Business
Last orders?: Pubs and restaurants face ‘diabolical economic time’
BUSINESS rate changes threaten to call time on more pubs, restaurants and hotels next year, triggering a fresh wave of closures across Wales, an industry chief has warned.
David Chapman, executive director for trade body UKHospitality in Wales, told the Senedd’s economy committee his industry faces “enormous” pressures.
He questioned why hospitality businesses were excluded from the Welsh Government’s plans to cut rates for retail businesses on high streets in town and city centres.
Mr Chapman said: “We’ll end up with us seeing rises in rates from next April worth nearly £7,000 to a pub, £15,000 to a big restaurant and about £50,000 to a hotel. That, on top of all of the other circumstances, will compress and possibly reduce our ability to carry on.”

He added: “We’re going to be cutting back on staff every day, we’re going to be closing for more. Maybe instead of a pub being shut on a Monday then a Tuesday, it’s probably going to be a Wednesday. We’re seeing that some places inevitably will have to close.”
Giving evidence on September 24, Mr Chapman warned the hospitality industry is going through an “absolutely diabolical economic time” focused on survival, not profitability.
“It’s a grave position without any doubt,” he said.
“On the consideration of readjusting business rates, we pay about three times more than we should because we’re bricks and mortar buildings and not internet businesses, for instance.
“The help that would make a great difference to us immediately in Wales.”
The hospitality representative estimated job losses in the industry in Wales could be greater than the impact of Tata Steel’s decision to cut 2,500 jobs at the steelworks in Port Talbot.
“Some 89,000 jobs in hospitality have gone in the last ten months across the UK,” he said, before adding: “We’ve taken a hit of about seven times more than most other sectors.”
Mr Chapman told the committee Welsh food and drink initiatives have only a fraction, “probably a twentieth”, of the financial “firepower” available in Ireland despite Wales having world-class products such as lamb.
He said businesses are supportive of local produce but are often forced to choose cheaper, more readily available alternatives due to tight margins and price-conscious customers.
“The cost side of things has gone mad,” he warned.
“We’ve had national insurance contributions this year. One hotel in north Wales employs 80 people and its NI bill has gone up £2,500 a week since April.”
Mr Chapman used an analogy of a sandwich to describe the pressure on businesses, where the bottom half – representing costs like wages and energy – has grown much bigger than the top half representing customer spending.
“The middle bit of the sandwich would be the profitability,” he said.
“That’s now become virtually non-existent in many businesses and it’s become a way of making a living rather than being able to reinvest in the product.”
Business
Amazon invests £2.4 billion in Wales since 2010
Report highlights jobs, training and community support across the country
AMAZON has revealed it has invested more than £2.4 billion in Wales since 2010, according to its latest UK Economic Impact Report published this week.
The figures, drawn from the updated Amazon Economic Impact Hub, show the company’s contribution to jobs, regional growth and community initiatives across Wales and the wider UK over the past fifteen years.

Economic contribution
The report estimates that Amazon’s investment has generated £1.8 billion in goods and services for the Welsh economy since 2010.
During that time, the company has created more than 2,000 full and part-time jobs across Wales and supported hundreds of residents through skills development and apprenticeship programmes.
More than 430 people in Wales have completed Amazon’s career development and training initiatives, and over 90 apprentices have graduated through the company’s apprenticeship programme.
Community engagement
David Marcok of Amazon Swansea said: “Amazon is committed to strengthening the regional economy and supporting the broader Welsh community through strategic investments, employment creation, charitable contributions and community engagement initiatives.
“In 2025 so far, our team has worked closely with organisations such as Save the Children and Wales Air Ambulance through volunteering, product donations and direct financial assistance. We look forward to expanding these efforts further in the months ahead.”
Major UK expansion
Nationally, Amazon recently announced plans to invest £40 billion in the UK between 2025 and 2027. The investment includes the construction of four new fulfilment centres and several delivery stations, as well as upgrades to its existing network of over 100 facilities.
The move will create thousands of new permanent jobs, with most positions based outside London and the South East. These include 2,000 new roles at a state-of-the-art fulfilment centre in Hull and another 2,000 in Northampton.
As one of the UK’s top ten private sector employers, Amazon currently employs more than 75,000 people nationwide, with full-time salaries starting at £28,000 per year (£30,000 in London). The new sites will offer over 60 different job types, including roles for robotics technicians, safety specialists and mechatronic engineers.
Business
‘Eyesore’ Pembrokeshire Roch Gate Motel demolition starts
DEMOLITION works for a multi-million-pound scheme to redevelop a derelict Pembrokeshire motel, described as “one of the last true blots on our county’s landscape” have started.
In an application approved by Pembrokeshire Coast National Park’s May development management committee, Nick Neumann of Newgale Holidays was granted permission to redevelop the former Roch Gate Motel to a mixed commercial and community use hub called ‘The Gate,’ including a village shop/post office, bistro/restaurant, and a tourism development of 18 holiday lodges.
The vacant derelict former motel – dubbed an “eyesore” in previous applications – closed back in 2008 and has a history of later approved planning schemes, including as a bespoke hotel and an affordable housing scheme, but none came to fruition.
Speaking at the May meeting, applicant Nick Neumann, who has become a county councillor since the scheme was first mooted, said: “The former Rochgate Motel located at the gateway to the St Davids Peninsula on the A487 is somewhat famous for the wrong reasons as it remains one of the last true blots on our county’s landscape. Namely the ‘pink palace’ has remained dormant for nearly 20 years slowly deteriorating in condition whilst various proposals have come forward and never materialised.
“The site, originally a former World War 2 radar station which became a commercial premises including motel, restaurant, spa and events facility in the early 1960s, was a much-loved popular venue for nearly 50 years before closing its doors in 2008.
“Today we still receive comments from people who loved the motel back in the day.”
He added: “The proposal will bring a significant multi-million-pound investment into the community, create 18 FTE jobs, restore lost community provisions, and will see the revitalisation of the brownfield site with a new exciting provision to our growing community of Roch.”
Other speakers at the meeting raised their support for the proposals, with former community council chair, and chair of the Nolton and Roch community Land Trust, David Smith saying the scheme would “significantly enhance the convenience and wellbeing of local residents,” as well as creating jobs and would “replace a decaying eyesore that is a blight on the community”.
Current community council chair Michael Harries said the community has been “tarnished by a pink monstrosity eyesore” since the motel closed in 2008.
Speaking as the demolition got underway, Cllr Neumann said: “I’m just happy that we can finally make a start on the project and bring the vision for ‘The Gate’ to life. It’s been nearly three years since we bought the site so it’s great to be finally making a start. Thank you to everyone who has supported us thus far.”
Business
‘Don’t follow suit’: Welsh tourism bill faces ‘horror story’ warning from Scotland
TOURISM leaders have urged Wales not to follow Scotland’s lead by replicating a “failed” licensing scheme that has “harmed” the industry and created a “thriving black market”.
Last week, the Welsh Government unveiled a tourism bill in the Senedd which, if passed, will create a mandatory licensing scheme for short-term Airbnb-style rentals.
But industry representatives gave a damning account of a similar policy in Scotland, describing the experience since its introduction in 2022 as a “real horror story”.
Marc Crothall, chief executive of the Scottish Tourism Alliance, warned the policy has created “far greater harm than good” as he gave evidence in the Senedd.
He told the economy committee: “When policy is developed without a clear objective and without reliable data, it fails, and Scotland… is that case study.”
Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, pointed to two successful judicial reviews brought against Edinburgh Council. She warned the entire Scottish scheme is “in breach” of the Human Rights Act.
She said: “I would just urge the Welsh Government and policy makers to really take heed of these warnings… don’t do it as Scotland has done it – or you may well end up in court.”
Ms Campbell argued that rather than solving housing problems, the policy was “harming the wrong people and regulating the wrong thing”.
Calling for extreme caution, she criticised the Welsh Government’s projected £75 annual fee for the new licence, labelling it “entirely uncredible” based on Scotland’s experience.
Ms Campbell – who has run a self-catering property for 23 years – told Senedd Members while low fees were promised in Scotland, the reality is they range from £205 to £5,698.
She also dismissed assurances that artificial intelligence and automation would keep administrative costs down as “entirely unrealistic”. “Unless Wales has come up with amazing AI that I’m not aware of, I just don’t think it’s credible,” she said.
She argued the Scottish policy was flawed from the outset because it wrongly tried to solve a housing crisis by regulating tourism, similar to the rationale in Wales.
Ms Campbell warned of the impact on small operators, with 70% of the Scottish self-catering sector made up of women aged over 55 – a figure she wagered was similar in Wales.
“These are the people you’re harming,” she said.
She told the committee the “horror story” in Scotland has seen operators “leaving in droves”.
Mr Crothall added this has led to empty homes, pointing to 230 properties on the Isle of Skye that “remain purely second homes” after their owners opted not to apply for a licence.
Both witnesses stressed they were not against regulation but they argued a separate licensing scheme was disproportionate.
Ms Campbell said the industry supports a national register that includes mandatory health and safety checks but she questioned the need for a second, more costly licensing layer.
“My question is: why do you need licensing on top?” she asked the committee. “If I were a policy maker in Wales, I would wait until I had all the data… it feels premature.”
Giving evidence during an earlier session on November 5, finance secretary Mark Drakeford defended the tourism bill as “good for the industry”. The former First Minister argued the bill would create a level-playing field and reassure visitors.
Prof Drakeford said Wales had learned from Scotland’s “locally based scheme” – which he said had caused confusion – by opting for a simpler, national model.

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