As of April 1st, 2023, the Welsh government has implemented a new 182-day rule on furnished holiday lets (FHLs). This rule has the potential to disrupt the Welsh tourism sector on an unimaginable scale. Many FHLs are operated as small businesses by families, with some being just annexes to their homes.
Despite calls from many tourism operators for exemptions, they were granted very few, as the Welsh Government appeared unwilling to listen. This rule is causing distress to many in the tourism sector across Wales. The Welsh Conservatives, including Tom Giffard, Shadow Minister for Tourism, and Sam Rowlands MS, have raised this issue in the Senedd on multiple occasions. The Minister has been deemed too dogmatic in her views to be willing to listen.
Research conducted by the Welsh Conservatives has uncovered the extent to which the new laws are impacting FHLs across Wales, as we spoke to many individuals and organisations that are feeling the brunt of it, three of whom felt able to come forward and give public testimony.
PASC Wales (Professional Association of Self-Catering Operators) represents holiday lets across Wales. A spokesperson from PASC Wales had this to say:
“FHLs would be delighted to be able to guarantee 182 days of occupancy. Some, undoubtably can in areas of exceptionally high demand, but this is simply not the case in the vast majority of rural areas in Wales that suffer from under-tourism.
“We want FHLs to pull out all the stops, but this occupancy threshold will be out of reach for too many, regardless of how hard they try. There is still no rational explanation as to why the new thresholds, particularly the 182-day threshold, was chosen.”
Marnie Slade is the owner of a Capel Cartref accommodation. Marnie converted the premises herself from a derelict chapel to a holiday let. The accommodation is even promoted by Welsh Government-run Visit Wales, Labour are simultaneously promoting and damaging her holiday let. She said:
“The impact of the 182-day threshold, (to be paid retrospectively) has caused untold stress. In order to gain more bookings, I have considered reducing the rates significantly, but then if I still fail to reach the threshold, I will end up with a huge bill with even less funds in the account.
“I have always worked hard at ensuring visitors to Capel Cartref have a positively memorable experience. Airbnb show 66 reviews, only one of which is 4 star, the remaining are 5 star.
“We bring in visitors to the local area, they eat in restaurants and use the pubs, the five bedrooms means large family reunions and lots of people who spend their money in the local vicinity.
“We will be 48 nights short despite having a new website, joining ‘FreetoBook’, putting extra adverts out to Midweek Breaks, etc. Spending lots of time advertising on social media.
“The speed that this threshold was introduced, feels totally unfair. There is a difference between owning a second property and leaving it empty. I have never felt that to be ok, but taxing us this way is putting people out of business. If the rate goes to 300%, there will be no point in continuing on.”
Ian Pattinson of Discover Walking Pembrokeshire has also found the new 182-day rule to be impacting his daily life. He said:
“Like my own, many self-catering properties cannot be sold separately: many are unsuited for use as permanent dwellings and many are away from the areas of employment. So they cannot contribute positively to the housing stock issue.
“I read many of the pleading inputs offered by small, rural, self-caterers during one of the consultation phases and was deeply touched by the emotion voiced by those who saw only the end of the road for their much loved, family businesses. The Welsh Government are not listening and seem hell bent only on raising money and damn the consequences.
“On a personal note, I might be close to the 182-occupancy level but that does not mean that I am not deeply affected by it or that it is not impacting my whole quality of life. Every day it occupies my mind, I count the bookings I have and wonder if/when the next booking might arrive.
“At best these spiteful, callous, punitive, and poorly targeted measures will drive many legitimate businesses to the wall and at worst, I genuinely fear that the mental anguish caused by the very real threat of Premium Council Tax will push some, over the edge.”
Sam Rowlands MS, Chair of the Senedd Cross-Party Group on Tourism, has raised these issues in the Senedd, regularly challenging ministers. Speaking during a Welsh Conservative debate on annulling the regulation on the 182-day rule, he said:
“It's clear that this simply won't be possible for many, and Welsh Government actions will be putting people out of business and out of work.
“It's clear that this Order has sent absolute shockwaves through the industry, with many legitimate businesses not knowing what to do. We've heard today that their mental health and well-being has taken a huge hit.
“The Welsh Government is here and should be here to support businesses to allow them to thrive and not damage them.”
Tom Giffard MS, Welsh Conservative Shadow Minister for Tourism added:
“We've been fighting this 182-day occupancy rule since the beginning. It's ill-thought-out, based on anti-tourism dogmatism rather than actually helping to solve the housing crisis.
“The stories from those in the holiday letting business are soul-crushing. People with a passion for wanting to show the world the beauty of Wales are subject to unimaginable stress as they attempt to fulfil Labour's occupancy demands.
“Labour's blanket 182 occupancy demands are top-down bureaucracy. They did not listen to the tourism industry, they did not listen to the families running the accommodations, they did not listen to areas of Wales that suffer from under-tourism, they did not listen.”
