 By Zoe Hawkins - MWT Chief Executive Wales Tourism Week is always a big moment for our industry – a chance to spotlight the importance of tourism and to make sure rural voices are heard where it matters. This year, it’s fair to say we covered a lot of ground. And not just in miles. Raising urgent concerns – face to face We started the week at Dan-yr-Ogof, meeting with Ashford Price and representatives from Powys County Council to raise concerns around the proposed Tourism Levy. With Pembrokeshire now pulling support, we believe the economic case for this levy must be remodelled. As it stands, rural communities like ours face the highest costs – with little to gain. Once legislation is passed, consultation won’t undo the harm. We made it clear: this isn’t just a policy detail – it’s a threat to the businesses and communities we serve.  Looking at the bigger pictureOn Tuesday, I attended a Bank of England event to hear the latest economic forecasts. It was a sobering reminder of just how fragile our recovery still is – and how exposed rural, tourism-dependent areas remain. That was followed by an all-Wales session with Transport for Wales, where we pushed again for better investment in rural rail. The Cambrian and Heart of Wales lines are vital for our communities – not just for visitors. These routes connect people to work, education, healthcare and opportunity. Shaping real rural regenerationWe also met with Antur Cymru and Aberystwyth University to explore how regeneration can work in practice – not just in theory. For it to succeed, it has to reflect the realities of places like ours: seasonal businesses, long travel times, low-density populations, and a fiercely proud sense of place. Supporting specific sectorsAt the Caravan and Camping Forum for Wales, I joined discussions around the unique pressures facing holiday parks, campsites and touring businesses. Regulation, infrastructure, licensing – these are issues that affect day-to-day operations and long-term sustainability. Our message was simple: we need policy that works for the full range of tourism businesses in Wales – not just the ones with the loudest voices or city postcodes. Speaking up at the SeneddOn Wednesday, I joined colleagues from across the sector at the Wales Tourism Week reception at the Senedd. It’s always an important opportunity to meet with MSs and reaffirm just how vital our industry is – especially in regions like Mid Wales. The visitor economy here supports jobs, services, and livelihoods – and it needs support that reflects that role. Why this work mattersEverything we’ve done this week has one goal: making sure the voices of rural tourism businesses are heard, respected, and acted on. That means being in the room, asking the hard questions, and keeping the pressure on.
MWT Cymru is a not-for-profit – independent, and member-led. We don’t do this for headlines. We do it because it matters. If you're part of our network – thank you. Your support helps us show up, speak out, and stand our ground. If you’re not yet a member and you run a tourism business in Mid Wales – we’d love to welcome you. We’re stronger together.
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By Zoe Hawkins - MWT Chief Executive  As Chief Executive of MWT Cymru, I want to update our members on the work we have been doing to represent your views on the proposed Tourism Levy. This legislation, set to be debated and voted on in the Senedd in the coming months, would, if passed, be introduced in 2027. The levy proposes a flat rate of £1.25 per person per night for overnight stays in serviced accommodation and £0.75 per person per night for visitors staying in campsites and hostels. MWT Cymru submitted a consultation response on 10th January 2025 and provided evidence to the Senedd Finance Committee on 5th February 2025. A full video of the committee session is available here We have also been actively engaging with Members of the Senedd (MSs) to express serious concerns about the impact this levy will have, not just on businesses, but on the wider economy of Mid Wales.
Key Concerns Weak Economic Justification There are significant doubts over the economic case for the levy. While additional revenue generation is the stated goal, there is a real risk that the cost of implementation—both for businesses and the public sector—could outweigh any financial benefit. Moreover, the potential knock-on effects on local supply chains, employment, and overall economic activity in the tourism sector have not been fully assessed. The Welsh Government's research indicates that the levy is expected to generate approximately £33 million for the Welsh economy. However, this figure is based on the assumption that all 22 local authorities implement the levy. The cost of establishing, enforcing, and managing the levy involves two sets of administrative expenses—one at the local authority level and another through the Wales Revenue Agency, which is responsible for collecting the levy. These administrative costs could significantly reduce any net financial benefit, raising further concerns about the feasibility and effectiveness of the levy - not to mention the economic loss. Lack of a Level Playing Field One of the most pressing concerns is the absence of a statutory registration system for all tourism accommodation providers in Wales. Without such a system in place, it is impossible to accurately determine the number of businesses operating, particularly as many currently remain off the radar. This lack of transparency undermines fair competition and creates significant enforcement challenges. Furthermore, there is no clarity over who will be responsible for enforcing the levy for unregistered businesses. The Wales Revenue Agency (WRA) has not costed this enforcement and we don't believe the local authorities have either. This raises the question: who will ensure compliance? Without clear enforcement measures, there is a risk that only legitimate businesses will bear the burden while unregistered operators continue to operate unchecked, further skewing the playing field. For the levy to be implemented fairly, a robust registration and enforcement framework must first be established to ensure that all businesses are contributing equally, rather than penalising those who are already operating within the legal framework. Additional Burdens on Micro-Businesses Over 90% of tourism businesses in Mid Wales are micro-businesses, often run by families who already face significant administrative and financial pressures. Adding further bureaucracy and costs at a time when businesses are grappling with rising costs, increased national insurance costs, and broader economic uncertainties is deeply concerning. Lack of Investment to Offset Projected Visitor Decline The Welsh Government has acknowledged that this levy could lead to a 2-10% reduction in visitor numbers, yet there is no clear commitment to reinvest revenue into areas that will be most affected, such as Mid Wales. This means businesses will bear the cost of lost visitors without any guarantees of additional support or infrastructure investment to mitigate the impact. Unfair Financial Burden on Certain Businesses The proposed levy structure disproportionately affects budget-conscious travellers, such as those using campsites and hostels. Visitors staying in a tent or a bunkhouse in Mid Wales will pay a significantly higher percentage of their accommodation cost in levy than those staying in high-end hotels in Cardiff or Swansea. This is neither fair nor sustainable for businesses in rural areas where tourism is vital to local economies. Misguided Comparisons to Other Destinations Throughout discussions, comparisons have been made to destinations like Catalonia, which has a well-established tourism tax. However, this comparison fails to recognise that Catalonia benefits from four international airports, a high-speed rail network, and 20 million international visitors annually. Wales, by contrast, welcomes 800,000 international visitors a year and lacks comparable transport infrastructure. Mid Wales, in particular, has long suffered from underinvestment in connectivity and infrastructure, making the region especially vulnerable to any policies that discourage domestic or international visitors. Any decisions made on a national scale must consider the whole of Wales, not just the major cities. Wales Taxing Children? A key issue that has not been adequately addressed is that the levy applies to all visitors, including children. This raises reputational concerns. Is this truly the message we want to send about Welsh hospitality? MWT Cymru: Representing Your Voice MWT Cymru is dedicated to ensuring that tourism businesses across Mid Wales are properly represented. We have been actively engaging with policymakers, providing evidence to committees, and making sure your concerns are heard at every level. We extend our sincere thanks to all members who have contributed valuable insights—your input is essential in shaping our response. As a regional organisation, our mission is to protect and support the visitor economy in Mid Wales. We will continue to challenge policies that threaten our industry and advocate for solutions that benefit businesses and communities alike. If you would like to discuss the Tourism Levy or share your views, please get in touch. We are an independent organisation that receives no core funding. If you know of any businesses that would like to support the work we do, please encourage them to reach out. Our ability to represent our industry and protect our rural economy relies on the continued support of the business community. Thank you Zoe Hawkins Chief Executive, MWT Cymru [email protected] A full copy of MWT Cymru’s consultation report can be found here: Full Consultation Response
A Reflection on Our Meeting at Lake Vyrnwy: Supporting the Future of Mid Wales
By Zoe Hawkins, Chief Executive, MWT Cymru (Mid Wales Tourism) On the 2nd and 3rd of October, we had the opportunity to attend two important meetings at Lake Vyrnwy with the Senedd's Economy, Trade, and Rural Affairs Committee. These discussions allowed MWT members and industry leaders to speak directly to decision-makers about the unique challenges facing Mid Wales. I’d like to personally thank everyone who attended the evening and breakfast meetings, as well as those businesses that provided feedback and shared their concerns prior to the meetings. I know it’s no small thing to step away from your businesses - especially in the current climate - and your dedication speaks volumes about the passion we all share for the future of Mid Wales. A special thanks to Anthony Rosser and all the staff at Lake Vyrnwy Hotel for hosting the events. Evening Discussion: Industry Leaders Come Together The evening meeting provided industry leaders from across the region with a rare opportunity to speak candidly about the pressing issues we face. A major topic was the introduction of the 182 rule for self catering, and the proposed closure of three Natural Resources Wales (NRW) visitor centres, which could significantly impact our tourism economy. These centres attract hundreds of thousands of visitors each year, supporting local businesses and injecting vital income into our communities. The closure of these sites exemplifies how decisions made by one department can have unintended ripple effects across other sectors, often without consideration of the broader impact. The conversations reinforced the need for greater communication between Welsh Government departments and a better understanding of how interconnected industries like tourism and farming are in Mid Wales. Statutory Licensing and Tourism Tax One key issue that will likely come before the committee is the introduction of statutory licensing or registration for all tourism businesses. While there is support for a registration scheme, concerns were raised about the potential shift to a full licensing system and the heavy burden it could place on small, family-run enterprises. Without adequate enforcement resources, there’s a risk that some businesses will continue to operate underground, exacerbating an already uneven playing field where compliant businesses bear additional burdens. We support a 'light touch' registration scheme, ensuring that resources are allocated to enforce consistent regulations for all operators. Statutory licensing is also expected to act as a precursor to the proposed tourism tax, where registered businesses will be responsible for collecting this tax. If enforcement is insufficient and some businesses remain unregistered, legitimate operators will again bear the brunt of compliance. Breakfast Meeting: Member Businesses Share Their Concerns The following morning’s breakfast meeting offered an intimate setting for member businesses to share their concerns directly with committee members. These businesses are the backbone of our rural economy, yet they often feel the most impact from policies that don’t take into account the unique challenges of operating in Mid Wales. The Bigger Picture: Cumulative Effects and Underinvestment A recurring theme throughout both meetings was the cumulative effect of policies across various sectors. From recycling regulations and the 182-day rule for self-catering businesses, to energy limitations, underinvestment in infrastructure and transport links. The closure of NRW sites is just one example of how disconnected decisions can have profound effects on our industry. It was also emphasised that Mid Wales is unique and cannot be treated with the same policies that may work in urban centres or regions dealing with over-tourism. Our economy is fragile, our tourism season is short, and our businesses are often small and family-run. Policies must be tailored to reflect this reality if they are to support the long-term sustainability of our communities. A Call for More Engagement Both the evening and breakfast meetings highlighted the need for greater engagement between decision-makers and those working on the ground. True understanding of the challenges we face in Mid Wales can only be built through direct interaction, and I hope the committee took away the message that our region must be treated as a distinct area with its own set of challenges and opportunities. More visits like this are essential to show policymakers the real issues that our businesses, communities, and industries face daily. Only by visiting the region and speaking with those who live and work here can they gain the insights needed to make informed decisions that benefit our rural economy. As the old saying goes, "those closest to the problem are often closest to the solution." The voices of Mid Wales must be heard if we are to shape policies that support - not hinder - our future. Looking Ahead Once again, I want to thank everyone who attended and provided feedback. Your voices are invaluable, and it’s only through continued collaboration that we can support our industry and our communities. The decisions being made now will shape the future of our region for generations to come. While politicians may come and go, the policies they implement leave lasting impacts on the businesses, people, and communities of Mid Wales. As Chief Executive of MWT Cymru, I am committed to ensuring that our voices continue to be heard. Let’s keep these important discussions going, and together, we can ensure that Mid Wales remains a vibrant, thriving region for years to come. |
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