Many self-catering holiday cottages and other self-catering accommodation are fearing the worst if a new lettings regime is introduced in Wales. They feel they will have to close and critics of the proposal to clamp down on second homes have said this will "decimate" Wales's tourism industry.
Currently, the National Showcaves Centre for Wales at Dan Yr Ogof in the Brecon Beacons has 20 self-catering units but they are not sure they will meet the new letting requirements. The chairman of the National Showcaves Centre, Ashford Price, said there would be "serious economic damage" if the proposals were enforced, NorthWalesLive reports.
He went on to say that many Welsh businesses will have "no option" but to close down their business and let go of staff. Ashford also said the proposals are "anti-English" and will give England and Scotland a big competitive edge in the tourism industry, leaving Wales behind.
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He said: “Wales will not be able to compete with similar self-catering operations in England and Scotland. The only way they could fund the increased bills would be to put prices up at a time when families are facing the biggest cost of living crisis since the 1950s. Many families are looking for competitive prices in order to have a holiday at all.”
A survey by the Wales Tourism Alliance (WTA) found that 84% of self-catering operators in Wales believe they won't be able to continue their business if the lettings laws are introduced. In a joint statement with UK Hospitality Cymru (UKHC) and the Professional Association of Self Caterers UK (PASC UK), the WTA called on the Welsh Government to amend its plans.
They said: “As a tool to bring properties back into a market which is affordable to local people, it will not work. Rather, it will reduce local owners’ ability to earn an income and cause a decline in secondary jobs in hospitality, retail, house maintenance, and cleaning. It will not safeguard the Welsh language as these businesses will be lost to wealthier outsiders prepared to meet the higher costs of having a second home or self-catering businesses in Wales.”
In Cardiff there are proposals to raise the occupancy thresholds to at least 182 days per year. Not meeting this threshold could see holiday-let business owners have to pay a second homes Council Tax premium of up to 300%.
Ashford explained how as now 14% of Wales's farms have some form of tourism element, often part-funded by the Welsh government, the rural economy is likely to be hit hard. He 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."
The proposed plans mean that to qualify for business rates self-catering properties would have to be available for at least 252 days and occupied for 182. This is a big jump up from the current law where the properties only have to be occupied for 70 days.
A Welsh Government spokesperson said: “The proposals are part of our wider approach to addressing the negative impact of second homes and long-term empty properties in many Welsh communities. The change in criteria is intended to ensure properties involved are being let regularly as part of genuine holiday accommodation businesses, making a substantial contribution to the local economy.
“We consulted on the development and implementation of these plans, and will continue to carefully consider the effect any changes have.”
