Tourism: Overseas visitors to Wales drop by 33%

The Federation of Small Businesses wants the Welsh government to rethink the introduction of a planned tourism tax

The number of overseas visitors to Wales dropped by a third in three years, new figures show.

International Passenger Survey data, released by the Welsh government, shows there were 33% fewer inbound visitors to Wales in 2022 than 2019.

The amount they spent also dropped by 24%.

Businesses said that while wet weather could deter holidaymakers, a bigger factor was the cost of living crisis.

Sean Taylor, founder and president of Zip World based in Llanrwst, Conwy county, said the six-week school summer holiday was "absolutely essential" for the business.

He added: "The 49 days of summer holidays, including the Scottish holidays, accounts for about 55% of our turnover during the year - it's that important.

"We've had 13 consecutive interest rate rises - it's going to hit people in the pocket."

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Mr Taylor said the business, which employs about 850 people across centres in Wales and England, has noted that people are still spending on the daring rides, but are cutting back in cafes and shops.

"We were forecasting probably a 10% (increase) on last year, [but] at the moment, if we can come in where we were last year, it will be a real result," he said.

It is at the cafes and shops at attractions like Zip World where visitors are said to be cutting back

The poor weather has meant a reduction in day-trippers, with Mr Taylor saying it has affected people who would usually have travelled from Liverpool, Manchester and Wirral.

It is a similar story in the middle of the country, according to Roland Rees-Evans, director of Penrhos Park holiday park in Llanrhystyd and chairman of Mid Wales Tourism Cymru.

He said there was "no doubt" he had seen "a bit of a slow down" and, while bookings were on a par with last year, "people are looking for the bargains".

He added that the main issue for businesses was rising costs.

"The cleaning costs, the rates, everything associated with it is actually going up which is obviously squeezing on margins," said Mr Rees-Evans.

"People with mortgages are already struggling and it has its challenges for all of us, not just for the businesses but for everyone in rural Wales and across Wales as a whole."

Office for Nation Statistics data released in May 2023 and published by the Welsh government last week indicated that visitor spend in Wales was estimated to be £391m in 2022, down on the £515m spent in 2019.

Ben Francis of the Federation of Small Businesses (FSB) said the organisation has called on the Welsh government to rethink the introduction of the planned tourism tax.

"We feel now isn't the time for another barrier to be added in circumstances where we're seeing far lower numbers visiting Wales," he said.

He added that FSB was pleased to see the Welsh Affairs Select Committee back calls for both the UK and Welsh government to improve the marketing of Wales as a holiday destination for overseas visitors.

"We're seeing far lower numbers visiting Wales," says Ben Francis from the FSB

The Welsh government said it was aware of the challenges facing the tourism sector and is working closely with the industry.

It defended the planned visitor levy, adding that it could "make a real difference" by generating revenue.

A spokesman added: "Our focus is on spreading tourism benefits throughout Wales, encouraging increased spend through the year.

"The impact of the economic choices taken by the UK government is having a negative impact on Welsh tourism. The Welsh government is using all the levers at its disposal to support people, families, businesses and communities through these difficult times."

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