But director of PASC UK Cymru Nicky Williamson said “whilst members will welcome the ability to count charity weeks again, this is nowhere near enough”.
She added: “For three years we have continually presented the Welsh government with data showing the damage caused by this policy – yet they continue to ignore the reality.
“Tourism in Wales has lost over a quarter of its overnight visitors since this policy began, yet the threshold for businesses hasn’t changed, leaving owners punished for something completely outside their control.
“Business owners are working harder than ever just to stand still, with 85% driven to discount to try to achieve the threshold.
“The 182 threshold is the problem and this must be reduced significantly.”
She explained that the consequence of not meeting the 182 day threshold is being removed from business rates listing back to council tax and a second home premium applied.
In addition, she says people are receiving backdated council tax and second home premium bills for three years to 2022/23 – which can be up to £30,000 – with immediate payment required or the threat of court summons for money often not even due.
There was also criticism from the Wales Tourism Alliance, whose chairman Rowland Rees-Evans said many operators were “discounting heavily just to reach the 182 threshold, which is obviously not sustainable in the long term”.
“If you have a three-year rolling average and you don’t achieve 182 days in year one and two, then it is highly unlikely that it will be achieved in the third year.
“This will put enormous pressure on small businesses wherever they are in Wales.”
