Welsh Tourism at a Crossroads: Challenges and Opportunities for Rural Wales

Tourism remains a cornerstone of the rural Welsh economy, bringing in nearly £5 billion in 2023 alone. With its unique blend of natural beauty, cultural heritage, and hospitality, Wales attracts millions of visitors annually. However, a wave of new policy changes and planning restrictions is now threatening the viability of this vital industry.

Last Wednesday, Jacqui Pearce (External Affairs and Comms) CLA Cymru was present at the official launch of Wales Tourism Week at the Senedd. We joined the Cabinet Secretary for Economy, Energy and Environment, Rebecca Evans MS who leads on Tourism for the Welsh Government, as well as the Chair of the Cross Party Group on Tourism, Sam Rowlands MS; alongside members of the Welsh Government’s Tourism Team. This gathering brought together key voices from across the sector and reaffirmed the strategic importance of tourism to rural and national prosperity as well as our strong relationships.

The discussions throughout the evening underscored both the significance of the sector and the pressing need for a clearer policy framework that supports sustainable growth. CLA Cymru was able to highlight firsthand the real-world impacts of recent legislative changes, the burdens faced by small operators, and the potential damage to diversification efforts in rural areas.

One of the key issues with tourism in Wales are the siloed policy approaches. With multiple new criteria with little holistic review of impact across the sector. Whilst these policies may have been conceived in good faith, their impact on the sector is seen by many to be negative.

182 Rule

By example, recent changes to self-catering accommodation criteria mean that to qualify for business rates, properties must now be available for 252 days and let for 182 days per year. Properties not meeting these thresholds face council tax charges, with some local authorities imposing premiums up to 200%. Such measures, introduced without robust impact assessments, pose significant challenges for operators in seasonal and remote locations.

Visitor Levy

Meanwhile, the newly approved Visitor Levy allows local authorities to charge overnight guests, with a standard rate of £1.25 per person per night. CLA Cymru's lobbying ensured exemptions for under-18s and gained commitments to fair enforcement and local input. However, concerns persist about the levy’s economic impact, with projected sector losses of £47.5 million and potential implementation costs far exceeding revenue.

Planning Restrictions Threaten Flexibility

In Pembrokeshire Coast National Park, the revocation of permitted development rights now requires full planning permission for temporary campsites. This change strips rural businesses of the flexibility needed to diversify and adapt, adding costly bureaucratic hurdles.

National Park Proposals Raise Local Concerns

The proposal to designate the Clwydian Range and Dee Valley as a National Park has sparked significant opposition. While increased tourism is a possibility, many fear it will come at the cost of planning flexibility and economic viability. CLA Cymru highlights the need for transparency and rigorous impact assessments before any such designation proceeds.

A Call for Smarter Policy

Tourism supports over 159,000 jobs in Wales and constitutes 11.8% of national employment. It is essential that policies support this economic engine rather than hinder it. CLA Cymru urges policymakers to adopt tailored approaches that distinguish between genuine tourism businesses and second-home ownership, maintain planning flexibility, and conduct thorough rural impact assessments.

Championing Rural Tourism

CLA Cymru continues to advocate for a balanced, evidence-based approach to rural tourism policy . From influencing legislation to supporting local businesses, the organisation is at the forefront of ensuring that tourism remains a sustainable, vibrant part of rural Wales.

We are proud of our strong working relationships with partner organisations such as PASC UK, the Wales Tourism Alliance, and UK Hospitality Cymru. These collaborations are essential as we navigate an increasingly complex and challenging policy environment. Through coordinated advocacy and shared insights, we work to ensure that policy reflects the needs of those delivering rural tourism on the ground.

The collective voice we presented at the Senedd made clear that while the sector is resilient and adaptive, it cannot thrive under disproportionate regulation and a policy environment that lacks nuance. CLA Cymru will continue to represent rural tourism operators robustly, ensuring that policies support growth, protect livelihoods, and promote Wales as a destination of choice.

Tourism in rural Wales is not just an economic driver, it is a way of life, deeply interwoven with our communities, landscapes, and cultural identity. With the right policy mix and cooperative working across sectors, it can continue to be one of our nation’s greatest strengths.