Almost half of tourism operators had fewer visitors last year compared to the pre-Covid 2019 season and the majority are feeling pessimistic about the 2023 summer. According to a survey carried out by the Welsh Association of Visitor Attractions, the recent half-term break in February was also disappointing with 29% of operators saying they had fewer visitors compared to the same time last year.
While there’s no ignoring the fact that we’re in the middle of a cost of living crisis, a leading industry figure has blamed the low numbers on “loony” measures introduced by the Welsh Government.
Ashford Price, chairman of Dan yr Ogof and the National Showcaves Centre for Wales, said: “The results from over 100 of the leading attractions in Wales should ring alarm bells within the Welsh Government as it shows less visitors are coming into parts of Wales. Welsh tourism is still trying to recover from the pandemic, and many operators are paying back loans related to Covid.”
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He added that recovery is being hampered by tourism policies apparently based on a "loony left-wing fantasy world". He said the prospect of introducing of a tourism tax makes tourists an "unwelcome necessity" and ministers have failed to look properly at what damage the tax will do to the Welsh tourism industry.
“The self-catering sector in Wales has always been regarded as the jewel in the crown of Welsh tourism owing to its very high standards and the amount of repeat business it generates for Wales,” Mr Price continued. “However, this sector has been singled out for their special loony treatment.”
New occupancy rules for businesses mean that they need to be occupied for at least 50% of the year (182 days) to prevent them from being classed as second homes and being subject to premium council tax rates. Mr Price said the new rules will force many operators out of business and many will put their properties up for sale.
He said: "However, most of these properties are in seaside hot spots, or situated in idyllic rural locations. Once these properties are on the market the Welsh Government thinks that they will be purchased by first time local buyers. However, this is another ‘loony idea’ as it is estimated that many of these properties will sell for well over £350,000, which is well out of the reach for most young couples wanting to buy their first home."
He questioned instead why don't Welsh councils "just build more starter homes for young people which are desperately needed".
Although the Welsh Government has previously encouraged rural businesses to diversify by developing tourist accommodation, the new rule change is predicted to force 1,200 Welsh family business to close, Mr Price claimed.
He added: “The Welsh Government must bear full responsibility for destroying peoples hopes and livelihoods. Their short tourist season will make it near impossible for many to get anywhere near the 182 days of required bookings, thus they could be facing huge rate increases making their accommodation unviable.
"Where is the governments loony logic in promoting a diversification scheme only to then make it impossible for it ever to be a success?"
The tourism sector has said the new rules "punish" business owners while one second home owner has sold his property because he's "never felt so unwelcome".
Mr Price is also highly critical of plans to introduce a visitor levy in Wales, which could see a small tax added to overnight stays in parts of the country, with the money used to support communities impacted by tourism. The levy would potentially be used for things such as beach cleaning or additional infrastructure.
Mr Price continued: "The new tourism doctrine now flowing out of Cardiff is that expert tourism advice should be ignored, and that politicians with no background knowledge of tourism must be trusted to create a unique tourism utopia in Wales. This utopian vision appears to be based on Wales getting fewer tourists, less accommodation being available, a shorter summer season, and the Welsh tourist industry transformed into a shadow of its former self.
"However, their fantasy ideology will only flourish if holiday makers who come mainly from England are then made to feel truly welcome and are prepared to pay extra taxes to visit Wales in the future. Another unknown factor is whether tourists will even be able to locate enough holiday accommodation for their stay in Wales from the remnants of a once flourishing Welsh self-catering industry.”
Conwy Council leader, Charlie McCoubrey, has also said the Welsh visitor tax can't be justified.
Meanwhile the Welsh Tories have said the latest “Welsh tourism barometer” shows that the 2022 visitor volume is still down on pre-pandemic levels. They said market confidence is lower in Wales than the rest of the UK, with 7% fewer businesses expecting an increase in customer numbers and businesses unable to fill a majority of their available capacity.
Tom Giffard MS, the Welsh Conservative Shadow Tourism Minister, said the situation can only worsen given the Labour Government’s plan to slap a tourism tax on the industry here in Wales and to discourage self-catering accommodation at every opportunity.
The Welsh Government were asked to comment.
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