Holiday let operators in Wales have claimed that the market has reached saturation point. As more holiday lets open, it's becoming increasingly difficult to make a profit in an industry already grappling with rising costs and poor weather forecasted for 2024, they have claimed.
The new 182-day occupancy rule is adding to the challenges, as failure to meet this can result in hefty additional costs. This has led some operators to decline short-break bookings despite a surge in demand from consumers who prefer these over traditional week-long stays.
A limited survey by the Wales Tourism Alliance revealed that four per cent of holiday let operators in Wales are now merely surviving, while 12 per cent are performing poorly and 40 per cent are experiencing mixed results. Despite an eight per cent increase in visitors last year compared to 2023, profits were down eight per cent compared to 2019.
The 182-day rule, escalating costs and an influx of holiday let owners entering the Welsh market were identified as the biggest challenges. One operator shared in the survey: "Our occupancy was well down in 2024. One major contributor is the 10 new self catering units/properties that opened this year within a mile of us.".
Another added: "The self-catering market is saturated with and an over-supply [of lets]. The sector has been allowed to run out of control by the government for far too long. Now it's in a bad state", reports North Wales Live. Since April 2023, holiday property owners in Wales have been hit with a new rule requiring them to rent out their properties for at least 182 days per year, a significant jump from the previous 70-day threshold. If they fail to meet this target, they'll be subject to residential council taxes instead of business rates, which can be substantially higher, especially in areas with additional council tax premiums.
