Thank you for your email regarding the significant challenges posed by the Welsh Government’s 182-day threshold for holiday lets. I commend your dedication to running a professionally managed holiday let that plays a vital role in supporting both our local and national tourism economy.
I fully recognise the immense pressure this policy places on small businesses like yours, particularly given the 23% reduction in holiday stays and the cost-of-living challenges affecting business owners and visitors alike. The data you’ve shared, including the PASC UK Cymru Business Impact Survey, highlights the concerning strain this policy places on the sector's sustainability.
I share your frustration that the threshold disregards the year-round effort, investment, and costs involved in managing holiday lets, focusing solely on occupancy figures while neglecting essential activities like maintenance, administration, and marketing.
The tourism sector is vital to the Welsh economy, yet the 182-day rule fails to support its growth. For example, the number of tourists visiting Wales dropped by 33% between 2019 and 2022. While there was a partial recovery in 2023, figures remain 13% below pre-pandemic levels, which only underscores the need for supportive policies rather than restrictive measures.
There are up to 120,000 empty homes in Wales compared with 11,300 self-catering holiday lets. Instead of imposing higher tax burdens on hardworking holiday let operators, the Welsh Government should focus on bringing empty homes back into use and addressing the root causes of the housing crisis.
My colleagues and I have long called for this approach and continue to press for practical solutions that balance housing needs with the vital contributions of the tourism sector.
Our Shadow Minister for Tourism, Samuel Kurtz MS, has already written to the Cabinet Secretary for Finance, Mark Drakeford, to advocate for a review of the 182-day threshold. Disappointingly, in his reply, the Finance Secretary confirmed there are no plans to review the policy. As highlighted in this article: https://www.tenby-today.co.uk/news/182-day-review-refusal-shows-welsh-governments-arrogance-739361, this stance demonstrates a concerning unwillingness to address the real challenges facing holiday let operators. This refusal only strengthens the case for an urgent Economic Impact Assessment and a fair reconsideration of the threshold.
We Welsh Conservatives have called for the threshold to be reduced to 105 days, initiated votes in the Senedd to scrap the current policy and are continuing to push for a comprehensive review of its impact.
Thank you again for reaching out to me. Please be assured that I remain fully committed to advocating for a fairer approach that supports the tourism sector, which is so critical to our communities. I will keep you updated on any developments and the responses I receive from the Welsh Government.