3. Statement by the Minister for Economy: Statutory licensing scheme for all visitor accommodation in Wales

Part of the debate – in the Senedd at 3:06 pm on 15 November 2022.

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Photo of Mabon ap Gwynfor Mabon ap Gwynfor Plaid Cymru 3:06, 15 November 2022

(Translated)

There is no doubt that tourism is an important contributor to the economy. Visitors spend £17 million a day, and that equates to over £6 billion a year, in the economy here. But this is just part of the picture, because what use is a strong economy at the expense of our communities? And if this money flows out of our communities, and, indeed, out of Wales, what use is that? We must pursue sustainable tourism, which is appropriate to the communities and brings them economic and social benefits. That is, therefore, what is at the heart of this licensing system that we're talking about today, and that's why we as a party have called for this to be part of the co-operation agreement between the Government and us in Plaid Cymru.

I have previously spoken on the floor of this Siambr about the huge growth in the short-term holiday lets sector, particularly via platforms such as Airbnb, Vrbo and others. The Bevan Foundation published an excellent report on the impact of Airbnb on our communities earlier in the autumn, demonstrating that over 14,000 of the properties on this platform are appropriate to be used as homes for families to live in. Indeed, the report noted that the properties on Airbnb that are appropriate for people to live in as long-term homes equate to a third, almost, of the private housing stock in Gwynedd, and one in five of properties in the private housing stock in Ynys Môn and in Ceredigion.

The sector has grown beyond all reason; that, truth be told, is what has undermined the holiday accommodation sector in Wales—a sector that has been part of the visitor offer here for generations but is now under threat from these online platforms. And, of course, this is a central part of the steps that are being taken to tackle the gentrification that has been taking place in our coastal and rural communities, as we see up to 40 per cent of properties in some communities lying empty for large parts of the year.

Of course, some of the concerns expressed with regard to these steps are based on the lack of full data available to us in terms of definitions and so on. So, does the Minister agree that, when this latest element is operational, the richer information that we will have about what constitutes genuine holiday accommodation and what is a second home will allow us to better target taxation measures and so on in future? Anyone who has truly engaged and consulted with the holiday accommodation sector, as I have done, will know that the sector has been calling for a licensing system for some years. Those providers who operate through effective and principled companies, like Daioni in my constituency, have to comply with strict rules—rightly so—to ensure that their guests receive the best and safest possible experience. Unfortunately, the same is not true of platforms such as Airbnb and Vrbo. Anyone can advertise a property on these platforms, and undercut and undermine those conscientious providers in the sector who strive to deliver the best possible provision.

A licensing system will drive up the standard of provision and will ensure that visitors who come to Wales have the very best possible experience on holiday here, with providers who have clearly invested in their businesses and are committed to the safety of their visitors. The requirement to have a licence and to maintain it will provide communities and visitors with greater control. We would wish to see a clear mechanism as part of the detailed proposals for a licensing system to enable communities to raise complaints about nuisance properties—for example, a property on a street that has been turned into Airbnb accommodation that is affecting local amenities due to noise or waste. Can you, therefore, confirm that the intention is that a mechanism of this kind to deal with concerns will be put in place when things go wrong? Thank you.