Thousands of jobs in the tourism sector in Wales are at risk due to what has been described as ‘brutal’ holiday let rules, according to the Professional Association of Self Caterers (PASC). PASC has raised concerns that many of its members are being forced to sell their properties as they are no longer financially viable under the current regulations. The Welsh government, however, has defended the rules, stating that they are aimed at ensuring a fair contribution from property owners in areas where they have homes or businesses.
One of the key changes that has impacted holiday lets in Wales is the shift in criteria for lower business rates. Previously, properties needed to be available for let for at least 140 days, with 70 days actually let, to qualify for the lower rates. In contrast, the new rules in Wales require properties to be available for at least 252 days, with 182 days of actual let. Failure to meet these requirements could result in properties being classified as second homes and subject to council tax, which could include additional premiums in certain areas.
Despite the government’s intentions to improve housing availability for local residents, concerns have been raised by operators like Nicky Williamson, who emphasized the challenges faced by self-catering property owners in meeting the new threshold. The potential consequences of job losses in the tourism sector, impacting businesses such as pubs and cafes, have also been highlighted. With over 150,000 people employed in the sector, the fear of job losses looms large if the current regulations remain unchanged.
While some believe that the new rules will help address housing availability issues for local residents, others, like holiday let operator Karen Jones and Welsh language campaigner Jeff Smith, have expressed reservations about the impact on their businesses and the wider community. The mental health implications of not meeting the 182-day rule have also been brought to light, with operators reporting high levels of stress. As the debate continues, stakeholders are grappling with finding a balance between supporting the tourism industry and addressing the housing needs of local communities
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