Gwynedd sees declining tourism due to high taxes

Tourism in Gwynedd, a coastal region in north-west Wales, is facing a severe decline due to a new tax on second homes. Since 2023, owners of second homes have faced a 150% council tax premium intended to ease housing shortages. However, local residents are worried as this policy appears to be driving away holidaymakers and affecting the local economy. Councillor John Brynmor Hughes voiced concerns that the area, which relies heavily on tourism, may become empty of visitors. He believes the premium tax is unfair and burdensome, especially for those who want to return to their family homes. Many second home owners are now selling their properties, further impacting the local economy. Mike Blades, who owns a local pub, shares similar worries. He notes that many businesses depend on the influx of tourists and seasonal visitors for work. He feels the tax is a "blunt tool" that does not consider how often second homes are used. As a result, property owners are questioning the value of their investments. Real estate expert Rhys Elvins reports a significant drop in property values, affected by the premium tax and changing regulations on holiday lets. He notes that the market is now mainly composed of people relocating to live in Gwynedd, rather than purchasing second homes for vacations. While some locals believe the premium tax should be increased to tackle high home prices, others argue it has created a less vibrant community. Many second home owners tend to spend less in local businesses, leading to fewer customers for shops and restaurants. Overall, the tax has sparked a crisis in the tourism-dependent economy of Gwynedd.