WELSH businesses are under increasing pressure to raise prices due to rising labour costs, according to the latest Quarterly Economic Survey by Chambers Wales South East, South West and Mid.

The first survey of 2025 reveals that 85% of businesses in Wales cite labour costs—including salaries, pay settlements and contractor fees—as a major pressure in the first quarter. This marks a rise from 81% in the final quarter of 2024.

Firms are also bracing for the impact of increases to the National Minimum Wage on 1 April and Employer National Insurance Contributions on 6 April. As a result, 44% of surveyed businesses said they plan to raise the price of goods or services by up to 15% to absorb these costs. A further 10% said they will increase prices due to the National Insurance rise alone.

Despite financial pressures, workforce stability remained strong. Seventy-six per cent of businesses reported no change in staffing levels over the past three months. However, the proportion of companies attempting to recruit fell to 40%, down from 45% in the previous quarter. Looking ahead, 58% expect their workforce to remain unchanged in the next quarter, while 23% plan to increase staff numbers.

The Q1 survey also reflected cautious optimism, with 39% of respondents reporting a rise in export sales and bookings. Additionally, 28% of businesses said they had increased investment in plant, machinery, technology and equipment. Nearly half (45%) forecast an improvement in turnover.

Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said:
“In our recent Quarterly Economic Surveys, including this survey for Q1, recurring concerns for businesses centre around labour costs and taxation. As changes are set to come into effect in April, businesses in Wales are having to review their goods and services prices, ongoing costs and recruitment plans.

“While there have been glimmers of optimism in exporting and some aspects of investment this quarter, firms will require reassurance and action from government to avoid stagnating and unlock growth. The Office for Budget Responsibility’s revised growth forecasts suggest that economic growth is less certain this year but will be a longer-term achievement.”

PEMBROKESHIRE COUNTY COUNCIL has confirmed that it will not be introducing a visitor levy during the current administration, offering a measure of certainty to the county’s tourism sector amid a period of major change.

The announcement was made by Cllr Paul Miller, Deputy Leader and Cabinet Member for Place, the Region and Climate Change, during the Visit Pembrokeshire Tourism Summit and AGM held at Folly Farm Adventure Park & Zoo on Wednesday (Apr 3).

Cllr Miller said: “We provide a fantastic tourism offer here in Pembrokeshire and it is an important part of the county’s economy.

“In addition to jobs, this administration’s approach is also about the year-round facilities and attractions that benefit local people too. We recognise the tourism landscape has experienced significant change, be that second homes legislation, tax changes, and we’re aiming to provide some certainty to the industry.

“We acknowledge it’s important to recognise there’s balance to be struck between supporting the industry and dealing with some of the challenges associated with peaks in season. Therefore, I’m confirming it’s not our intention to take forward the option of a visitor levy in Pembrokeshire during this administration.

“Like the hospitality and attraction sector across Pembrokeshire’s amazing tourism offer, I am looking forward to a great summer season for the industry.”

A visitor levy, sometimes called a tourism tax, has been proposed in other parts of Wales to help fund public services and infrastructure in tourist hotspots, but the move has been met with concern by many in the hospitality sector.

Emma Thornton, Chief Executive of Visit Pembrokeshire, welcomed the clarity. She said: “Visit Pembrokeshire welcomes this decision and thanks Pembrokeshire County Council for listening to tourism businesses.

“The cumulative impact of changes in Welsh Government policy affecting tourism businesses, alongside implications of the UK Government’s Autumn Budget, has resulted in real anxiety amongst the trade about the future.

“This decision provides some breathing space and certainty around the short to medium term, which is greatly appreciated.”

Visit Pembrokeshire is the official Destination Management Organisation for the county, providing tourism leadership, marketing, industry support and project delivery. Its base is at The Bridge Innovation Centre in Pembroke Dock.

VISIT Pembrokeshire has appointed Neil Kedward, Chief Executive of the Seren Collection, as its new Chair following the departure of Jane Rees-Baynes.

The announcement was made during the Visit Pembrokeshire Tourism Summit and Annual General Meeting held at Folly Farm Adventure Park & Zoo on Wednesday (April 2).

Jane, who owns Elm Grove Country House, had served as Chair since the organisation launched in November 2020. She steps down after more than three years of leading the county’s official Destination Management Organisation (DMO).

Speaking at the event, Jane said: “It has been an absolute privilege to be Chair of Visit Pembrokeshire, and I’m delighted to be handing over to Neil, who will be a fabulous Chair.”

Mr Kedward said he was honoured to take up the post: “I hope to emulate the incredible leadership and dedication Jane has shown over so many years. Jane invited me onto the previous Pembrokeshire Tourism board back in 2018. I’m incredibly proud of what we’ve built together—alongside our business and community partners, and our outstanding CEO, Emma Thornton.”

He added: “Since forming just four years ago, Visit Pembrokeshire has gone from strength to strength, championing our county with growing reach in both domestic and international markets. Jane has been instrumental in that success.

“Pembrokeshire’s visitor economy is at an exciting crossroads. I’m passionate about driving sustainable growth and ensuring that our local businesses don’t just survive, but thrive.

“Visit Pembrokeshire plays a key role in bringing the business community together, empowering our members, and enhancing the visitor experience. We also have a crucial role in promoting Pembrokeshire on an international stage to grow our visitor economy responsibly.

“I see this Chair position as a baton to be passed on every two years, and I’ll work to ensure a smooth transition when the time comes. In the meantime, I’m looking forward to working with our team, members, and communities to turn our shared vision into reality.”

Chief Executive Emma Thornton praised Jane’s contribution: “It has been an absolute pleasure to work alongside Jane since Visit Pembrokeshire launched in 2020. Her dedication and commitment to Pembrokeshire are second to none, and she has been a tremendous support to both me and the team during this first phase of our journey.

“She will be a hard act to follow, but we know Neil—who has led the development of the hugely successful Seren Collection and Routescape—is more than up to the challenge. He is a passionate ambassador for Pembrokeshire and will bring renewed energy to the role.”

Visit Pembrokeshire is a trade-led organisation providing tourism leadership, advocacy, destination marketing, research, and business support. Its board includes private sector representatives, Pembrokeshire County Council, Pembrokeshire Coast National Park Authority and PLANED.

The organisation is based at The Bridge Innovation Centre in Pembroke Dock.