also undermines efforts to professionalize the industry. Additionally, it does not address the need for more affordable housing, as properties are not being utilized for their intended purpose due to the punitive nature of the occupancy threshold. Here at the WTA, we feel strongly that this is something all prospective parliamentary candidates standing in Wales at this General Election need to be aware of. The WTA has repeatedly asked Welsh Government to consider revisiting its policies regarding occupancy thresholds for Furnished Holiday Lets in order to ensure they are fair and equitable for businesses, while also supporting the sustainable growth of the tourism sector.
Implementing a tourism tax would require effective administration and enforcement mechanisms. Local authorities would need to establish clear guidelines for tax collection and ensure compliance among accommodation providers. The Wales Tourism Alliance would welcome a debate on restructuring the existing high levels of tax already paid by tourists so that local communities that host visitors can benefit more directly from local tourism expenditure. Business Rates Reform
Despite recognition of this issue and the introduction of sectoral reliefs, there remains a persistent risk that these reliefs could be withdrawn. Furthermore, many businesses still struggle to access the necessary support. This inequitable tax framework threatens the viability of traditional hospitality and leisure businesses, undermining the foundation of the UK tourism industry. Comprehensive reform is essential to ensure that these businesses can thrive and continue to contribute to the tourism sector. Lower rates would incentivise operators to open more businesses around the country delivering growth and employment, all of which generates revenue for governments. A lower business rates level together with a fairer valuation system and improved administration would unlock tourism's potential and bring business rates into the 21st century. What the WTA is asking of the next UK Government:
Reducing VAT on hospitality, accommodation, and visitor attractions will provide immediate financial relief to struggling businesses. Lowering the tax burden will improve cash flow and profitability, enabling businesses to invest in their operations and workforce. This, in turn, will lead to job creation and retention, fostering a more robust and resilient economy. Moreover, aligning our VAT rates with those of other tourist destinations will make our sector more competitive, attracting more visitors and boosting tourism revenue.
The Shortage Occupation List identifies roles that are hard to fill within labour markets. By adding critical tourism and hospitality positions to this list, governments can facilitate the recruitment of foreign workers to meet industry needs. Roles such as chefs, hotel managers, and housekeeping staff are prime candidates for inclusion, addressing specific shortages and supporting the sector's growth. The current visa application process can be cumbersome and time-consuming, deterring potential workers from applying. Simplifying these procedures, such as reducing paperwork and processing times, can make it easier for businesses to attract international talent.
Visa-Free Travel: Establishing visa-free travel arrangements for citizens of the EU and the UK, allowing for seamless movement across borders for short-term stays, including tourism, business trips, and visits to family and friends. Work and Study Opportunities: Facilitating access to work and study opportunities for EU and UK citizens within each other's territories, including provisions for temporary work visas, student exchanges, and research collaborations. Mutual Recognition of Qualifications: Streamlining the process for recognizing professional qualifications obtained in either the EU or the UK, enabling individuals to practice their professions and contribute to the workforce without unnecessary barriers. Mobility for Business Purposes: Facilitating the movement of business professionals, entrepreneurs, and investors between the EU and the UK for trade, investment, and other business activities, including provisions for intra-company transfers and business visits.
The reinstatement and expansion of the VAT Reclaim Scheme would likely result in an additional £3.1 billion spent by visitors in the UK. This spending would directly benefit the tourism and retail sectors, supporting approximately 44,000 jobs. An increase in visitor spending would also positively impact supply chains, supporting an additional 34,000 jobs in related industries and the projected net benefit to the Exchequer from this increased economic activity is estimated at £350 million per annum.
Implement and enforce stringent regulations against the discharge of untreated sewage which impacts upon cross-border rivers like the Severn and the Wye as well as border estuaries such as the Severn and the Dee. The presence of pollutants can devastate marine and freshwater ecosystems, leading to loss of biodiversity. The discharge of untreated sewage poses significant risks to public health and undermines the quality of recreational waters.
The Law Commission’s report ‘Celebrating Marriage – a new weddings law’ (July 2022), included recommendations to abolish restrictions on where a wedding can take place and permit weddings in any location or venue subject to an officiant’s approval. If agreed this would not only allow weddings to be conducted afloat on inland waterways but also in the territorial sea, bays and other coastal waters adjacent to England and Wales. CONCLUSION: The tourism sector in Wales has demonstrated remarkable resilience in the face of extraordinary change and challenges in recent years. Despite this resilience, significant issues persist, and the barriers to growth remain substantial. However, if stakeholders and governments recognize the visitor economy as a vital component of their growth plans, there is real potential for significant improvement. The Wales Tourism Alliance hopes that this document will provide guidance to the next UK Government as to how this could be achieved. The Wales Tourism Alliance have appointed a new Consultant Advocate from 1st April 2024. Lisa Francis served a term as an elected member of the then National Assembly for Wales and was her party’s spokesperson for tourism, transport, culture and Welsh language, with further responsibility for developing the Assembly’s own procedural rules.
A Welsh-speaker and former proprietor of the Queensbridge Hotel in Aberystwyth, she was also a Director of Mid Wales Tourism and Tourism Advisor to Nominet UK. She has worked with an AM and MP, supporting them with research, media and constituents’ casework and, as a freelancer, offered bespoke advice to small tourism businesses caught up in the complicated interest rate swap scandal. Lisa Francis replaces long standing Policy Advocate, Adrian Greason-Walker, as of the 1st April 2024. Please also note also Wales Tourism Week this year, with a Senedd reception, will be week commencing 15th July, not May as has been the case in previous year. Wales Tourism Week is a industry led opportunity to raise awareness of the issues impacting our industry, but it is also a time to showcase the quality of our offer. 2023 saw a wide range of support from over 10 events hosted across the industry which then culminated in a well-attended annual reception at the Senedd in Cardiff Bay.
This year's 2024 Wales Tourism Week Senedd Reception will be held on Tuesday 16th July - So please save the date. The Tourism Barometer assesses business confidence in the Welsh tourism industry and provides indicative results at national, regional and sectoral level. The latest survey, undertaken February 2024, took a look back at 2023, assessed of business confidence, occupancy statistics and a look at use of Welsh in the workplace. Of no surprise to WTA members will be the key takeaway quote...‘High costs and Welsh Government policies dominate concerns’.
Item 1.8 of the report directly states ‘Respondents citing more than one concern have been asked which one will impact on their business the most. When narrowed down to one, ‘Welsh Government policies’ are the single biggest concern among self-catering operators, and high operating costs are the biggest concern in all other sectors’. In percentage terms: ‘High operating costs’ were 32% unprompted and the related macro-economic issue ‘people lacking in disposable income’ at 22% with ‘Welsh Government policies’ at 30%. The WTA and its members have written to our new First Minister asking for an urgent review of 182 Day and the cumulative impact of other Welsh Government Policies remains at the top of our list. (See item below) The full report can be found here: Tourism Barometer: February Wave, 2024 | GOV.WALES Local Government and Housing Committee’s Stage 1 report on the Local Government Finance (Wales) Bill19/3/2024 Following on from the evidence given by Suzy Davies, Chair of the WTA and other witnesses the Local Government and Housing Committee’s Stage 1 report on the Local Government Finance (Wales) Bill has been released. The Bill is currently at Stage 1, (an explanation of the various stages of Senedd Bills is available in the Guide to the Stages of Public Bills and Acts). On 20 February 2024, the Business Committee agreed to (PDF 47KB) extend the deadline for Stage 2 proceedings to 14 June 2024.
In brief the Bill proposes in respect of the non-domestic rates system:
Full details as to the passage of the Bill and the report can be found on the pages here: https://business.senedd.wales/mgIssueHistoryHome.aspx?IId=42241&optionId=0 Hundreds of micro, small and medium-sized businesses in Wales will soon be able to apply for Welsh Government funding designed to help them to reduce their running costs. Grants of between £5,000 and £10,000 will be available to eligible businesses in the retail, hospitality, and leisure sectors.
The £20m Future Proofing Fund will help businesses strengthen their future trading position by increasing profitability through investment in renewable energy technology, improvements to the fabric of their premises, and upgrades to systems or machinery to reduce energy use. Economy Minister Vaughan Gething said: “The ongoing cost-of-living and cost-of-doing-business crises continues to present difficulties to businesses across Wales. These grants will help micro, small and medium sized businesses from the retail, hospitality and leisure sectors to make some significant changes in the way they run their operations so they can adapt for the future.” Finance Minister Rebecca Evans said: “In tough times, we want to help businesses get their bills down for good. This new fund will help reduce running costs with practical support that aids long term business planning. We are also providing a fifth successive year of support for retail, leisure and hospitality businesses with their rates bills, at a cost of £78m. This builds on the almost £1bn of support provided in rates relief schemes to these sectors since 2020-21.” The grants will be paid up to 75 per cent of project costs or £10,000, whichever is the lesser amount. It is expected that the business will contribute the remaining 25 per cent from other sources. The fund is open to businesses located in Wales (either headquartered or have an operating address in Wales) and which employ people in Wales. An eligibility checker will open in mid-April 2024 and applications will open in May 2024. |