The Welsh Parliament has approved legislation requiring all holiday let providers and tourist accommodation operators in Wales to register with a national licensing system, despite concerns from industry representatives about increased costs and regulatory burden.
The Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill forms part of the Welsh Government’s 2021-2026 programme, which committed to “cap the number of second homes, bring more homes into common ownership and licence holiday lets”.
Registration and licensing requirements
Under the new framework, the Welsh Revenue Authority will maintain a public register of all self-catering accommodation, including details of property type and location. All providers and anyone advertising accommodation on their behalf must display a valid premises registration number in their marketing materials. Failure to comply may result in fixed penalty notices.
Government estimates indicate the average annual licence will cost approximately £172. Properties not currently meeting safety standards – including gas and electrical certification, smoke and carbon monoxide alarms – could face additional costs of around £556. A further £500 may be required for properties lacking appropriate insurance cover.
Industry response
North Wales Tourism has expressed concern that the legislation could impose “another layer of regulatory burden on an industry already facing unprecedented challenges”. Questions were raised during the Bill’s parliamentary passage regarding the implementation timeline and operational details.
Mark Drakeford, the minister responsible for the legislation, told Wales Online the measures respond to the “rapidly changing nature of the industry”. He stated: “I am pleased this Bill has passed. It’s a significant step towards attracting visitors to Wales, knowing that accommodation meets the standards they would expect.”
The legislation now moves to implementation phase, with all holiday let operators in Wales required to comply with the new registration and licensing requirements.
