Tourism Tax Fallout in Wales: Haven Scraps £3 Million Project at Presthaven Resort in Gronant, Prestatyn Due to Visitor Levy Concerns, What You Need to Know About

Published on December 7, 2025

A controversial new tourism levy in Wales has led to the cancellation of Haven’s £3 million investment in a Wetherspoons pub at its Presthaven Beach Resort in Gronant, near Prestatyn. The Welsh Government’s visitor tax, which has been introduced in the country to boost local economies, has become a point of concern for the tourism industry. According to critics, the levy, if applied, could raise costs for families, discouraging investment in the hospitality sector. As Haven halts its development plans, tourism officials are raising alarms over the tax’s potential to deter future growth in the industry. This move highlights the growing tension between government policy and the financial health of local businesses.

Impact of the Welsh Tourism Levy on Family-Friendly Investments

The introduction of the visitor levy has triggered concerns among holiday park operators and tourism businesses across Wales. The levy requires visitors to pay an extra charge for their stays, which critics argue could negatively impact family vacations and deter investment in much-needed tourist infrastructure. Haven, one of the UK’s leading holiday park operators, had planned a Wetherspoons pub at their Presthaven resort, a popular destination for families. Despite receiving planning approval for the project, the company decided to halt its plans due to the uncertainty surrounding the levy. This is an example of how the tax could result in unintended consequences, according to industry professionals.

The introduction of the levy would increase the cost of a family holiday in Wales, with charges ranging from £6.50 per night for a family of five to £45.50 per week. While this might seem like a small fee, for many families, it adds an additional burden on top of already expensive holiday packages. For example, Haven’s cheapest breaks start at just £49.99, and adding a levy could make these holidays far less affordable for budget-conscious families.

The Concerns from Industry Leaders

The head of North Wales Tourism, Jim Jones, has voiced strong opposition to the levy, highlighting the negative impact it could have on the region’s hospitality sector. He claims that instead of fostering growth, the levy could act as a deterrent to future investment. The decision to cancel the £3 million Wetherspoons project at Presthaven is a direct result of the uncertainty surrounding the tax, he says. While some believe the levy will help support local economies, others are questioning its long-term effectiveness in driving growth.

The introduction of this levy comes on the heels of other controversial policies, such as the 182 policy, which has already strained the self-catering sector. Critics argue that with the added VAT already affecting the industry, a tourist tax could push businesses to reconsider or cancel their expansion plans.

Local Governments Decide on Levy Implementation

The Welsh Government has made it clear that the decision to apply the levy will be left to local authorities, giving them the power to decide whether to implement the charge in their respective regions. While Flintshire County Council, home to the Presthaven Beach Resort, has not yet decided whether to introduce the levy, the uncertainty surrounding its implementation has already had a negative impact on business confidence. If the levy is introduced, Haven would likely face additional operational costs, further discouraging investment in its Welsh resorts.

The visitor levy is expected to raise funds for local infrastructure and tourism activities. However, businesses argue that the added burden on visitors and tourism operators will outweigh any benefits from these investments. Jim Jones, among other critics, suggests that the Welsh Government should reconsider its approach and work towards policies that promote growth rather than stifle it.

How the Visitor Levy Could Affect the Broader Welsh Tourism Landscape

The cancellation of Haven’s £3 million investment is not an isolated incident. There are concerns that this could become a trend, with other businesses pulling back on future developments in Wales due to the uncertainty surrounding the tourism tax. Wales is already facing challenges in the hospitality sector, with the self-catering industry struggling under current policies, and there is a real fear that the visitor levy will exacerbate these issues.

While some believe the tax will help fund important local projects, the tourism sector remains skeptical. Investors may shy away from the region, and families may find themselves opting for more affordable destinations outside Wales. The question remains whether the levy is a short-sighted move that could damage Wales’ reputation as a family-friendly destination, or whether it will lead to long-term benefits for the region.

What Travelers Should Know Before Booking in Wales

For travelers considering a trip to Wales, it is important to stay informed about the potential impacts of the visitor levy. Local governments are still deciding whether to introduce the tax in certain areas, and it could affect the overall cost of your holiday. If you’re planning to visit Prestatyn or Gronant, be sure to check whether the levy applies to your stay, as it could add an additional charge to your accommodation fees.

Furthermore, travelers should keep an eye on any potential changes in holiday park investments. With businesses like Haven rethinking their expansion plans, some facilities may experience delays or cancellations in the future.

Exploring Alternatives to the Welsh Visitor Levy

While the tourism levy in Wales aims to address the need for investment in local infrastructure, there may be better ways to support both local economies and the tourism industry. Instead of a blanket tax, the government could explore alternative funding models, such as private-public partnerships, which could promote growth without burdening visitors or businesses.

Some ideas include investment incentives for businesses in key tourist regions, or supporting the development of affordable and sustainable tourism programs. By addressing the concerns of tourism operators and local communities, Wales could become a more attractive and competitive destination in the global market.

A Path Forward for Welsh Tourism?

While the visitor levy is still in its early stages of implementation, it’s clear that the tourism industry in Wales is facing some challenges. Whether the tax will drive long-term benefits or result in a decrease in tourism investments remains to be seen. Wales needs policies that support the growth and development of the tourism sector, rather than policies that could limit the economic potential of one of the UK’s most popular destinations.