Wales to Regulate Holiday Accommodation with New Licensing Requirement, Get the Details Here

Published on November 4, 2025

A new law in Wales will require owners of self-catering holiday cottages and holiday flats to apply for a license which will cost £75 annually. It is currently passing through the Welsh Assembly. This is the first step to regulating and enforcing safety and quality standards for the self-catering holiday rentals in Wales.

Wales’s tourism industry is one of the most important economically in the country. New regulations will only enhance safety and professionalism to the accommodation providers and in return to the customers considering the self-catering rentals in Wales in comparison to the Airbnb and Vrbo rentals.

The Impact of the New Licensing Requirement
The new law requires all self-contained accommodations, including holiday cottages, flats, and other similar properties, to meet certain fitness for accommodation standards. Providers will need to demonstrate that their properties meet basic safety criteria, such as having gas and electrical safety certificates, insurance, and smoke and carbon monoxide alarms. These standards are intended to ensure that all holiday accommodations in Wales provide a safe and comfortable experience for visitors.

This licensing scheme is set to cover all self-catering accommodation that provides amenities for washing, cooking, and sleeping, and it is aimed at ensuring that properties are up to the standards expected by travelers. It is important to note that the law will not initially apply to hotel rooms with self-catering facilities, hostels, bunkhouses, or caravans on licensed sites, though these may be added to the scheme at a later date.

For providers, this will mean a modest £75 annual fee to register and comply with the new requirements. The Welsh government believes this is a reasonable cost, given the benefits it brings in terms of maintaining high standards across the tourism accommodation sector.

How the New Law Will Affect Tourism Businesses
The introduction of this licensing requirement will have a significant impact on the way holiday accommodation providers operate in Wales. Those who do not comply with the new regulations could face legal consequences, including the possibility of being issued a fixed penalty notice. However, the Welsh government has indicated that it will prioritize education and guidance over immediate prosecution, with penalties expected to be applied only in cases of severe non-compliance.

The new law comes as part of a broader effort to professionalize the tourism sector in Wales and ensure that visitors to the country are provided with high-quality, safe, and well-maintained accommodations. Tourism is a major contributor to the Welsh economy, with more than 69 million visits to the country in 2023 and a £4.95 billion combined spend by visitors. As such, maintaining the integrity and safety of the tourism sector is a priority for both the government and the industry.

The Relationship Between Tourism, Regulation, and Quality in Wales
As Wales continues to attract millions of tourists each year, the government has been increasingly focused on ensuring that the industry remains sustainable and high-quality. The tourism accommodation sector has seen significant changes with the rise of short-term rentals, which are often outside the scope of traditional regulatory frameworks. With platforms like Airbnb, Booking.com, and Expedia offering a wide range of short-term rental options, it has become more difficult to ensure that every property meets the same safety and quality standards as established hotels and resorts.

The new licensing law aims to level the playing field for all accommodation providers, ensuring that whether a traveler stays in a hotel, a B&B, or a holiday cottage, the same basic standards are met. This will ultimately benefit both visitors and responsible businesses, ensuring that tourists can enjoy a safe, comfortable stay, and business owners can operate without concerns about unfair competition from non-compliant properties.

Balancing Regulation and Growth in the Tourism Sector
The new regulations also highlight the Welsh government’s ongoing commitment to developing a sustainable tourism industry that benefits local communities and ensures long-term growth. While tourism provides thousands of jobs across Wales, it also places strain on local resources and infrastructure. By ensuring that accommodations meet specific standards, the government aims to protect both visitors and the communities that welcome them.

Regional Tourism and the Impact of New Regulations
Wales is home to a rich variety of tourist attractions, from the stunning coastline of Pembrokeshire to the rugged mountains of Snowdonia and the historic towns of Cardiff and Swansea. As such, tourism is particularly vital to rural areas, where businesses often rely heavily on seasonal visitors. The new licensing requirement is designed not only to maintain quality standards but also to support the growth of rural tourism in the country.

By setting high standards for accommodation, the Welsh government hopes to attract more high-quality visitors to regions that have traditionally been underserved by large hotel chains. Additionally, the law will encourage new businesses to enter the market, knowing that they will be operating on a level playing field.

Impact on Local Communities and the Future of Tourism in Wales
The introduction of this new law will undoubtedly have an impact on local communities. By ensuring that all accommodation providers adhere to the same standards, the government is helping to preserve the integrity of Wales as a destination for quality tourism. Tourism businesses will be better equipped to cater to visitors’ needs, creating a more sustainable and responsible tourism environment across the country.

At the same time, the introduction of the tourism tax (visitor levy) will be considered by the 22 local councils in Wales, with consultations expected in the coming months. The visitor levy, which will be separate from the new licensing law, could provide further funding to support the tourism sector and enhance the visitor experience.

The Future of Tourism Regulation in Wales

Wales is taking proactive steps to ensure that its tourism industry remains competitive, sustainable, and high-quality. The introduction of the £75 annual licensing fee for holiday accommodation providers is just one part of a broader strategy to regulate the rapidly growing short-term rental market and ensure that tourists have access to safe, high-quality accommodations.

As tourism continues to play a vital role in the Welsh economy, these new regulations are expected to help foster long-term growth, attract more high-quality visitors, and ensure that the country’s natural and cultural heritage remains preserved for future generations. The impact of these changes will likely be felt across the industry, from business owners to visitors, and will continue to shape the future of tourism in Wales.