MSs say cumulative policies risk pushing long-standing operators to the brink – Welsh Government insists reforms will strengthen sector in the long term
WEST WALES’ visitor economy is heading into one of its most challenging off-seasons in recent memory, senior politicians have warned, as small accommodation providers face rising costs, tightening consumer demand and a raft of new regulations arriving at once.
Preseli Pembrokeshire MS Paul Davies and Carmarthen West and South Pembrokeshire MS Samuel Kurtz say the region’s long-standing tourism operators – many of them small family-run B&Bs, holiday cottages and rural retreats – are now dealing with “cumulative pressures” that are beginning to feel overwhelming.
Their warnings follow a mixed summer season across Pembrokeshire, with operators reporting decent spells of weather but noticeably weaker footfall during the shoulder months, shorter stays, and more last-minute cancellations as households continue to cut back.
Cumulative pressures hitting at once
Businesses across West Wales say they are struggling to absorb multiple financial and regulatory changes arriving in quick succession.
As well as the Welsh Government’s plans for a tourism levy and the new all-Wales registration scheme for holiday accommodation, providers are adapting to council tax premiums linked to the 182-night threshold for self-catering properties.
These measures are landing at the same time as:
rising wage bills following this year’s minimum wage uplift,
higher employer National Insurance contributions,
utilities and commercial insurance costs that remain far above pre-pandemic levels,
and a broader slowdown in UK domestic holiday spending as the cost-of-living crisis continues.
Many smaller operators rely on strong summer takings to carry them through winter. Several have told The Herald the convergence of pressures now feels like a “perfect storm”, with some trimming staff hours, postponing maintenance or delaying planned investment until the outlook stabilises.
Tourism bodies say the effects are especially sharp in Pembrokeshire, where thousands of jobs – from Tenby and Saundersfoot to St Davids, Newport, Solva and the Preseli villages – depend on a reliable and healthy visitor economy.
There is also concern about the impact on casual hosts and small-scale providers who increase capacity during major events such as Ironman Wales, Long Course Weekend, the Bluestone Marathon and Pembrokeshire’s packed summer festival calendar.
Paul Davies MS: “Ministers must listen to those on the ground”
Preseli Pembrokeshire MS Paul Davies said operators have been “clear and consistent” about the cumulative impact of rapid policy change.
“Tourism businesses in West Wales have been clear about the challenges they face and yet rather than providing support, governments at both ends of the M4 have introduced measures that have added further pressure to the sector,” he said.
“I have consistently called on the Welsh Government to engage constructively with tourism operators and to work collaboratively on solutions that will support local tourism businesses.
“Ministers must listen to those on the ground, remove unnecessary regulations, and deliver practical support that ensures the long-term sustainability of the tourism sector in Wales.”
Davies said several business owners had contacted him to express growing anxiety about the winter period, with some already scaling back operations in the face of uncertainty.
Samuel Kurtz MS: “Tourism is the backbone of the West Wales economy”
Carmarthen West and South Pembrokeshire MS Samuel Kurtz said the timing of recent changes risks weakening a sector that remains one of West Wales’ strongest economic pillars.
“Tourism is the backbone of our economy in West Wales, and as we enter the quieter months many local businesses will be feeling the pressure more than ever,” he said.
“Instead of adding layers of costly red tape, the Welsh Government should be supporting operators who are already battling the 182-night threshold, rising wage bills and increased NI costs, all on top of reduced footfall as the season ends.”
He added: “The cumulative effect of these changes is taking a devastating toll on the tourism industry. Ministers must pause, listen, and rethink before more long-standing businesses are pushed to the brink.”
Welsh Government response and broader context
Welsh ministers maintain that the reforms are necessary to modernise the sector, protect communities, and ensure that tourism remains sustainable in the long term.
The all-Wales registration scheme, they argue, will help identify poor-quality accommodation, improve safety standards, and give councils better data when making decisions about housing pressure in coastal and rural communities.
The tourism levy, they say, simply brings Wales in line with many European nations, with revenue raised locally to support services relied upon by visitors – from car parks and toilets to coastal paths and waste collection.
A Welsh Government spokesperson has previously said the seasonal nature of the sector “requires a sustainable model that works for communities as well as visitors and businesses”, with reforms forming part of a wider plan to “balance the needs of residents, workers and the environment”.
Industry calls for “joined-up thinking”
Tourism associations across Wales have repeatedly stressed that the challenge lies not with any single measure but with several arriving simultaneously.
Some operators have already exited the market citing an unfavourable environment, while others are waiting to see whether domestic holidaymakers will return in greater numbers next year or whether the shift towards cheaper overseas breaks will continue.
With winter now settling in, the coming months will prove a critical test of resilience for a sector that remains central to Pembrokeshire’s rural economy, its employment base, and its cultural identity.
