The Professional Association of Self-Caterers (PASC) UK has expressed grave concern over the Welsh Government’s continued failure to support the tourism and hospitality industry, following the publication of the Wales Tourism Business Barometer – ‘June 2025 Wave’ - which reveals a significant downturn in visitor numbers, growing pessimism among operators, and a sector under increasing pressure.

PASC UK, which represents the UK’s professional self-catering sector, has stated, that according to the Welsh Government’s own data:

  • 47% of self-catering operators have seen a fall in visitor numbers this year.
  • Only 16% of tourism businesses feel “very confident” they can operate profitably in 2025.
  • Over one in five businesses cite Welsh Government policy as a direct cause of falling visitor numbers.
  • The self-catering sector is facing the brunt of the downturn.

This comes on top of another Welsh Government report on GB Domestic Tourism, published in April 2025, which showed that overnight stays in Wales fell by an alarming 29% between 2022 and 2024.

“These reports lays bare the economic damage being inflicted on Welsh tourism,” said Nicky Williamson, PASC UK’s Lead Policy Advisor in Wales.

“What we are witnessing is the avoidable erosion of a vital sector, one that sustains jobs, communities, and Welsh culture. The figures are shocking, but not surprising to those of us on the ground.”

“The 182-day rule, which requires properties to be let for at least 182 days to qualify as a holiday let, is proving especially damaging. Many small businesses are being pushed to unsustainable levels of discounting in an attempt to meet this threshold, others have given up altogether.

“This is not a policy designed to support genuine businesses, it’s a punitive approach that makes it harder for responsible operators to stay afloat,”

“It’s devastating rural and coastal communities without achieving its aims,” Williamson added.

Other concerning policy developments include:

  • The planned Tourism Levy, despite minimal projected revenues and evidence it could cost Wales up to 730 jobs.
  • The imposition of Article 4 planning restrictions in Gwynedd, further eroding confidence and flexibility in the sector.

Conservative MP and Shadow Secretary of State Mims Davies has given her support to PASC and the Welsh Tourism sector, stating: “Wales is already one of the most expensive destinations in the world due to its ever-increasing tax regime from Labour governments in London and Cardiff.

“Instead of adding burdens, the Welsh Government should be working with businesses to build a thriving, year-round visitor economy. These figures prove current policy is failing and there must be an urgent rethink.

“We have committed to scrapping the Tourism Levy once and for all. We will always back Wales’s diverse and vibrant tourism industry,” she added.

PASC UK is now calling for:

  • An immediate economic impact assessment of the 182-day threshold, and a lowering to 105-days
  • A pause and reassessment of the Tourism Levy based on proper consultation and robust data
  • Clear guidance and safeguards around Article 4 implementation to avoid further market instability
  • And a recovery strategy to get tourism growing again in Wales