THE CLOSURE of Oakwood Theme Park has sent shockwaves through Pembrokeshire, with concerns growing that the tourism industry across Wales is facing a crisis of rising costs, taxation, and declining visitor spending.

Cllr Huw Murphy, speaking on behalf of the Independent Group on Pembrokeshire County Council, warned that the Welsh tourism sector is caught in a ‘perfect storm’ of economic pressures and government policies that threaten its long-term survival.

As a young man, he worked at Oakwood in its first summer in 1987 while home from his studies at Liverpool. He recalled that Oakwood in its early years was one of the foremost tourist attractions in Wales, attracting international visitors, including coachloads from Ireland due to its proximity to Fishguard and Pembroke Dock.

He acknowledged that Oakwood’s best years were behind it but emphasised that the park remained a well-known attraction that still drew large numbers of visitors. He said that for a county where over 20% of the workforce is employed in tourism, leisure, and hospitality, its loss will have a considerable impact on the Pembrokeshire economy, reducing both full-time and seasonal job opportunities.

Cllr Murphy raised concerns that the closure of Oakwood was not just a result of declining visitor numbers but also of increasing operating costs imposed by government decisions. He pointed to the rising cost of National Insurance Contributions introduced by the Chancellor in October 2024, combined with soaring energy prices, which have made it increasingly difficult for attractions like Oakwood to operate. On top of this, he warned that the much-touted tourism levy proposed by the Welsh Government could further discourage visitors and put additional strain on businesses.

He described a growing crisis in the Welsh tourism sector, with businesses struggling to cope with increasing costs while visitor spending is under pressure from the wider cost-of-living crisis. He said that tourism in Wales, and Pembrokeshire in particular, is facing a ‘perfect storm’ of ever-increasing operating costs combined with falling disposable incomes. Attractions like Oakwood, along with many other businesses within the tourism industry, will struggle to survive under these conditions.

Cllr Murphy called on the Welsh Government to recognise the urgency of the situation and provide support for the tourism sector, warning that failure to act could have long-term consequences for Pembrokeshire and other tourism-reliant regions. He said that the closure of Oakwood is a clear wake-up call to the Welsh Government that the tourism industry needs both direct and indirect assistance. Measures such as the proposed Tourism Levy will only lead to more business closures, making Pembrokeshire a less attractive place to visit. The direct result will be job losses, increased outward migration of young people seeking employment elsewhere, and an ageing population with fewer economic opportunities.

With the loss of Oakwood already making an impact, many in Pembrokeshire’s tourism industry fear that without intervention, the sector could see further business closures in the months and years to come.

THE CLOSURE of Oakwood Theme Park has sent shockwaves through the Welsh tourism industry, with fears mounting that it signals the start of a wider crisis for hospitality and tourism businesses across the country.

With over 20% of Pembrokeshire’s workforce employed in tourism and hospitality, the park’s sudden closure will not only impact its employees but have wider economic repercussions. Local businesses, from hotels and B&Bs to restaurants and attractions, are expected to feel the effects as visitor numbers decline.

A combination of decisions by both the Welsh and UK governments has led to mounting pressure on the sector. Increases in National Insurance, council tax premiums, the introduction of a 182-day minimum occupancy rule for holiday lets, and the proposed Welsh visitor levy (commonly referred to as a ‘tourist tax’) are all adding strain on businesses already struggling with rising costs.

Despite these concerns, First Minister Mark Drakeford MS recently denied in a Senedd finance committee evidence session that these policies were having a cumulative impact on tourism. However, industry leaders and local businesses argue otherwise, warning that the sector cannot withstand so many policy changes without long-term damage.

Tourism is worth an estimated £3.8 billion to the Welsh economy annually, providing employment in many areas where alternative job opportunities are scarce. Without sustainable policies that support the sector, local communities could see an exodus of workers forced to leave in search of employment elsewhere.

A spokesperson for the industry commented: “It is surely becoming obvious that a single sector cannot swallow so many changes without there being a cumulative – and wide-ranging – effect which will filter out to the whole economy. Many parts of Wales are reliant on tourism, and without it, communities will struggle to survive.”

Local MP Henry Tufnell also voiced his concerns about the closure, stating: “The closure of Oakwood Theme Park is incredibly disappointing news for Pembrokeshire. For over 30 years, it has been a much-loved attraction, bringing enjoyment to families across Wales and beyond, as well as supporting local jobs and the tourism industry.

My first thoughts are with the staff who have lost their jobs. This will be an extremely difficult time for them, and I urge Aspro Parks to provide as much support as possible.

Oakwood has been an iconic part of Pembrokeshire’s visitor economy, drawing tourists, creating employment, and contributing to local businesses that have relied on its success. Its closure will undoubtedly be felt across the community, and we must now focus on what comes next for the site and the people affected. The last thing Pembrokeshire needs is a derelict site that is sat empty for years.

I will be speaking with stakeholders to understand the full impact of this decision and what can be done to support those affected. If you need assistance, please do get in touch with my office.”

With Oakwood’s closure described as “just the tip of the iceberg,” concerns are growing that more tourism businesses across Wales could soon follow suit unless urgent action is taken to protect the industry.

CAREW CASTLE AND TIDAL MILL, a celebrated Pembrokeshire attraction, is aiming for a hat-trick of accolades as it competes in The National Tourism Awards for Wales. Having already secured the title of Best Attraction at both the Pembrokeshire Croeso Awards and the South West Wales Tourism Awards, the historic site is now vying for the national crown.

Daisy Hughes, Visitor Services Manager, expressed her excitement ahead of the ceremony, set to take place at Venue Cymru in Llandudno on Thursday, March 27. She said: “It would be brilliant to win a hat-trick of titles, but the competition is going to be really tough.

“We do have a fantastic offer at Carew Castle with its heritage and 2,000 years of history and a beautiful location with an iconic presence within the Pembrokeshire National Park. But it’s also down to how we manage the site and look after our staff and visitors, as well as our commitment to conservation, which makes us an all-round site with sustainability at the heart of everything we do.”

The awards, staged by the Welsh Government, celebrate excellence in a tourism industry that employs nearly 12 per cent of the Welsh workforce and generates £3.8 billion annually. Sponsored by foodservice company Castell Howell, the event will be hosted by broadcaster Aled Rhys Jones and will feature performances from Welsh of the West End, who reached the semi-finals of Britain’s Got Talent, and Band Pres Llareggub.

A total of 48 finalists have been shortlisted across 12 categories, including Best Hotel, Best Event, and Sustainable Tourism. Tŷ Milford in Milford Haven is also representing Pembrokeshire, competing in the Best Hotel category.

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, welcomed the event, saying: “We’re proud to support The National Tourism Awards for Wales in this Year of Croeso, as they provide an opportunity to recognise and celebrate excellence in an industry that is crucial to the Welsh economy.

“Congratulations to all who have been nominated. Wales has so much to offer visitors, and the high-quality experiences you provide contribute immensely to our attractiveness as a destination.”

Jim Jones, Chief Executive of North Wales Tourism, which is organising the event, said: “It’s wonderful to be hosting The National Tourism Awards for Wales here in North Wales.

“It is an opportunity to celebrate the best of the best in the tourism and hospitality sector in Wales and the exceptional job these businesses do in putting Wales on the international map.

“The sheer volume and quality of entries this year have underlined why Wales is a truly world-class destination and showcase what we have to offer visitors from home and abroad.

“Tickets are available to all for what promises to be a wonderful evening with fantastic entertainment and, most important of all, an opportunity to celebrate all that is best in Welsh tourism.”