Welsh tourism sector 'nervous' about performance as cost of living impacts visitor spending

ITV News

8 hours ago

It has been a "very mixed picture" for tourism businesses this year, with self-catering accommodation said to be the hardest hit by declining visitors and rising costs, Wales' leading tourism alliance has told ITV Wales.
Almost half of self-catering accommodation businesses say they have had fewer customers so far this year than last year.
That's according to the Welsh Government' s recent Tourism Barometer, which provides a regular snapshot of industry performance and gathered businesses' views in June this year.
60% of businesses reporting lower visitor numbers say a lack of disposable income or global economic uncertainty have been contributing factors.
There is also a strong trend emerging towards last-minute bookings.
It means only one in six operators said they feel 'very confident' to operate profitably this year.
The Welsh Government says it is working closely with the industry to help address the challenges they face.
"We're seeing a very mixed picture," Bethan Davies of Wales Tourism Alliance told ITV Wales.
"What we're seeing across Wales is a change in the patterns of visitors.
"There are a number of tourism organisations that are nervous about their performance this year. Numbers are down. People who are staying overnight are down, so we've got far more day visitors than we used to have.
"And people are finding the cost of living really impacting on their spend at the moment."
Bethan Davies also hit out at the tourism tax proposed by the Welsh Government, saying she finds it "very difficult to believe it is going to work in most of Wales."
"I think adding £40 a week for a family of four staying in self-catering accommodation is going to make a massive difference.
"Would you come here to a beach in Trearddur Bay, or would you go to a beach in Morecambe and save £40 and have an extra night out with the family?"
The Visitor Levy Bill, which was approved in the Senedd in July.
If plans go ahead, councils would have the power to charge up to £1.30 per person, per night, depending on the type of accommodation.
The Welsh Government says the levy could raise around £33 million a year to help fund infrastructure and local services in tourist hotspots, including the upkeep of footpaths, public toilets and waste collections.
'These reports lays bare the economic damage being inflicted on Welsh tourism,' said Nicky Williamson, Professional Association of Self-Caterers (PASC) UK's Lead Policy Advisor in Wales.
'What we are witnessing is the avoidable erosion of a vital sector, one that sustains jobs, communities, and Welsh culture. The figures are shocking, but not surprising to those of us on the ground.'
Ms Williamson said that the 182-day rule, which requires properties to be let for at least 182 days to qualify as a holiday let, as especially damaging.
'This is not a policy designed to support genuine businesses, it's a punitive approach that makes it harder for responsible operators to stay afloat,' Williamson added.
It is a measure the Welsh Government says is designed to tackle the impact of second homes on an area.
Suzy Farr, bookings manager for Trearddur Bay Holiday Homes on Anglesey, says she is optimistic for the future, but the business has had to adapt to survive – with people having less money and making more last-minute plans.
"We are busy right across the board. Things have changed in the last eighteen months," she told ITV Wales.
"There's a lot of bookings last-minute, but we've adapted by changing things to a 3-day travel away Friday to Monday, Monday to Friday getaways and long-term getaways. It has changed considerably in the last eighteen months though.""Things have become a lot more expensive, and so that people can come away, we've adapted."
Phil Brown, owner of the Sea Shanty Cafe in Trearddur Bay, said that hospitality is facing difficult challenges, so tourists visiting the area play a crucial role in staying afloat.
"We are doing our best to bring people here, and I think we've succeeded. And other businesses have opened up since we started," he said.
"Trearddur Bay has become a destination, and why not?"He added: "People say there are less people here this year than there were last year... I don't know.
"But I think if you come here, you haven't got to go to an airport, there's so much going for Wales but they don't seem good at marketing themselves, which is a shame."A Welsh Government spokesperson said, 'Tourism makes an important contribution to the Welsh economy and to Welsh life. "Wales has so much to offer, and we want to ensure that we realise that potential in a way that achieves a balance between our communities, businesses, landscapes and visitors.'We work closely with the industry to help address the challenges they face. Sector-specific support is available to businesses through Visit Wales via capital investment funding, marketing campaigns to promote the whole of Wales, year-round and other support for activities to boost the contribution of tourism and hospitality to the Welsh economy."