North Wales tourism businesses struggle with rising costs and low visitor numbers, raising fears of a sector collapse before a new tax arrives.
North Wales: Thousands of tourism and hospitality businesses are in trouble. Owners are facing a cost and mental health crisis. Many jobs are at risk, and businesses are closing or reducing hours to survive.
One business owner from Anglesey shared the struggles of the sector. Industry leaders blame harsh policies and rising costs. They warn of significant changes in the region’s economy as unemployment rises.
Visitor numbers are dropping, and costs are increasing. A new tourism tax is set for 2027. Frankie Hobro, owner of Anglesey Sea Zoo, said she’s not worried about the tax. She believes many businesses will be gone by then.
Jim Jones, CEO of North Wales Tourism, said the visitor economy is “tanking.” He warned that politicians risk harming the industry. There’s no clear plan to help businesses recover.
Nicky Williamson from PASC UK expressed concern about council tax premiums affecting holiday let operators. Many are distressed by unexpected payment demands, which can be significant.
Anglesey Sea Zoo is a year-round attraction, but Frankie announced it will close three days a week for now. She cited rising costs and low visitor numbers as reasons for this decision.
Frankie noted that while people want to visit, they’re spending less. They might pay for entry but skip buying food or gifts. This has hurt businesses, leading to losses during the holiday season.
The cost of living crisis is affecting business owners too. Rising costs for utilities and staff are a double blow. Many owners are doing more work themselves, which isn’t sustainable.
Nicky Williamson mentioned that Welsh tourism is struggling under several new policies. These include National Insurance and minimum wage increases, which add to the burden on businesses.
Operators are facing pressure to meet occupancy thresholds, leading to price cuts. A survey found that many are discounting prices, risking their profits. Visitor numbers in Wales are down 23% this year.
Many businesses are just trying to survive day by day. Bills are rising, and without government help, they can’t cope. This situation is affecting mental health across the sector.
A recent survey showed that 93.5% of holiday let operators feel stressed about the occupancy threshold. Many doubt they’ll still be in business in three years due to these pressures.
Nicky expressed deep concern for the future of small Welsh businesses. Tourism is vital to Wales, and once these businesses close, recovery will be tough.
New policies aim to prevent over-tourism, but they’re hurting local communities. Families are being priced out of their homes due to the rise in holiday rentals.
Next week, Jim Jones will speak to the Senedd about the tourism tax’s potential impacts. A study predicts significant job losses and economic downturns if the tax is implemented.
The Welsh Government claims the tax will help fund local services. However, Jim argues that the sector is too fragile to handle such a burden.
Jim recently visited Japan, where they have a clear plan to boost tourism. He noted that Wales lacks a similar strategy, despite being promoted as a top destination in the past.
Ministers are ignoring industry concerns, which is harming the sector. Jim believes the tourism industry is crucial for Wales and needs support to thrive.
The Welsh Government aims to grow tourism sustainably. They offer support through Business Wales and Visit Wales to help businesses face challenges.
Despite this, local businesses are struggling. Frankie sees the desperation in her community. Many are worried about the future, and some have already left the industry.
Tourism isn’t the only sector affected; pubs are also cutting back. Frankie is concerned about rising unemployment and the overall economic impact in North Wales.
She fears losing the unique mix of local businesses that attract visitors. Without a change in approach, the rich culture of North Wales could fade away.