The Senedd’s Economy, Trade and Rural Affairs Committee has raised serious concerns about the Welsh Government’s approach to introducing the Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill, warning that the accelerated timetable has limited the opportunity to properly examine the proposals.

The Committee believes this rush risks undermining confidence in the tourism sector and cautions against hurried law-making processes becoming the norm for non-emergency laws.

In its Stage 1 report, the first step in the law-making process where a committee looks at whether the overall purpose of a Bill is sound, Members of the Committee support the general principles of the Bill, which aims to promote tourism and introduce a licensing scheme for visitor accommodation. However, Members say the short timeframe has left businesses and tourism operators with little chance to have their say and left key details unresolved.

Andrew RT Davies MS, Chair of the Economy, Trade and Rural Affairs Committee said: “Tourism is vital to Wales’ economy, but legislation of this scale must be done properly.

“The tourist sector in Wales has faced a large amount of legislative and regulatory change this Senedd term.

“It became clear to the committee in our evidence sessions that the sector was struggling with policy and legislative fatigue.

“We heard from businesses that they are suffering from regulation overload, with a host of new rules introduced in recent years.”

“The industry already faces many challenges, so any additional regulation must be well considered and crafted to ensure any additional burden is manageable and proportionate.

“I am especially concerned about the rushed timetable for this Bill as it has meant people working in the industry have had little opportunity to feed in their views, and the Senedd has not been able to give the proposals the level of consideration they deserve.

“We support the principle of improving standards and creating a level playing field, so that all accommodation providers, from holiday lets to short-term rentals, operate under the same clear rules.

“The Welsh Government must now work hard to regain the confidence of the sector and ensure the detail is right.”

The Committee’s report highlights:

Insufficient time to review the proposals: The seven-week timetable was “unusually short” and should not set a precedent for future non-emergency legislation.

Implementation uncertainty: Key questions remain about enforcement responsibilities, training requirements, and the use of technology to process licences.

Concerns from tourism businesses: Many fear additional costs, administrative burdens, and unintended consequences such as reduced accommodation supply.

What the Committee is calling for?

Licensing should only start if the next Senedd approves it, and no later than the end of the next term.

A review of the scheme by April 2034 should be written into the Bill.

The Welsh Government must clarify enforcement roles and the complaints process.

Licences should last longer than one year to give businesses certainty.

Fee-setting rules should be fair and subject to Senedd approval.

Andrew RT Davies added: “This Bill will shape the future of Welsh tourism. It’s essential that the Welsh Government listens to the industry, addresses the gaps we’ve identified, and ensures the scheme is fair, proportionate and workable.”

The Stage 1 report will now be debated in the Senedd. Members of the Senedd will decide whether the Bill should move to Stage 2, where detailed changes and amendments can be made before it becomes law.