‘Maybe not Wales this year...’

As there are warnings proposed changes to holiday let regulations could have a devastating effect on Wales’ tourism industry, Kathie Mcinnes looks at the implications for holidaymakers from Staffordshire

FAMILIES in Staffordshire hoping to book holiday cottages in Wales could be hit by plans affecting self-catering operators.

Critics claim the proposals would ‘decimate’ the Welsh tourism sector and would do little to resolve its housing crisis.

The Welsh Government wants to raise occupancy levels to at least 182 days a year to stop second homes and holiday lets pricing local people out of the property market.

But a survey of more than 1,500 businesses by the Wales Tourism Alliance (WTA) found 84 per cent of self-catering operators believe they won’t be able to continue if the new letting thresholds are imposed.

One large attraction is already abandoning plans for 10 luxury units and will spend the money in England instead, reports Wales Live.

The National Showcaves Centre for Wales at Dan Yr Ogof, Brecon Beacons, has 20 self-catering units, but its booking agents cannot guarantee the attraction will meet the new letting requirements.

Its chairman, Ashford Price, warned of ‘serious economic damage’ caused by the plans. He said many Welsh businesses will have ‘no option’ but to close and make staff redundant.

A business currently paying £10,000 in rates could face increased bills of up to £40,000, said Mr Price. This will make holidays let ‘untenable’ for many of the 8,000 self-catering properties in Wales, especially for smaller and medium-sized operators.”

As 14 per cent of the country’s 34,000 farms now have some form of tourism element, the rural economy is likely to be hit hard, he added.

Other quirks could include charging council tax on cottages with planning permission preventing them from residential use.

Mr Price said: “If the Welsh Government goes ahead with the new lettings requirements, Wales will lose a massive number of self-catering operators. Many tourism jobs will disappear and the local economy will suffer as there will be fewer visitors to buy their goods.

“Wales will not be able to compete with similar self-catering operations in England and Scotland.”

The WTA, UK Hospitality Cymru (UKHC) and Professional Association of Self Caterers UK (PASC UK), have called on the Welsh Government to amend its plans. They said: “It will reduce local owners’ ability to earn an income and cause a decline in secondary jobs in hospitality, retail, house maintenance and cleaning.” Under the plans, to qualify for business rates, self-catering properties have to be available to let for at least 252 days and actually let for at least 182 days. Currently, the actual occupancy threshold is just 70 days. From April 2023, a self-catering business not meeting the new threshold will incur council tax instead of business rates – and in some counties, the council tax could be hiked by 300 per cent.

Addressing the issue in the Senedd, North Wales MS Mark Isherwood said holiday-let business owners had expressed their concerns. Examples included a Gwynedd family with two holiday lets in their garden which are fully booked during summer but less busy in winter. “I fear we will end up bankrupt,” they said.

Another operator told Mr Isherwood: “Our holidaylet property is located six metres from our front door, clearly not a second home and all on the same title deed.

“We have been trading for seven years and have exceeded 182 days let in four of the seven years.”

The sector is concerned the Welsh Government has not carried out impact assessments on the consequences of the new lettings regulations – or for the proposed tourist tax in Wales.

The WTA, UKHC and PASC Uksay many family-run holiday letting businesses will close if proposed changes go ahead. The properties may then be sold to buyers from outside Wales.

The Welsh Government said its proposals were part of a wider approach to addressing the negative impact of second homes and long-term empty properties. A spokesperson said it would ‘continue to carefully consider the effect any changes have.’